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.
Jul 21, 2025
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.
When you’re looking to buy in London, choosing the right mortgage type is key. Here’s a quick breakdown:
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
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.
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:
If you’re unsure how to plan for these costs, we’ll go through your budget together and give you a clear picture.
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.
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:
It’s not just about getting a mortgage it’s about getting the right one.
Mortgage Prep Checklist:
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:
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.
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.
"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
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:
Ready to take the next step? Get a free quote or callback and we’ll talk it through with no pressure.
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.
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.
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.
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.
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.
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.
Life insurance doesn’t have one fixed cost. The price depends on your age, how much cover you want, your health, and whether you have pre-existing conditions. The earlier you start, the cheaper it usually is. At MBNM, we set policies up properly so your family can count on them when it matters most.
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If you are moving home, you may be able to take your mortgage with you, but it is not guaranteed. Most UK mortgages are portable, however you still have to reapply, meet current lending rules, and get the lender’s approval. Porting keeps your existing rate, but extra borrowing usually goes on a new deal and early repayment charges can still apply in some cases. Before deciding, compare porting against switching mortgages, as changing lender can sometimes be cheaper and simpler long term.
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If you’re buying your council home through Right to Buy, the discount can sometimes act like your deposit, which means you might not need to save a big cash deposit. But “no deposit” does not mean “guaranteed”. Lenders still check affordability, credit history, the property type, and whether the valuation stacks up. The fastest way to avoid getting messed about is to get the numbers checked properly before you apply, because the wrong lender or the wrong application order can cost you months. Your home may be repossessed if you do not keep up repayments on your mortgage.
Read ArticleIf you’re buying, moving, or remortgaging, speak with a MBNM adviser and get clear guidance on what’s realistically available to you, before you commit to anything.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority.
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Mortgage Brokers Near Me LTD are registered in England and Wales with company number 15189091.
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