Mortgage

Getting a Mortgage in London: What You Need to Know

Buying a home in London can feel like a minefield, especially with rising prices and different types of mortgages available. In this guide, we’ll break it all down for you in plain English. Whether you’re a first-time buyer, landlord, or remortgaging, we’ll walk you through what you need to know to make informed decisions and move forward with confidence. We’ll also share expert tips from our team at Mortgage Brokers Near Me, who’ve helped thousands of clients secure mortgages across the capital.

Will Sharman

Jul 21, 2025

First-time buyers discussing mortgage options in London with a broker.

What makes London different when it comes to mortgages?

London is one of the UK’s most expensive areas to buy property, and that changes how you approach your mortgage. The average house price here is more than double the national average. That means higher deposits, stricter affordability checks, and more competition. But the good news? With the right advice and access to the whole market, it’s still very possible to secure a mortgage even on a budget.

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Understand what kind of mortgage suits your situation

When you’re looking to buy in London, choosing the right mortgage type is key. Here’s a quick breakdown:

First-time buyer? You’ll likely want a fixed-rate mortgage so you know what your payments are each month. You can learn more here.
Remortgaging? You may be looking to release equity or get a better rate. A tracker or discounted variable might suit you. Start here.
Looking to invest? A buy-to-let mortgage comes with its own rules. Read more on our Buy-to-Let guide.

And don’t forget: we’re independent, which means we can scan hundreds of lenders to find what actually works for you.a

"A mortgage isn’t just about numbers on paper, it’s about unlocking doors to the next chapter of your life." Will Sharman, Mortgage Brokers Near Me

Know how much you can borrow

In London, where prices are high, it’s important to be realistic. Most lenders will offer up to 4.5 times your annual income, but this can vary. We often help clients structure their application to maximise what they can borrow without overextending.

For example, we recently helped a young couple in Camde, both self-employed get approved for £410,000 by structuring their income documents and advising on the right lender. It made the difference between settling for a flat or getting their dream maisonette.

Don’t underestimate the deposit and fees

A lot of people come to us thinking they need a 10% deposit, but that’s not always true. There are 5% deposit options out there, and some lenders offer family-assisted products if someone is willing to support the application.

On top of the deposit, remember to budget for:

Stamp Duty
Solicitor fees
Valuation and survey costs
Broker fees (if applicable – ours are clearly outlined upfront)

If you’re unsure how to plan for these costs, we’ll go through your budget together and give you a clear picture.

Think about mortgage protection

Buying a home is a big commitment and protecting it is just as important. We always recommend looking into mortgage life cover, income protection, or critical illness cover.

We’ve created a dedicated guide to help you understand your options: Mortgage Life Insurance in Central London

You don’t want to think about the worst happening, but that’s exactly why protection exists.

Consider if a mortgage broker is worth it

Short answer: yes, especially in London. We’ve written a full article about this here: Should I Use a Mortgage Broker in London?

In brief, here’s why it helps:

We have access to deals not available directly to the public
We know which lenders are flexible with income or credit issues
We save you hours of admin by handling everything from quotes to applications

It’s not just about getting a mortgage it’s about getting the right one.

Checklist: What to Do Before Applying for a Mortgage in London

Mortgage Prep Checklist:

Check your credit score (use Experian, TransUnion, or Equifax)
Review your income and spending habits
Gather key documents: ID, proof of income, bank statements, existing debts
Use a mortgage calculator to estimate your affordability
Decide what type of mortgage fits your needs (fixed, tracker, buy-to-let etc.)
Explore schemes you may be eligible for (e.g. Deposit Unlock, Shared Ownership)
Consider mortgage protection options (life cover, income protection, critical illness)
Speak to a broker who can access the full market
Get a mortgage agreement in principle before house hunting
Budget for additional costs: solicitor, Stamp Duty, surveys, removals

Explore schemes that make buying in London easier

From Help to Buy to the First Homes scheme, there are still useful tools available for first-time buyers.

We’ve seen clients get on the ladder with as little as a 5% deposit using schemes like:

Deposit Unlock
Shared Ownership
Guarantor mortgages

The best scheme depends on your personal circumstances. We’ll help you figure out what you’re eligible for and what’s worth it long-term.

Think outside the zone

We get it, everyone wants to live in Zone 1. But if your budget doesn’t stretch that far, don’t stress. We’ve helped buyers find excellent opportunities in places like Sutton, Uxbridge, and even commuter towns just outside the M25.

We’ll show you what your mortgage can buy across different postcodes so you can decide what trade-offs you're willing to make.

Trusted mortgage broker in London supporting clients with home buying decisions.

"You don’t have to figure it all out alone, the right broker makes the process faster, easier and less stressful." Will Sharman, Mortgage Brokers Near Me

How we can help you move forward

At Mortgage Brokers Near Me, we’ve helped over 7,000 clients across the UK many of them right here in London. Whether you’re buying your first flat in Hackney or remortgaging a house in Wimbledon, our goal is to make the process simple, fast, and stress-free.

We’ll:

Review your situation and goals
Recommend the best lenders for your needs
Help with all paperwork and communication
Support you from application to completion

Ready to take the next step? Get a free quote or callback and we’ll talk it through with no pressure.

Frequently Asked Questions

How much deposit do I need to buy in London?

While some lenders offer 5% deposit mortgages, most clients aim for 10–15%. A bigger deposit usually means better rates. We’ve also helped clients use schemes like Deposit Unlock to get started with less.

Can I get a mortgage in London with bad credit?

Yes, it’s possible. We work with lenders that are more flexible when it comes to missed payments or low credit scores. It often depends on how recent or severe the credit issues are.

How long does it take to get a mortgage approved in London?

A mortgage agreement in principle can be done in 24 hours. Full approval usually takes 2–4 weeks depending on the lender, paperwork, and the property type.

Is it worth using a mortgage broker in London?

Absolutely. London mortgages are more complex, and a broker can help you access exclusive deals, understand lender criteria, and manage the whole process for you. We’ve covered this in more detail here.

Can I buy a buy-to-let in London with a mortgage?

Yes, but buy-to-let mortgages have different rules. You’ll usually need a bigger deposit (around 25%) and the rent needs to cover a percentage of the mortgage. Read our Buy-to-Let Guide for London for more.

Do I need mortgage life insurance?

It’s not a legal requirement, but strongly recommended. It protects your home and family if the worst happens. Learn more about Mortgage Protection here.