- Where the market is in 2026 — and the decisions that actually matter
- What you can borrow — deposit, loan-to-value and the affordability rules
- Fixed, tracker or variable — choosing the type of mortgage
- How long? — the term-length trade-off that costs thousands
- Stamp Duty — the bands, first-time-buyer relief, and the second-home surcharge
- Help to buy your first home — the schemes that still exist
- Overpaying — the maths, and overpay versus invest
- Remortgaging — timing it right and dodging the standard variable rate
- A second home or buy-to-let — the tax that catches people out
- Being a landlord in 2026 — the rules that changed
- Common and costly mistakes
- Your property and mortgage action plan
- Sources & further reading
Here's one of the Playbook's core sections in full — so you can see exactly how it reads before you buy. We follow one example throughout: Priya and Tom, first-time buyers with a combined income of around £70,000 and £48,000 saved, buying a flat at £320,000 — a 15% deposit and a mortgage of around £272,000 at 85% LTV.
4How long? — the term-length trade-off that costs thousands
The term is how many years you spread the mortgage over. A longer term means lower monthly payments — which is why 30-, 35- and even 40-year terms have become common — but it quietly multiplies the total interest you pay. This is one of the most under-appreciated numbers in the whole process.
Here's the shape of it, using a £250,000 loan at an illustrative 4.5%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 25 years | ~£1,389 | ~£167,000 |
| 30 years | ~£1,267 | ~£206,000 |
| 35 years | ~£1,183 | ~£247,000 |
| 40 years | ~£1,124 | ~£289,000 |
Stretching from 25 to 40 years cuts the monthly payment by around £265 — real breathing room — but adds roughly £122,000 in interest over the life of the loan, and means still paying it off deep into later life.
There's no single right answer: a longer term can be the sensible choice to get affordable payments now, especially early in a career. But it should be a deliberate choice, ideally with a plan to shorten it later — not an accident of chasing the lowest monthly figure…
The good news is the term isn't fixed forever. At each remortgage you can shorten it, and overpaying does the same job from the other direction — every £200 a month on a £250,000 loan can knock years off and save tens of thousands…
Read the rest — what you can borrow, fixed vs tracker, Stamp Duty relief, and overpay vs invest
The full 16-page Playbook covers what you can borrow and the affordability rules, choosing between a fixed rate, a tracker and the standard variable rate, the term-length trade-off, Stamp Duty bands and first-time-buyer relief, the first-home schemes that still exist, overpaying versus investing, remortgaging without drifting onto the standard rate, the tax on a second home or buy-to-let, and a step-by-step action plan.
Get the Playbook — £19.99 →One-off
- The Property & Mortgage Playbook (2026/27)
- Instant, watermarked PDF
- Yours to keep
WealthR Pro
- This Playbook, read online in-app
- Every other Playbook
- All future editions, kept current
- All wealth-tracking tools
- Mortgage, overpayment & compound-interest calculators
How much can I borrow for a mortgage?
Two things decide it: your deposit and your income. Lenders cap most lending at around 4.5 times income and stress-test whether you could still pay if rates rose. Your deposit sets your loan-to-value (LTV) — the mortgage as a percentage of the price — and the lower the LTV, the better the rate: the cheapest deals usually need 40% down (60% LTV). On a £70,000 combined income a 4.5× cap points to roughly £315,000 of borrowing. Borrowing right up to the maximum leaves little room if rates or your circumstances change.
Should I choose a fixed rate or a tracker?
It's about how much certainty you want. A fixed rate locks your payments for a set period (often 2 or 5 years) so you can budget with confidence, but usually carries early repayment charges of 1% to 5% if you leave or overpay beyond the allowance before the term ends. A tracker follows the base rate plus a margin — cheaper if rates fall, more expensive if they rise, and often with lower or no early repayment charges. The standard variable rate (SVR), currently averaging around 7%, is the one you're rolled onto when a deal ends and is almost always worth avoiding.
How much does a longer mortgage term cost?
A longer term lowers the monthly payment but quietly multiplies the total interest. On a £250,000 loan at an illustrative 4.5%, a 25-year term costs about £1,389 a month and roughly £167,000 in interest, while a 40-year term costs about £1,124 a month but roughly £289,000 in interest. Stretching from 25 to 40 years cuts the payment by around £265 a month but adds about £122,000 in interest over the life of the loan. A long term can be a sensible way to make payments affordable, but treat it as temporary — revisit it at each remortgage and overpay when you can.
How much Stamp Duty will I pay as a first-time buyer?
In England and Northern Ireland, first-time buyers pay nothing up to £300,000, then 5% on the portion between £300,001 and £500,000. Above a £500,000 purchase price the relief disappears entirely and you pay standard rates on the whole price. So a first-time buyer at £320,000 pays just £1,000 — nothing on the first £300,000 and 5% on the £20,000 above it. A home-mover would pay £6,000 on the same purchase. Buying a second home or buy-to-let adds a 5% surcharge on top of every band. Scotland and Wales run their own systems.
Is it better to overpay my mortgage or invest?
Overpaying gives you a guaranteed, tax-free return equal to your mortgage rate — pay down a 4.5% mortgage and you've effectively earned 4.5%, risk-free. On a £250,000 mortgage at 4.5% over 25 years, overpaying £200 a month cuts the term to under 20 years and saves roughly £38,000 in interest. But keep an emergency fund first, capture any employer pension match (usually free money), and note that higher-rate taxpayers often find a pension or long-term ISA more efficient — though that carries investment risk. Most fixed deals let you overpay up to 10% of the balance a year without penalty.
When should I remortgage?
Arrange your next deal before your current one ends. When a fixed or tracker deal finishes you're dropped onto the lender's standard variable rate — averaging around 7% — which is one of the most common and avoidable ways to waste money. Mortgage offers are typically valid for 3 to 6 months, so start shopping about four to six months before your deal ends and line up a new rate to start the day your fix finishes. You can do a product transfer with your existing lender (quick, few fees) or a full remortgage to a new lender (more choice, but a fresh affordability check). The goal is never to spend a single month on the SVR.
Is this financial advice?
No. The Playbook is general information for the 2026/27 tax year to help you understand how mortgages and property work in the UK. It is not personal financial or mortgage advice and doesn't account for your circumstances. A mortgage is the biggest financial commitment most people make, and your home may be repossessed if you do not keep up repayments. Confirm current rates and rules at gov.uk, and take qualified, regulated mortgage advice before committing to anything that matters.
Can I get the Playbook for free, and which tax year does it cover?
Every WealthR Playbook can be read online in-app with WealthR Pro (£39.99/year), along with all the tools and future editions kept current each tax year. Or buy this Playbook on its own for £19.99 as a PDF that's yours to keep. It covers the 2026/27 UK tax year, published July 2026, with the Bank of England base rate at 3.75% and Stamp Duty figures for England and Northern Ireland. Figures are checked against gov.uk.