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Mortgage jargon in plain English. What it means, who it suits and what to watch out for — checked against the rules as they stand today.
From a qualified mortgage broker in Sleaford, Lincolnshire — helping people across England and Wales.
Have the money conversation early: who pays what, and what happens if things change. It's far easier at the start.
| Joint tenants | Tenants in common | |
|---|---|---|
| Who owns what | You both own it all | You each own a share |
| Shares | Always equal | Can be unequal, e.g. 70/30 |
| If one of you dies | Passes to the other | Goes as your will says |
Yes. Joint tenants can switch to tenants in common by "severing" the joint tenancy, and you can go the other way too. Your conveyancer can handle it.
Property ownership works differently in Scotland. This is general information, not legal advice.
Tenants in common? Put a declaration of trust in place and make sure you both have a will.
| Type | Payments | Suits |
|---|---|---|
| Fixed (2, 3, 5 or 10 years) | Same every month | Budgeters who want certainty |
| Tracker | Move with base rate | People who can ride out a rise |
| Discount | A set amount below the SVR | Short-term flexibility |
| Standard variable (SVR) | Lender decides | Usually nobody — it's what you fall onto |
| Offset | Savings reduce the interest | People with healthy savings balances |
The Bank of England held base rate at 3.75% on 17 September 2026, with three of the nine committee members voting for a rise. The next decision is due on 5 November 2026. Fixed rates are priced on what markets expect next, so they can move before base rate does.
Don't pick a rate. Pick the total cost over the deal, and how long you need certainty for.
It isn't a mortgage offer. The lender still needs your full application, documents and a valuation of the property. That's why getting the DIP from a lender that actually suits you matters — a DIP from the wrong lender can fall over later.
They're all the same thing. Lenders just call it different names.
Get your DIP before you view. Agents ask for it, and it stops you falling for homes you can't buy.
Help to Buy has closed to new buyers. If you already have a Help to Buy equity loan, see remortgaging and paying it off.
Talk to us before you pay a reservation fee. That 28-day exchange clock starts fast.
| Regulated | Unregulated | |
|---|---|---|
| Used for | A home you or your family live in or will live in | Investment and business property |
| Maximum term | 12 months | Often up to 24 months |
| FCA protection | Yes | Limited |
The lender will want to know how you'll repay: the sale of a property, a remortgage once works are done, or another funding source. If the plan slips, costs build quickly.
Never take a bridge without a plan B for getting out of it.
| Approach | What they look at |
|---|---|
| Like an employee | Recent CIS statements and bank statements, using your gross pay |
| Like self-employed | SA302s and tax year overviews, using your net profit |
Lenders that use your gross CIS pay can lend considerably more than ones that only look at profit after expenses. Picking the right lender matters.
New CIS rules mainly affect contractors: tighter checks on subcontractors, tougher penalties for fraud, and gross payment status that can be removed immediately (with a five-year wait to reapply). If you hold gross status, keep your compliance spotless.
Keep every monthly CIS statement. To a lender, they are your payslips.
| Inside IR35 | Outside IR35 | |
|---|---|---|
| Tax | PAYE and NI on your fee | Through your own limited company |
| Who decides | The client (if medium or large) | The client (if medium or large) |
| Typical setup | Umbrella company or agency payroll | Limited company |
An umbrella company employs you, invoices the agency, and pays you through PAYE. From April 2026, the agency (or the client, if there's no agency) is responsible for the umbrella's PAYE. That's meant to stamp out tax-avoidance schemes, so check your payslips add up.
A day-rate lender can make a big difference to what you can borrow. Don't accept a figure based only on your company accounts.
| Lifetime mortgage | Home reversion | |
|---|---|---|
| Minimum age | 55 | Usually 60–65 |
| Ownership | You keep 100% | You sell a share |
| Cost | Interest, usually rolled up | You get below market value for the share |
Plans that meet Equity Release Council standards include:
Equity release needs specialist advice. John holds the CeRER equity release qualification, and we'll always talk through the alternatives first.
Bring your family into the conversation early. It's their inheritance too.
Gross yield = annual rent ÷ price × 100. A £180,000 house let at £1,000 a month earns £12,000 a year, so the gross yield is 6.7%.
Net yield takes off running costs — letting fees, insurance, repairs, empty months and service charges. If those come to £3,000, the net yield is 5%.
Buy-to-let lenders check the rent covers the mortgage interest by a margin, often 125% for basic-rate taxpayers and 145% for higher-rate taxpayers, at a stress rate. Many need a 25% deposit.
| Change | When |
|---|---|
| Renters' Rights Act: Section 21 abolished, rolling tenancies, one rent rise a year | From 1 May 2026 |
| Making Tax Digital for landlords with over £50,000 of income | From April 2026 |
| Property income tax rates rise to 22%, 42% and 47% | From April 2027 |
| 5% stamp duty surcharge on additional homes | Since October 2024 |
Mortgage interest on personally owned lets only gets a basic-rate tax credit, which is why many landlords look at buying through a limited company. That's a tax decision, so get an accountant's view as well as ours.
Run the numbers on net yield after tax, not on gross rent. That's where buy-to-let succeeds or fails now.
| Rule | Detail |
|---|---|
| Who can open | Ages 18–39 |
| Pay in | Up to £4,000 a year, until you're 50 |
| Bonus | 25% — up to £1,000 a year |
| Property price cap | £450,000 |
| Account age | Open at least 12 months before you use it |
| Other withdrawals | 25% charge (you lose more than the bonus) |
The government consulted on a replacement, which closed on 18 August 2026. Proposals include no upper age limit, the bonus paid when you buy rather than as you save, and no withdrawal penalty. Contribution limits, the bonus rate and the price cap haven't been confirmed. Existing Lifetime ISAs carry on under the current rules for now.
They closed to new savers in 2019. You can pay in until November 2029 and must claim the bonus by November 2030, on homes up to £250,000 (£450,000 in London).
From April 2027 the cash ISA limit falls to £12,000 for under-65s, within the £20,000 overall ISA allowance.
Check the £450,000 cap before you offer. Go over it and you lose the bonus and pay the 25% charge.
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This is general information, not personal advice. Rules, rates and lender criteria change, so we'll always check your own situation before you make a decision. Your home may be repossessed if you do not keep up repayments on your mortgage.