The ten little mortgage tips that could make a big difference
One of the things I love most about being a mortgage broker is giving advice that really makes a difference to my clients and unlocks more options for them. Sometimes it can be the simplest of suggestions that makes the biggest difference.
If you’ve already started your mortgage search you’re probably familiar with the usual advice for first-time buyers, the need to be aware of your credit, and the different types of mortgages that are available, etc.
But what about the smaller tips that aren’t mentioned as much, the ones that might seem a bit boring or innocuous?
Here are my top 10 “little mortgage tips” that could make a big difference to your next move.
1. Register to vote
I’m starting with a super-simple tip first, which is to check you’re registered to vote in the UK.
“But….”, I hear you say, “What on earth does my ability to share my political point of view have to do with my mortgage?”
It’s all to do with how banks assess risk before lending money. All lenders run a credit check on new borrowers which tells them about your history with credit. When you’re not registered to vote, credit agencies have one less way to validate who you are.
It’s one of the most frustrating reasons to be rejected for a mortgage because it’s so easily avoided. But it’s amazing how few people know this and how often it catches people out.
If you want more detail about credit reports and how to find out your credit score, we’ve covered this in more detail in our first-time buyer blog and in our poor credit blog.
2. Think about the date you want your mortgage payment to come out of your account
This is a simple admin consideration you can set up when your loan is finalised. To do this, you need to be familiar with your monthly outgoings and when they happen. For example, there is no point in asking your bank to take your mortgage payment on the 8th of the month if you don’t get paid until the 16th and have existing loan repayments set for the 10th.
If you have plenty of buffer in your account this might not be so relevant to you, but paying a little attention to your cash flow can ease pressure on your current account.
3. Remember to check early repayment charges on your existing mortgage
Early repayment charges (ERCs) are a pain if you’re unaware of them before taking your mortgage out. Any mortgage broker worth their salt should make ERCs very clear when talking you through your options.
ERCs are in place so lenders can recoup their lost interest payments if you decide to pay off or end your mortgage early. In practice, they mean you are charged an exit fee that commonly ranges from 1% to 5% of the remaining loan (but can be up to 10%). Not all mortgages have ERCs, but it’s worth checking before choosing your lender.
They are more likely to be applied to fixed-rate mortgages, but you’ll also find them attached to other mortgages such as those with introductory rates. They can be avoided by planning ahead (e.g. not choosing a 5-year fix if you plan to move in 2 years) and either repaying or porting your mortgage at the right time. Typically, you’ll pay a premium for more flexible mortgages, but a mortgage broker will advise you on all of this before you apply so you’re not trapped in a mortgage you can’t port or change.
4. Keep an eye on the Bank of England base rate. It could affect future rates
While mortgage rates are impacted by more than just the BoE base rate (e.g. inflation, political events, swap rates etc), its influence is still significant, so it’s worth keeping an eye on how it’s tracking.
This is especially important if you’re considering a variable-rate mortgage. These track the base rate so a 0.5% increase in base rate will cause a 0.5% increase in your mortgage rate.
If your fixed rate is coming to an end soon the base rate will also affect the SVR (Standard Variable Rate) which your mortgage reverts to at the end of the fix. It will also affect the fixed rates that are available if you look to remortgage.
Especially if you are considering a variable rate, work out if you could still afford your monthly repayments if interest rates rose by, say, 2%. When you get a mortgage quote (otherwise known as an illustration) they will tell you what your monthly payments would be at different rates, as well as what they would be on the current SVR. Your mortgage broker will also talk you through this.
The base rate has risen by 4% in the past 3 years (at time of writing – March 2025 – the base rate is 4.5%) after 12 years of unprecedently low rates. Although forecasts suggest it’s unlikely to rise by the same amount again, it’s always good to be prepared.
5. Don’t assume 65 is the retirement age
This is something I often discuss with clients because, in my experience, people haven’t thought about their retirement intentions. When asked, most people say they plan to “retire at 65” but this is often a stock answer because it’s what their parents did or they “assume” it’s the right answer.
In reality, they probably have no intention of retiring at 65; the State retirement age is currently 67 or 68 (depending on when you were born) and many people choose to work until they’re well into their 70s.
Why is this important? Because it affects the term of your mortgage which impacts your monthly payments. In theory, a 35-year-old could take out a 40-year mortgage if they pay into a pension and don’t plan to retire until they’re 75.
