What is an Income Booster Mortgage?

by First-Time BuyersMortgage Advice 101Remortgage

Income Booster Mortgages Explained: What Borrowers Need to Know

For many borrowers, especially first-time buyers, affordability can be one of the biggest barriers to buying a home. In response, some mortgage lenders offer what are commonly referred to as “Income Booster” mortgages.

This guide explains what an income booster mortgage is, how it works, and what borrowers should understand before considering this type of lending.

“Income Booster” refers to a Joint Borrower, Sole Proprietor (JBSP)-style mortgage where a supporter’s income is used alongside the applicant’s income to increase borrowing capacity, without the supporter becoming an owner of the property.

What Is an Income Booster Mortgage?

An Income Booster mortgage — sometimes also referred to as a Joint Borrower, Sole Proprietor (JBSP) mortgage — is a type of mortgage application structure where family members are added to the mortgage application so that their incomes are included in the affordability assessment, even though they do not become legal owners of the property.

Key Features:

✅ Additional party’s income is included in the calculation to potentially increase how much can be borrowed.
✅ The supporter is jointly responsible for repayments, even though they are not on the property title.
✅ The applicant can remain the sole legal owner of the property.
✅ Supporting parties usually must receive independent legal advice and meet the lender’s affordability and credit criteria.

This structure can help applicants — especially first-time buyers — meet lenders’ affordability requirements when their own income alone would not support the level of borrowing needed.

How It Works

Instead of a standard mortgage application where only the borrower’s income is considered:

  • A parent, close family member can be added to the application as a “booster” (or supporting applicant). Skipton Building Society

  • The lender adds all incomes together when calculating how much the household may be able to borrow.

  • The primary applicant remains the legal owner, while the booster is legally responsible for the mortgage debt if repayments are not met.

This is different from:

  • A gifted deposit — where money is given but the supporter isn’t on the mortgage, and

  • A joint owner mortgage — where everyone on the mortgage is also an owner of the property.

Example (Illustrative Only)

Suppose a first-time buyer earns £36,000 a year. On their own, a lender might allow borrowing up to a certain amount based on that income and the lender’s multiples.

If a parent with a £40,000 income is added as an income booster, their income may be included in the affordability assessment — potentially increasing the amount the applicant may be able to borrow.

Importantly, this doesn’t guarantee approval — all parties must satisfy affordability, credit checks, and lender criteria.

Risks and Considerations

Any income booster arrangement involves important risks and responsibilities:

  • The supporting party is jointly responsible for mortgage repayments, which can affect their future borrowing capacity and credit profile.

  • It may limit options if, at a later date, the primary borrower wants to remove the supporter or remortgage.

  • Independent legal advice is typically required to ensure everyone understands the implications.

Because this type of mortgage involves multiple incomes and legal responsibilities, it’s essential to get professional mortgage and legal advice before proceeding.

Sources & Credits

Information referenced in this article has been sourced from publicly available lender materials, including:

Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.

Self-Employed Mortgage Guide

by First-Time BuyersMortgage Advice 101Remortgage

Self Employed Mortgage Guide

You can get a mortgage if you are self-employed, but you must provide more documentation to prove your income stability compared to someone on a standard PAYE salary. Lenders need clear evidence that your earnings are consistent and sustainable.

Lets understand what does being Self-Employed Mean?

Mortgage lenders usually treat applicants as self-employed if they work for themselves rather than receiving PAYE income. How lenders assess self-employed income varies by lender and depends on their specific criteria.

As a self-employed person, you are generally responsible for:

  • Finding your own work or clients

  • Paying your own tax and National Insurance

  • Keeping accurate records of income and expenses

  • Submitting a Self Assessment tax return to HMRC

Who Counts as Self-Employed for Mortgage Purposes?

Lenders consider more than just your job title. You may be classified as self-employed if you are:

  • A sole trader

  • A partner in a business partnership

  • A company director receiving income through salary and/or dividends

  • A contractor or freelancer

  • A professional working independently, such as a tradesperson, consultant, or creative

Your mortgage assessment depends on how you earn your income and how you can evidence it, not just how you describe yourself.

Each lender may treat different types of self-employed income differently.

