UK Mortgage Advice 2026 | First-Time Buyers, Remortgages & Self-Employed Explained

Introduction

Host:
Hello again, welcome to our podcast. Today we have a very special guest — David Cliff, who has more than 25 years of experience in the mortgage industry. He also helped arrange my first mortgage, so he brings a huge amount of expertise.

Welcome, David.

David:
Thank you very much. Thanks for having me.

Current Mortgage Market Conditions

Rates Changing Frequently

Host:
Right now, mortgage rates seem to be changing constantly. What’s happening in the market?

David:
It’s been a crazy few weeks, honestly. Rates are changing daily, and lenders are sometimes withdrawing products within just 2–3 hours. It’s been very busy and we’ve been working long hours.

Advice for Existing Borrowers & Remortgages

Remortgage Early

Host:
What should borrowers do in the current market, especially existing homeowners?

David:
If you’re remortgaging, start early. Usually, you can secure a new deal up to 6 months before your current mortgage ends.

Because rates are changing so often, we recommend reviewing your mortgage around 6 months early. Your broker should ideally stay on top of this and contact you in advance.

What If Rates Improve Later?

Host:
What happens if someone secures a rate now, but better rates become available 3 months later?

David:
With most lenders, you can switch to a lower rate right up until about 1–2 weeks before completion.

That’s why it’s important to work with a proactive broker who monitors the market and updates your application if rates improve.

Advice for First-Time Buyers

Should Buyers Wait?

Host:
What advice would you give to first-time buyers? Should they wait or buy now?

David:
It really depends on personal circumstances, but generally, if you need or want to move, I wouldn’t delay.

Everything is relative:

• Rates might go up slightly
• But if rates fall after you secure a deal, you can often switch before completion

So if the property is right and affordable, I’d still move now.

Mortgages for Self-Employed Applicants

Can You Get a Mortgage with 1 Year of Accounts?

Host:
You specialize in self-employed mortgages. Can lenders still approve mortgages with only 1 year of accounts?

David:
Yes, absolutely.

Most lenders prefer:

• 2 years of accounts
• and often average the income

However:

• Some high street lenders accept 1 year
• Many smaller building societies are flexible too

It also depends on your work history.

Example:

• Employed plumber → self-employed plumber = easier
• Bus driver → self-employed plumber = more difficult

Lenders look at industry experience as well as accounts.

SA302s & Limited Companies

Host:
Do lenders only use SA302s and tax calculations for self-employed applicants?

David:
Not always.

Sole Traders

Most lenders use:

• SA302s
• Tax year overviews

Limited Companies

Many lenders use:

• Salary + dividends

But some lenders also consider:

• Net company profit
• Retained profits

This can significantly increase borrowing potential if money is left in the business.

Retained Profit & Borrowing Power

Host:
That’s important because many business owners leave money in the company for tax efficiency.

David:
Exactly. If the profits belong to the business owner and remain in the company, some lenders will still consider them as income for affordability purposes.

Mortgages for Contractors

Using Day Rates Instead of Accounts

Host:
What about contractors who earn a daily rate?

David:
Many lenders now assess contractors based on their day rate rather than traditional accounts.

Typically, they calculate income like this:

• Day rate × 5 days
• × 48 weeks (sometimes 46–48 weeks)

That annualized figure is then used for affordability calculations.

This is especially common for IT contractors.

Affordability & Borrowing Multiples

Can You Borrow More Than 4.5x Income?

Host:
People often think they can only borrow 4.5 times their income. Is that true?

David:
That’s the general rule, but there are exceptions.

Factors that can increase borrowing include:

• Larger deposits
• Higher income
• Strong credit profile

Some lenders may offer:

• 5x income
• 5.5x income

This is why speaking to a broker is important.

Steps for Self-Employed First-Time Buyers

Typical Mortgage Process

Host:
What are the normal steps for a self-employed first-time buyer?

David:

Step 1 — Speak to a Broker

Discuss:

• income
• affordability
• deposit
• credit history

Step 2 — Gather Documents

Usually required:

• Tax returns / SA302s
• Business bank statements
• ID & proof of address
• Proof of deposit

Step 3 — Affordability Assessment

The broker reviews:

• income
• expenses
• commitments

Step 4 — Agreement in Principle (AIP)

Once approved, buyers can start property searching confidently.

Broker vs Going Direct to a Bank

Why Use a Mortgage Broker?

Host:
What’s the advantage of using a broker instead of going directly to a bank?

David:
A broker can search the whole market.

If you go directly to a bank:

• They only offer their own products

A broker can compare:

• HSBC
• NatWest
• Santander
• and many others

Since rates change daily, brokers can help find the best available option at the time.

Fixed vs Variable Rates

Which Is Better Right Now?

Host:
Should people choose fixed or variable rates in the current market?

David:
There’s no universal answer. It depends entirely on:

• personal circumstances
• risk tolerance
• future plans

At the moment though, because markets expect rates could rise further, many clients are choosing fixed rates.

2-Year vs 5-Year Fixed Deals

Which One Makes More Sense?

Host:
Another common question: 2-year or 5-year fixed?

David:
Again, it depends on future plans.

A 5-Year Fixed Might Suit:

• Someone buying a long-term home
• Someone wanting payment certainty
• Cautious borrowers

A 2-Year Fixed Might Suit:

• Buyers expecting to move soon
• People expecting circumstances to change within 2–3 years

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Closing Remarks

Host:
David has a huge amount of experience, especially helping self-employed clients. I still go to him for advice myself.

If you need mortgage advice, David and his company, Greenstone Mortgages, are always happy to help.

Thank you for joining us today, David.

David:
Thanks very much. Appreciate it. Take care.