---
title: "All frequently asked questions - page 14"
description: "Browse every question and answer in the Mortgage Lane FAQ library. Page 14 of 14."
url: "https://mortgagelane.com/faq/archive/14"
site: "Mortgage Lane"
date: "2026-10-01"
reviewed: "2026-10-01"
reading_time: "57 min"
language: "en-GB"
robots: "index,follow"
---

# All frequently asked questions - page 14

Browse every question and answer in the Mortgage Lane FAQ library. Page 14 of 14.

## All frequently asked questions

## Common questions

### Insurance

**Q: Can an insurer ask for genetic test results for critical illness cover?**

faq-id: can-an-insurer-ask-for-genetic-test-results-for-critical-illness-cover

No, an insurer that follows the Code on Genetic Testing and Insurance will not ask for or take account of a predictive genetic test result for critical illness cover, because no predictive test is approved under the Code for critical illness. The only approved test is for Huntington's disease, on life cover above £500,000. Insurers will not require you to take a genetic test, but they can ask about family medical history, and the results of a diagnostic test confirming a condition you already have can form part of your medical information ([GOV.UK: Code on Genetic Testing and Insurance](https://www.gov.uk/government/publications/code-on-genetic-testing-and-insurance)).

**Q: Is critical illness cover regulated?**

faq-id: is-critical-illness-cover-regulated

Yes, critical illness cover is regulated. The FCA treats it as a pure protection product, and advising on and arranging it is insurance distribution under the FCA's Insurance: Conduct of Business sourcebook (ICOBS), not the mortgage rules, even when the cover protects a mortgage. The Consumer Insurance (Disclosure and Representations) Act 2012 sets your duty when you apply. A complaint goes first to the firm that sold the policy, or to the insurer for a claim, which must usually give a final response within eight weeks, and then to the Financial Ombudsman Service ([Financial Ombudsman Service: critical illness cover](https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/investments/critical-illness-cover)).

**Q: How does family income benefit work?**

faq-id: how-does-family-income-benefit-work

You choose an income and a term, often until your youngest child finishes education, and pay a premium for the cover. If you die during the term, the insurer pays that income from the date of the claim to the end of the term, so a claim early in the term pays for longer than a claim near the end.

The monthly amount stays the same, or rises each year if the policy is indexed. If the term ends without a claim, the policy stops and pays nothing, because it has no cash-in value. A policy written in trust pays the trustees; without a trust, a policy you own on your own life pays your estate, and a joint policy pays the surviving policyholder.

**Q: What is family income benefit?**

faq-id: what-is-family-income-benefit

Family income benefit is life insurance that, if you die during the policy term, pays your family a regular tax-free income, usually monthly, from the date of a valid claim until the end of the term, instead of a single lump sum. It is designed to replace lost earnings while children are growing up. HMRC treats the payments as a series of capital sums paid on death rather than as income ([HMRC: IPTM8080](https://www.gov.uk/hmrc-internal-manuals/insurance-policyholder-taxation-manual/iptm8080)). Because fewer payments remain as the term runs down, the most the insurer could pay falls each year, which is why it usually costs less than level term cover with the same starting value.

**Q: Should I choose family income benefit or a lump sum?**

faq-id: should-i-choose-family-income-benefit-or-a-lump-sum

Family income benefit suits replacing monthly earnings and budgeting, while a lump sum suits large one-off needs such as repaying a mortgage. A family can hold both: decreasing or level term cover for the mortgage, and family income benefit for household bills. A lump sum has to be managed and invested to produce an income, while family income benefit pays the income directly but cannot be drawn faster than the policy allows, unless it has a lump-sum option. The right mix depends on the mortgage, the household's monthly costs and the children's ages.