Self-Employed and Mortgages

Being self-employed does not prevent you from getting a mortgage, but lenders usually apply different rules. They typically require:

  • A history of trading

  • Proof of income (accounts or tax calculations)

  • Evidence that your earnings are consistent and sustainable

Mortgage lending is always subject to affordability, credit status and lender criteria.

How Lenders Assess Self-Employed Income for Mortgage Applications

For mortgage purposes, how lenders assess an applicant’s income often depends on

  • the nature of their role,
  • level of ownership or control,
  • how income is received

 rather than job title alone.

Applicants with a significant ownership interest, those receiving dividends, profit share, or business profits, or those trading as sole traders or partners are commonly treated as self-employed, even if they also receive PAYE income.

In these cases, lenders typically require a history of trading and supporting evidence such as tax calculations, tax year overviews, or finalised accounts, usually covering up to two years, although some lenders may consider shorter trading histories.

Where an applicant is paid solely via PAYE, has limited or no ownership, and does not rely on business profits, lenders may assess them as employed, with income evidenced through payslips.

The exact treatment and documentation requirements can vary between lenders and are always subject to individual lending criteria and affordability assessment.

Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.

Interest Rate Changes

by Buy-To-LetFirst-Time BuyersMortgage Advice 101Remortgage

How Interest Rate Changes Affect Your Mortgage

Interest rates are one of the biggest factors influencing the cost of borrowing in the UK. When the Bank of England base rate changes, it can directly affect mortgages — whether you’re a homeowner looking to remortgage or a first-time buyer planning your first step onto the property ladder.

Understanding "How Interest Rate Changes Affect Your Mortgage" can help you make more informed decisions about your mortgage.

The Bank of England base rate is the rate banks and building societies pay when they borrow money. Lenders then use it as a benchmark for setting their own interest rates, including mortgages.

  • When the base rate rises: Mortgage repayments often increase.

  • When the base rate falls: Borrowing typically becomes cheaper, easing repayment pressure for some borrowers.

How Rate Changes Affect Different Mortgages

Not all mortgages respond to rate changes in the same way. Here’s how the most common types are affected:

Fixed-Rate Mortgages

  • Your monthly repayments stay the same for the duration of your fixed term.

  • This provides certainty and protection from rising rates during the fixed period.

  • However, when your deal ends, you may be moved to your lender’s Standard Variable Rate (SVR), which is often higher and may change in line with interest rate movements.

Tracker Mortgages

  • These follow the Bank of England base rate  directly, plus a set percentage.

  • If the base rate rises, your repayments rise by the same amount; if it falls, your repayments also fall.

  • This means your payments can fluctuate more often.

Standard Variable Rate (SVR) Mortgages

  • This is the default rate set by your lender once your initial deal ends.

  • SVRs often move in line with changes in the base rate, but the lender has full discretion.

  • Payments can be unpredictable, and SVRs are usually higher than introductory deals.

Discount Mortgages

  • These are linked to the lender’s SVR, offering a discount (e.g., “SVR minus 1%”).

  • While you benefit from lower rates compared to the SVR, your payments will still move up or down if the SVR changes.

What This Means for You

If you’re on a tracker or discount deal: Expect your repayments to change whenever the base rate moves.

If you’re on your lender’s SVR: Your payments could go up or down at your lender’s discretion, often in line with market conditions.

If you’re on a fixed-rate deal: You’re shielded from immediate changes, but it’s important to prepare for what happens when your fixed term ends.

Practical Steps You Can Take

Review your mortgage regularly to ensure it still meets your needs.

Seek professional mortgage advice to understand how changes may affect you and to explore suitable alternatives.

Budget with flexibility so you’re prepared for potential increases in repayments.

Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.

Fixed rate vs. Tracker Mortgage?

by Buy-To-LetFirst-Time BuyersMortgage Advice 101Remortgage

Fixed rate vs. Tracker Mortgage?

When considering a mortgage, you may hear terms like “fixed-rate” and “tracker mortgage.” Understanding the basics of Fixed vs. Tracker Mortgages can help you have a more informed discussion with a qualified mortgage adviser.

What Is a Fixed-Rate Mortgage?

A fixed-rate mortgage is where your interest rate stays the same for a set period — usually 2, 3, 5, or sometimes even 10 years.

