004 HOW TO GET THE BEST MORTGAGE RATES. HOW MUCH CAN YOU BORROW?

Mortgage broker James Witt shares his top tips on getting the best mortgage deals, choosing the best type of mortgage and the importance of reserving mortgage deals in advance. How much can you borrow? Does it make a difference if you are employed, self-employed or a contractor? Do lenders take into account income such as a bonus or spousal maintenance?

James Witt is a specialist in residential and investment property mortgages and holistic integration of mortgages and financial plans. Figures stated in this podcast are as of recording in January 2025.

Lisa Conway-Hughes is a Chartered Financial Adviser, a Fellow of the Personal Finance Society and founder of LCH/WEALTH. Lisa regularly posts financial information, education and updates on her hugely popular Instagram account:
https://www.instagram.com/misslollymoney/

Book a one to one Financial Diagnosis with LCH/WEALTH here:
https://lchwealth.co.uk/lch_wealth_services/one-to-one-financial-diagnosis/

This content is to be used for information and educational purposes only and nothing contained in it is or is intended to be construed as individual financial advice. Financial advice must only be given on an individual basis. If you require legal advice, financial advice or any other expert assistance, you should seek the services of a competent and qualified professional.

Show Transcript

Transcript featuring Lisa Conway-Hughes and James Witt

Lisa Conway-Hughes: How do you make that decision—whether to fix or go variable? Today I’m joined by mortgage broker James Witt, and we’re diving into all things mortgages: best rates, fixed vs variable, credit scores, common pitfalls, and how to get organised. Welcome, James!

James Witt: Thanks, Lisa. Excited to be here.

Lisa Conway-Hughes: Let’s start with the basics. What should people do if their mortgage is coming up for renewal in the next six to twelve months?

James Witt: Start preparing a year in advance. Look at your credit file, work out how much you can borrow, and run a decision in principle with a lender. That gives you a computer-says-yes or computer-says-no answer. If there are blemishes on your credit file—especially errors or fraud—it can take time to fix them, so the earlier the better.

Lisa Conway-Hughes: What are the biggest culprits that mess up people’s credit files?

James Witt: Phone and internet providers. Missed payments often happen when people switch services and forget a final bill. They post to your old address, you don’t know about it, and it lands on your credit report. It can take 30 working days to fix. That’s why it’s so important to get ahead of the game.

Lisa Conway-Hughes: Any tips for improving your credit file?

James Witt: Use a credit card and pay it off in full. Be on the electoral roll. Avoid pay-as-you-go phones—use contractual credit. Make sure both partners are listed on utility bills and the electoral roll.

Lisa Conway-Hughes: Should everyone use a mortgage broker?

James Witt: I’d say yes—99% of people would benefit. We have access to the whole market and know lenders’ policies inside out. Sure, you can compare rates online, but we know which lenders will accept your specific circumstances and keep you updated on rate changes. We also remind clients when it’s time to remortgage—so they don’t end up stuck on a standard variable rate at 8% or 9%.

Lisa Conway-Hughes: That’s a big one. Why do so many people end up on standard variable rates?

James Witt: Often it’s forgetfulness. Around 25–30% of mortgage holders are on standard variable rates. It’s a huge missed opportunity to save money. Even moving to a no-fee tracker deal with your current lender can save you thousands.

Lisa Conway-Hughes: What about reserving a deal early?

James Witt: Crucial. You can reserve deals 6–7 months in advance. One client locked in at 4.5%—five months later rates had risen to 6%. There’s no downside. If rates fall, you just switch to the better deal. Slightly more admin, but massively worth it.

Lisa Conway-Hughes: So, fix or go variable—how do people decide?

James Witt: Trackers offer flexibility, especially if you’re planning to overpay or move. But right now, you’d need rates to fall significantly and fast to make it worthwhile. Fixed rates offer predictability and peace of mind. Two-year fixes are good if you think rates will drop soon. Five-year fixes are a bit cheaper and give you more certainty.

Lisa Conway-Hughes: Let’s talk about loan-to-value. How does that affect your rate?

James Witt: It’s everything. The lower your loan-to-value (LTV), the better the rate. 60% LTV is ideal. 75% is still good. Above that, rates jump. Banks don’t use estate agents’ valuations—they send surveyors. Different lenders might give you different property values, so we often apply to more than one to compare results.

Lisa Conway-Hughes: How much can people borrow?

James Witt: Employed people can borrow around 4.5–5 times income. But bonuses, self-employed earnings, and company structures affect this. Some lenders use one year of accounts, others need two or three. It’s all about matching the right lender to your situation.

Lisa Conway-Hughes: What about those with spousal maintenance income?

James Witt: Some lenders will use it, some won’t. The better ones usually will, especially if it’s documented and consistent. A few lenders will even use it exclusively without needing additional income.

Lisa Conway-Hughes: Any tips for getting the best mortgage rate?

James Witt: Shop around. Compare what your current lender is offering to the rest of the market. Just because they say they give the best deals to existing customers doesn’t mean they actually do. And using a broker doesn’t cost you more—the commission is built in. Plus, we’ll keep an eye on changing rates.

Lisa Conway-Hughes: And what about managing your payments?

James Witt: I’m a big fan of stretching the mortgage term to the maximum allowed. It keeps your monthly payments low, and then you overpay as much as you want—up to 10% or even 20% a year, depending on the lender. That flexibility can be a game changer.

Lisa Conway-Hughes: Thanks so much, James. That was packed with practical advice!

James Witt: Pleasure!