Assessing your mortgage options in 2024 means looking beyond the headline rate.
Clients need to review affordability, deposit size, loan-to-value, income type, credit history, product fees and future plans.
First-time buyers may need to compare 95% mortgages, family support and government schemes. Existing homeowners may need to compare a remortgage, product transfer or wider borrowing review.
The right mortgage is not always the one with the lowest rate. It is the option that fits your income, risk level and long-term plans.
Why mortgage decisions felt different in 2024
A mortgage is not just a loan.
It is a long-term commitment shaped by income, property value, interest rates and household stability.
In 2024, many UK borrowers had to assess their mortgage options with more care. Rates were higher than many clients had known in previous years. Living costs also affected affordability. As a result, lenders looked closely at income, spending, credit commitments and future payment risk.
That changed the question for many clients.
The question was not only, “Can I get a mortgage?”
It became, “Which mortgage can I afford, and will it still work if my circumstances change?”
That is the practical starting point for any mortgage review.
Start with affordability, not the property price
Many buyers begin with the home they want.
Lenders begin somewhere else.
They look at whether the mortgage appears affordable based on income, outgoings, debts, dependants, credit history and the mortgage term.
This means two clients with the same income may receive different borrowing outcomes. One may have low debts and stable employment. Another may have childcare costs, loans or variable income.
Before choosing a mortgage, clients should review:
- Basic salary
- Overtime, bonus or commission income
- Self-employed income
- Monthly credit commitments
- Childcare costs
- Existing loans
- Deposit size
- Credit file conduct
- Expected future changes
A useful first step is to check borrowing potential with a residential affordability calculator. This should not replace advice, but it can help clients understand the starting point.
Deposit size and loan-to-value still matter
Deposit size affects mortgage choice.
A larger deposit usually reduces the loan-to-value. This can improve access to more lender products. It may also reduce the rate offered, depending on the lender and market conditions.
For example, a client buying a £250,000 property with a £25,000 deposit needs a 90% mortgage. A client with a £50,000 deposit needs an 80% mortgage.
That difference can matter.
It may affect the rate, product fees, underwriting approach and monthly payment.
However, not every buyer can build a large deposit. Rent, bills and household costs can make saving difficult. This is why some buyers look at 95% mortgages, family support or government-backed options.
First-time buyers can read more about the process on the first-time buyer mortgage page.
Government schemes and 95% mortgages
In 2024, smaller-deposit buyers still needed to understand how 95% mortgages worked.
The Mortgage Guarantee Scheme was designed to support the availability of 95% mortgages. It helped some lenders offer mortgages to clients with a 5% deposit, subject to criteria.
This did not mean every client with a 5% deposit could borrow.
The lender still assessed income, credit history, property type and affordability. The property also needed to meet lender requirements.
Clients considering a 95% mortgage should review:
- Whether the monthly payment is affordable
- Whether the rate is higher than lower loan-to-value options
- Whether they have emergency savings after purchase
- Whether house price changes could affect future remortgaging
- Whether family support or shared ownership may be suitable
A smaller deposit can help a client buy sooner. Yet it can also leave less room for movement if property values fall.
That is why 95% borrowing should be assessed with care, not emotion.
Fixed rate, tracker or variable rate?
A mortgage product is more than an interest rate.
In 2024, many clients compared fixed rates with tracker or variable options. Each route carried different trade-offs.
A fixed rate gives payment certainty for a set period. This can help clients budget, especially when household costs are tight.
A tracker rate may rise or fall if the rate it tracks changes. This can be useful in some markets, but the payment is less certain.
A standard variable rate is usually set by the lender. It can change and may be more expensive than other available options.
Clients should compare:
- Initial rate
- Product fee
- Early repayment charge
- Incentives
- Term length
- Flexibility
- Total cost during the deal period
- What happens when the deal ends
The cheapest headline rate may not be the best option if the fee is high or the product lacks flexibility.
Existing homeowners should review early
Homeowners should not wait until their current rate ends.
Many lenders allow a new deal to be reviewed months before the current product finishes. This can give the client time to compare their current lender with the wider market.
A remortgage may help when a client wants to:
- Review their rate before it ends
- Avoid moving onto a standard variable rate
- Borrow more for home improvements
- Change the mortgage term
- Review options after income changes
- Move from interest-only to repayment
- Compare their current lender with other lenders
However, remortgaging is not always the right answer.
A product transfer with the current lender may be simpler. It may also avoid a full new application. This can matter if income has changed or credit issues have appeared since the last mortgage was arranged.
A full review should compare both routes.
Borrowing more against your home
Some homeowners assess mortgage options because they want to raise money.
Common reasons include home improvements, debt consolidation, family support or buying another property.
This needs careful advice.
Borrowing more can increase the total cost of the mortgage. It may also extend debt over a longer term. If unsecured debts are secured against the home, the risk changes.
Clients should review:
- The reason for borrowing
- The new monthly payment
- The total cost over the full term
- Early repayment charges
- Alternative finance options
- The effect on future remortgaging
- Whether the borrowing remains affordable
For older homeowners, a standard remortgage may not always be the only option. Some may compare later-life borrowing options, including the difference between equity release and remortgaging.
Equity release is not suitable for everyone. It can affect inheritance, benefits and future choices. Specialist advice is essential.
Credit profile and lender criteria
Credit history can affect mortgage options.
A missed payment, default, County Court Judgment or debt management plan does not always prevent a mortgage application. However, it can affect lender choice, deposit requirements and rate options.
The timing and severity of the issue matter.
A small missed payment several years ago may be treated differently from a recent default. Lenders may also assess whether the issue has been resolved and whether current finances are stable.
Clients with credit issues should avoid making rushed applications. Each lender has different criteria.
Further guidance is available on the adverse credit mortgage page.
Protection should be part of the review
A mortgage review should not stop at the mortgage offer.
Clients also need to consider how the mortgage would be paid if income stopped due to illness, injury or death.
Protection is not about fear. It is about financial continuity.
Clients may need to review:
- Life insurance
- Critical illness cover
- Income protection
- Buildings insurance
- Contents insurance
- Landlord insurance, where relevant
The right cover depends on income, family position, mortgage size and existing protection. A useful place to start is the mortgage protection insurance guide.
How to assess your mortgage options in 2024
A strong mortgage review should answer six practical questions.
- What can I afford now?
- What could I afford if payments rise?
- How much deposit or equity do I have?
- Which lenders fit my income and credit profile?
- Which product gives the right balance of cost and certainty?
- What protection is needed around the mortgage?
These questions help turn a complex market into a structured decision.
Good mortgage advice is not about guessing where rates may go next. It is about testing the options against the client’s real position.
A mortgage should fit the property, the income and the future plan.
Speak to Connect Mortgages
Connect Mortgages helps UK clients assess residential, remortgage, buy-to-let and specialist mortgage options.
We are a credit broker, not a lender.
Our advisers review your circumstances before recommending a suitable mortgage option. This includes your income, deposit, property type, credit profile and long-term plans.
Your home may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.
