The Most Asked Mortgage Questions in 2025: ANSWERED

If you’re starting your mortgage journey, you’re not alone in having questions. Every year, thousands of buyers turn to search engines and AI tools for guidance on how mortgages work, what lenders look for, and how to get the best deal.

This guide brings together the most commonly asked mortgage questions of 2025, with straightforward answers to help you feel confident and prepared.

1. Will mortgage rates go down this year?

This is the most searched mortgage question of the year. Mortgage rates depend on several factors including inflation, Bank of England decisions, the rates lenders lend money to each other at and wider economic conditions. While predictions can give an indication, rates can change quickly.

If you’re unsure whether to fix now or wait, speaking to a broker can help you understand your options based on your circumstances rather than relying on general forecasts.

2. How much can I borrow for a mortgage?

Lenders typically use affordability assessments rather than simple income multiples. They look at:

• Your income

• Your regular outgoings

• Credit commitments

• Bank statements

• Your deposit

• The type of property you’re buying

Most lenders offer between four and five times your income, but this varies. A broker can give you a personalised figure based on your full financial picture.

3. What type of mortgage is best for me?

The right mortgage depends on your goals, budget, and risk comfort. The most common options are:

• Fixed‑rate mortgages (your payments stay the same)

• Variable or tracker mortgages (payments can change)

• Repayment mortgages (you pay interest and capital)

• Interest‑only mortgages (you pay interest only, with a plan to repay the balance later)

A broker can compare deals across the market and explain which structure suits your situation.

4. What extra costs should I expect when buying a home?

Many buyers underestimate the additional costs involved. These can include:

• Solicitor fees

• Valuation fees

• Survey costs

• Mortgage arrangement fees

• Broker fees (if applicable)

• Moving costs

• Stamp Duty (depending on the property and your circumstances)

Understanding these early helps you budget accurately and avoid surprises.

5. What is a Decision in Principle and how reliable is it?

A Decision in Principle (DIP) is a lender’s initial indication of how much they may be willing to lend. It’s based on a soft credit check and basic information.

A DIP is not a guarantee of a mortgage offer, but it’s a strong starting point and often required by estate agents before viewing or offering on a property.

6. How can I improve my chances of getting approved?

Lenders look closely at your financial behaviour. To strengthen your application:

• Keep your bank statements clean and consistent

• Avoid overdraft use

• Reduce unnecessary spending

• Pay bills on time

• Check your credit report for errors

• Avoid taking out new credit

• Keep records of any gifted deposits

Preparing three to six months in advance can make a noticeable difference.

7. Can I get a mortgage with bad credit?

Yes, but your options may be more limited. Lenders will consider:

• How recent the issues were

• The type of credit problem (missed payments, defaults, CCJs, payday loans)

• Whether the issues have been resolved

• Your current financial stability

• If you still owe the money

• How much was outstanding at the time of the problem

Specialist lenders exist for people with imperfect credit, and a broker can help you find the right fit.

8. Is now a good time to remortgage?

This depends on your current rate, when your deal ends, and what the market is doing. Many homeowners remortgage to:

• Avoid moving onto a higher standard variable rate

• Secure a better deal

• Release equity

• Reduce monthly payments

It’s usually worth reviewing your options six months before your current deal ends.

9. How long does a mortgage application take?

The timeline varies, but most applications take between two and six weeks. Delays can happen due to:

• Slow document submission

• Complex income

• Valuation issues

• Lender backlogs

Being organised and responsive helps speed things up.

10. What happens if I overpay my mortgage?

Overpaying can reduce your mortgage term and save you interest. Most lenders allow up to 10% overpayment per year on fixed deals, but always check your terms to avoid early repayment charges.

11. Should I use a mortgage broker or go directly to a bank?

A broker can:

• Compare deals across multiple lenders

• Access exclusive rates

• Help with complex situations

• Save you time and stress

• Guide you through the full process

Going direct limits you to one lender’s products. Most buyers prefer the wider choice and support a broker provides.

12. Will missing payments affect my mortgage?

Yes. Missed payments on any credit agreement can impact your credit score and your ability to get a mortgage. If you’re struggling, speaking to a broker early can help you understand your options before things escalate.

Final Thoughts

The mortgage process can feel overwhelming, but understanding the most common questions and the answers lenders are looking for can make the journey much smoother.

If you want personalised advice or help preparing for your application, I’m here to guide you through every step. Book a quick chat with me here.