Also, If you applied for your mortgage a while ago when you planned to retire at 65 your mortgage term will be limited to the year you turn 65. If you now plan to retire at 70 it pays to let your lender know. Adding another 5 years to the term of your mortgage could reduce your monthly payments or give you more options to remortgage in the future. But remember you’ll pay more overall because you’ll be paying interest for another 5 years.
6. Remember the cost of moving house is more than just your mortgage payments
If you’re a seasoned house-mover you’ll be aware of this, but I’ve helped many first-time buyers for whom this has taken them by surprise. When you’re working out if you can afford to get on the property ladder, it’s common to only think about the deposit you need and the ongoing monthly repayments.
In fact, you need to consider a range of costs – stamp duty, removal costs, buildings & contents insurance, legal fees, surveying costs, etc. We’ve written in more detail about this in our first-time buyers blog which can be found here.
From April 2025 the cost of buying a house will be higher due to a significant reduction in stamp duty thresholds. There’s an excellent article from the Home Owners Alliance that’s been updated in light of these changes, and breaks down the costs you might incur when moving home.
7. Plan ahead as much as you can – especially when you’re self-employed
There is a lot to be said for planning ahead especially if…:
- …you’re remortgaging. It’s advisable to start locking in mortgage deals 4-6 months in advance (especially if the interest rates might increase)
- …you’re self-employed. You will typically need to provide lenders with 2 years of certified accounts/ tax documents. Having a few years to get your accounts in good order makes the application process less laborious. If you currently have a mortgage, a Product Transfer can be your friend.
- …you’re planning to fix your mortgage. It’s valuable to think about your plans and whether anything will impact where you live (e.g. a growing family, a change in job location, etc). Plans to move home might affect the length of time you fix your rate (see the ERC section in point 3 above).
Let’s face it though, planning ahead is not always possible. Life gets in the way and carefully made plans can often change at the drop of a hat. Volatile housing markets and uncertain politics can also make planning hard. As mortgage brokers, we’re here to help ask the right questions to make planning a little easier.
8. Look into house-buying schemes
If you’re a first-time buyer, you’re probably as much daunted as you are excited by climbing onto the housing ladder. You have an advantage over existing homeowners though, and that’s your potential eligibility for government house-buying schemes.
These have been introduced to encourage more buyers into the housing market. You can find out more about what is currently available here. These are subject to change (especially with the recent change of government) but a mortgage broker will also have the latest information.
It’s not JUST first-time buyers that can benefit from schemes. Many new housing developments have schemes designed to reduce the cost of moving (e.g. paying stamp duty, exchanging with your existing property, etc). It’s worth checking locally to see what might be available near you.
9. Include all your income sources when you apply for your mortgage
Try to think more broadly than your salary or wage when proving your income. Do you have any regular commissions, reliable bonuses, dividend payments, or benefits that top up your earnings? If you’re in retirement, what is your private and state pension? If you’re aged over 55, then knowing your pension predictions for the latter years of your mortgage term is also very helpful.
When you work with us, we’ll ask about all your income so you don’t miss anything out, and so we can broaden the lending options available to you.
10. There are mortgage deals available that you might not know about
If they’re not working with a mortgage broker, most people start their mortgage search by visiting the high street banks or searching on a comparison site. This yields a good range of mortgages, but it won’t be the full extent of the market.
This is where working with a mortgage broker can be worth your while. We sometimes have access to deals that aren’t available when you go directly to the lender. We also know the right questions to ask lenders to make sure you’re getting the broadest set of options.
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I hope one of our 10 small-but-mighty tips has sparked a thought as you plan the next step of your mortgage journey. If you have any questions about the implications of these tips please get in touch for a no-obligation chat with us. We look forward to hearing from you.
How can Downton Mortgages & Financial Services help?
I set up Downton Mortgages & Financial Services to give people confidence in their financial decisions. We do that by making your options clear and easy to understand. There are no silly questions, and we are on hand to help every step of the way from research through to application.
For more information about our services look at our website here or alternatively, get in touch for a no-obligation chat about your circumstances and house-buying plans.
Other blogs we’ve written on related topics
First-time buyers – getting clear on monthly outgoings
First-time buyers – why it’s important to know your credit score?
5 essential questions for first-time buyers
Can I get a first-time mortgage if I have bad credit?
Am I too old to get a mortgage?
Why do I need a mortgage broker?
Important Information
The information contained within was correct at the time of publication but is subject to change (March 2025).
Please note for all mortgage products, terms and conditions apply. This information is a summary only. You will receive full documentation upon application which sets out the terms, conditions and limitations of lending provided.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.