Key Benefits:

  • Predictable payments – Your monthly payments stay the same during the fixed term.

  • Easier budgeting – Knowing what you’ll pay each month can help you plan your finances.

  • Protection from rising rates – If the Bank of England base rate rises, your payments will not change during your fixed term.

Things to Be Aware Of:

  • Early repayment charges (ERCs) – If you repay or switch before the end of the fixed period, you may face a fee.

  • Limited benefit if rates fall – If interest rates go down, you won’t benefit from lower payments until your fixed period ends.

  • Reversion to standard variable rate (SVR) – At the end of the fixed term, your mortgage will usually move to your lender’s SVR, which is often higher.

What Is a Tracker Mortgage?

A tracker mortgage is a type of variable-rate mortgage that moves in line with the Bank of England base rate, plus a set margin charged by your lender.

Key Benefits:

  • Potential for lower payments – If the base rate falls, your monthly payments usually go down.
  • Flexibility – Some tracker deals come with no ERCs, which could allow you to switch deals or repay early without penalty.
  • Transparency – You always know how your rate is calculated (base rate + margin).

Things to Be Aware Of:

  • Payments can rise – If the base rate goes up, so will your monthly payments.
  • Less predictable – Your costs can fluctuate, which can make budgeting harder.
  • Margin stays the same – Even if the base rate drops to 0%, you’ll still pay the lender’s margin.

Compare Fixed vs. Tracker Mortgages

Fixed-Rate Mortgage

A fixed-rate mortgage gives you stability and peace of mind.

  • Interest rate: Stays the same for the entire fixed term

  • Monthly payments: Predictable and unchanged

  • Best for: People who want certainty and easier budgeting

  • Early repayment charges: Usually apply during the fixed period

  • If interest rates fall: Your rate stays the same

  • If interest rates rise: No impact during the fixed term

Tracker Mortgage

A tracker mortgage follows changes in the Bank of England base rate.

  • Interest rate: Moves up or down with the base rate

  • Monthly payments: Can increase or decrease

  • Best for: People comfortable with payment fluctuations

  • Early repayment charges: May not apply (depends on the lender and product)

  • If interest rates fall: Payments may reduce

  • If interest rates rise: Payments will increase

Which One Might Suit You?

Whether a fixed-rate or tracker mortgage is suitable will depend on factors such as:

  • How important it is for you to have predictable monthly payments.

  • Your attitude to risk and whether you are comfortable with possible rate increases.

  • Your future plans, such as moving home or remortgaging during the term.

Remember, there is no one-size-fits-all answer — a qualified mortgage adviser can help you explore which type of deal could work for your circumstances. What Is a Fixed rate vs. Tracker Mortgage?

Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.

Importance of Getting Pre-Approved (“DIP” or “AIP”)

by Buy-To-LetFirst-Time BuyersRemortgage

Getting Pre-Approved (“DIP” or “AIP”)?

Understand the Importance of Getting Pre-Approved (“DIP” or “AIP”).

A mortgage pre-approval, sometimes referred to as a DIP or AIP, is an initial assessment from a lender. They will review:

  • Your income (e.g. salary, self-employment earnings)

  • Your outgoings (loans, credit cards, commitments)

  • Your credit history

Based on this, they provide a guide amount that you may be able to borrow.

Importance of Getting Pre-Approved (“DIP” or “AIP”) while buying a home can feel like a big step, and one of the first things you may hear about is getting “pre-approved” for a mortgage — also known as a Decision in Principle (DIP) or Agreement in Principle (AIP).

Getting a DIP/AIP is not a guarantee you will get a mortgage, but it can be a valuable early step to help you understand how much you may be able to borrow and show sellers you are a serious buyer.

Why Getting a Pre-Approval (DIP/AIP) Matters

  1.  Helps You Set a Clear Budget - Knowing your likely borrowing range allows you to focus your property search on realistic price points — saving time and avoiding disappointment.
  2. Strengthens Your Position With Sellers - Estate agents and sellers often ask if you have a DIP/AIP. Having one shows you are financially prepared and ready to proceed, which may make your offer more attractive.
  3. Speeds Up the Process - Having a pre-approval means that some of the checks have already been carried out. This may help speed up your full mortgage application once you find a property.
  4. Identifies Issues Early - If there are issues with credit history or affordability, they can often be addressed before you commit to a full mortgage application.

