Can I Pay Mortgage With Credit Card? What It Really Costs
June 30, 2026
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Understand mortgages with clear guides on deposits, fixed vs variable rates, fees and how to qualify, written for first-time buyers.
To qualify for a mortgage, lenders typically evaluate your credit score, income stability, employment history, and debt-to-income ratio, the percentage of your monthly income that goes toward debt payments. You’ll generally need a credit score of at least 580-620 for certain loan types, though conventional loans often require 620 or higher for the best rates. Lenders also want to see a reliable income source, usually requiring two years of employment history, and a manageable debt load. Having a larger deposit, stable finances, and a good credit history significantly improves your chances of qualifying and securing favorable terms.
The minimum deposit required for a mortgage varies depending on the loan type and lender. Conventional mortgages often require a minimum deposit of around 5% to 10% of the property’s value, though putting down less than 20% usually means paying for private mortgage insurance (PMI). Government-backed loans may allow for lower minimum deposits, sometimes as low as 3% or even 0% for certain qualifying borrowers. A larger deposit reduces your loan amount, lowers your monthly payments, and can help you secure a better interest rate.
A fixed-rate mortgage has an interest rate that remains the same for the entire loan term, providing predictable monthly payments regardless of market changes, this offers stability and makes budgeting easier. A variable-rate (or adjustable-rate) mortgage has an interest rate that can fluctuate based on market conditions, often starting lower than fixed rates but with the risk of increasing over time. Fixed rates are generally preferred by those who value certainty and plan to stay in their home long-term, while variable rates might suit those expecting rates to fall or who plan to sell or refinance before any rate changes take effect.
A mortgage in principle, also called a pre-approval or agreement in principle, is a statement from a lender indicating how much they would likely be willing to lend you based on an initial assessment of your income, credit score, and financial situation. It’s not a guaranteed offer, but it gives you a realistic budget for house-hunting and shows sellers and estate agents that you’re a serious, financially capable buyer. Obtaining this before house-hunting can streamline the buying process and strengthen your position when making an offer.
Getting a mortgage involves several fees beyond the deposit and monthly payments. These typically include an arrangement or origination fee charged by the lender for setting up the loan, valuation or appraisal fees to assess the property’s worth, and legal or conveyancing fees for the legal work involved in the property transfer. You may also encounter broker fees if using a mortgage broker, mortgage insurance if your deposit is below a certain threshold, and early repayment charges if you pay off the mortgage ahead of schedule on certain fixed-rate deals. It’s important to factor these into your overall budget when planning a property purchase.
