Straight Answers to Common Mortgage Questions

At Horne Dennison, one thing we’ve noticed recently is that clients are asking very similar questions about mortgages, buy-to-let properties, and borrowing power.

With headlines full of uncertainty, we thought it would be useful to answer some of the most common questions we’re hearing every day.

This is probably the number one question we get asked.

The honest answer is: it depends why you’re buying.

If you’re buying a home to live in long term, then trying to perfectly “time the market” is often impossible. Property markets rise and fall, but your home is first and foremost somewhere to live, not simply an investment.

If you find the right property, can comfortably afford it, and plan to stay there for a number of years, it can still absolutely make sense to buy.

For buy-to-let investors, the thought process is slightly different. The key question becomes:

The days of quickly “flipping” properties for easy gains are far less common now, especially once you factor in stamp duty, renovation costs, materials, and labour.

As with most property decisions, doing the maths properly is key.

Many people still assume lenders will only offer around three to three-and-a-half times their income.

In reality, mortgage lending has become much more flexible in recent years.

Some lenders may offer up to six times income for the right applicant, depending on factors such as:

Every lender assesses affordability differently, which is why speaking to a mortgage adviser early can make a real difference.

While higher borrowing levels are possible, it’s important to remember that the amount a lender is prepared to offer may not always be the amount you feel comfortable borrowing.

If you’re trying to understand how much you may be able to borrow, our previous blog 2% Deposit Mortgages and 6x Income Lending may also help.

No, but it’s something you should discuss with a tax adviser or accountant before proceeding.

Many landlords still purchase buy-to-let properties in their own name, while others use limited companies for tax efficiency reasons.

However, there are trade-offs.

For example:

We explored this topic in more detail in our previous blog, Are Limited Companies the New Norm for Landlords?, which looks at some of the pros and cons landlords should consider before making a decision.

There is no one-size-fits-all answer.

If you’re considering property investment, it’s important to understand both the mortgage implications and the tax implications before making decisions.

Often, yes.

Many people assume that one missed payment or minor issue means they can no longer get a mortgage. In reality, lenders assess credit histories very differently.

We regularly see situations where:

…has affected someone’s credit file without them realising.

Some lenders take a stricter approach than others, while some are much more understanding of minor historic issues.

The important thing is knowing what’s on your credit report before you apply.

Absolutely.

In fact, we’d recommend this as one of the very first things you do when starting your property search.

A good credit report helps:

One service we often recommend is Checkmyfile, which combines information from multiple credit agencies into one report.

It offers a free trial period and provides a very clear overview of your financial history.

Before speaking to a broker, it’s helpful to have:

• Three months’ payslips
• Three months’ bank statements
• Your credit report

The more information you can provide upfront, the smoother the process usually becomes.

Mortgage advice is rarely about finding one “perfect” answer that works for everyone.

The best mortgage solution depends on your goals, your finances, and your long-term plans.

At Horne Dennison, we focus on giving honest, practical advice tailored to individual circumstances, whether you’re buying your first home, reviewing a buy-to-let mortgage, or planning your next property move.

If you’d like to discuss your options, our team is always happy to help.