Why Sellers and Estate Agents Value a DIP/AIP

In today’s property market, having a Decision in Principle (DIP) or Agreement in Principle (AIP) can make you stand out as a buyer. Here’s why:

  • Shows You’re a Serious Buyer – A DIP/AIP demonstrates that you’ve already spoken to a lender or adviser and taken steps to check your affordability.

  • Gives Sellers Confidence – Sellers are more likely to accept your offer if they know you are likely to secure finance.

  • Helps Estate Agents Progress Sales – Agents want transactions to move smoothly. Having a DIP/AIP can reduce the risk of delays later in the process.

  • May Speed Up the Offer Process – If multiple buyers are interested, having a DIP/AIP can put you in a stronger position compared to someone who hasn’t started their mortgage checks.

Step-by-Step: How Pre-Approval (DIP/AIP) Works

Speak to a Mortgage Adviser
Your adviser will collect key financial information and recommend suitable lenders.

Provide Basic Documents
You’ll typically need:

  • Payslips or self-employed accounts
  • Bank statements
  • Details of loans, credit cards, or commitments
  • Proof of ID (passport or driving licence)

Lender Assessment
The lender runs an affordability check and may carry out a soft or hard credit check.

Receive Your DIP/AIP
If approved, you’ll receive a document confirming the maximum amount you may be able to borrow. Most DIPs/AIPs are valid for 30–90 days.

Use It When Making Offers
Showing your DIP/AIP to estate agents helps demonstrate you are a serious buyer.

Things to Keep in Mind

  • It’s Not Binding – A DIP/AIP does not guarantee a mortgage offer.

  • Circumstances Can Change – If your income, outgoings, or credit record changes, the amount you can borrow may also change.

  • Credit Checks – Always confirm if the lender will run a soft or hard search. Too many hard checks in a short time can affect your credit profile.

  • Industry Trend: Many UK buyers now seek a DIP/AIP before starting their property search because estate agents increasingly request one before booking viewings.

Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.

Mortgage: How Much Could I Borrow?

by Buy-To-LetFirst-Time BuyersRemortgage

Mortgage: How Much Could I Borrow?

When applying for a mortgage, lenders assess how much they are willing to lend based on a range of factors, including your income, regular outgoings, and overall financial situation. The result is an estimate of how much you may be able to borrow — but it’s not a guarantee of approval.

Using a Mortgage Calculator

A mortgage calculator can help you estimate your borrowing capacity by taking into account:

  • Your annual income (and your partner’s, if applicable)

  • Monthly expenses and existing financial commitments

  • Deposit amount

  • Preferred loan term

  • Estimated interest rate

Please use our friendly mortgage calculator - Mortgage Calculator 

The calculator provides an illustration of what your potential mortgage repayments might look like.
Please note: the figures are for illustrative purposes only and do not constitute financial advice or a mortgage offer.

What This Means for You

When deciding how much to lend, mortgage providers will typically assess:

  • Your income and employment stability

  • Existing credit commitments

  • Credit history and score

  • Living costs and dependents

  • The value and type of property you wish to buy

Each lender uses its own affordability criteria, so the actual amount you can borrow may vary.

What Lenders Consider

  • Review your mortgage regularly to ensure it still meets your needs.

  • Seek professional mortgage advice to understand how changes may affect you and to explore suitable alternatives.

  • Budget with flexibility so you’re prepared for potential increases in repayments.

Next Steps
  • To get a clearer picture of your borrowing potential use our Mortgage Calculator to get an initial estimate of how much you could borrow.
  • Drop us a note using our Contact Us form or call us directly on 0203 105 6501 to discuss your situation.
  • One of our qualified mortgage advisers will be happy to help you explore your options and guide you through the next steps.
Final Thoughts

A mortgage is one of the biggest financial commitments you’ll ever make, so it’s important to understand how it works before you proceed.

Always speak to a qualified mortgage adviser who can assess your personal situation and help you find the most suitable option.

This article is intended for general information only and does not constitute financial advice. Always seek personalised advice from a qualified mortgage adviser before making any financial decisions.