**Q: How much does family income benefit pay out in total?**

faq-id: how-much-does-family-income-benefit-pay-out-in-total

The total depends on when a claim is made. A level policy paying £2,500 a month over a 20-year term pays £600,000 on a claim at the very start, £450,000 with 15 years left, £300,000 with 10 years left and £150,000 with five years left. The monthly income stays the same in each case, unless the policy is indexed, when it rises each year and the total is higher. These are illustrative figures, not a quote or any insurer's terms.

**Q: Why is family income benefit cheaper than level term cover?**

faq-id: why-is-family-income-benefit-cheaper-than-level-term-cover

Family income benefit usually costs less than level term cover because the insurer's maximum total payout falls every year as the remaining term shortens, whereas level term pays the same lump sum throughout. On a £2,500 a month policy over 20 years, the most it could pay falls from £600,000 at the start to £300,000 halfway through, while a £600,000 level term policy could still pay £600,000. The monthly income the family receives does not fall. Each insurer sets its own premiums, so the size of the difference varies.

**Q: Should family income benefit be written in trust?**

faq-id: should-family-income-benefit-be-written-in-trust

Writing family income benefit in trust means the payments go to trustees for your beneficiaries without waiting for probate, and normally fall outside your estate for inheritance tax. HMRC's IHT410 form deals with policies payable to trust beneficiaries as outside the estate ([HMRC: IHT410](https://www.gov.uk/government/publications/inheritance-tax-life-assurance-and-annuities-iht410)). Without a trust, the remaining payments may form part of your estate and wait for the grant. The trust can be set up when the policy starts. Mortgage Lane does not give legal or tax advice; a solicitor can advise on the trust and the choice of trustees.

**Q: Is family income benefit taxable?**

faq-id: is-family-income-benefit-taxable

Payments made on a death under a family income benefit policy are free of income tax for the recipients: HMRC treats them as a series of capital sums paid on death, not as income ([HMRC: IPTM8080](https://www.gov.uk/hmrc-internal-manuals/insurance-policyholder-taxation-manual/iptm8080)). Inheritance tax is a separate question. Where the policy is not written in trust, the value of the remaining payments may form part of the policyholder's estate for inheritance tax; written in trust, it normally falls outside it. Mortgage Lane does not give tax advice, and GOV.UK or a tax adviser can help with your own position, including how income paid on a critical illness claim is treated.

**Q: How long should a family income benefit policy last?**

faq-id: how-long-should-a-family-income-benefit-policy-last

A family income benefit policy is set to last until the youngest child reaches financial independence, such as their 18th or 21st birthday or the end of full-time education. The longer the term, the higher the premium and the larger the potential payout. For a family whose youngest child is five, a £2,500 a month policy to the 18th birthday is a 13-year term that could pay up to £390,000, and one to the 21st birthday is a 16-year term that could pay up to £480,000. These are illustrative figures.

**Q: Can family income benefit pay off my mortgage?**

faq-id: can-family-income-benefit-pay-off-my-mortgage

Family income benefit pays an income rather than a lump sum, so it does not clear a mortgage in one payment, though the income can cover the monthly mortgage payments. A decreasing or level term policy is usually used to repay the mortgage itself: decreasing term for a repayment mortgage, whose balance falls over the term, and level term for an interest-only mortgage, whose balance stays the same. With the mortgage cleared by its own policy, family income benefit can be set at the household's monthly need without the mortgage payment.

**Q: What is indexation on family income benefit?**

faq-id: what-is-indexation-on-family-income-benefit

Indexation increases the income each year in line with inflation, before a claim and, on some policies, during it, so the payments keep their value over a long term. The policy names the inflation measure it uses. Indexed policies cost more, and the premium usually rises each year as the cover increases. At an illustrative 3% a year, a £2,500 monthly income becomes about £3,360 a month after 10 years. Whether increases continue once a claim has started depends on the policy wording.

**Q: Can I add critical illness cover to family income benefit?**

faq-id: can-i-add-critical-illness-cover-to-family-income-benefit

Some insurers offer family income benefit with critical illness cover, paying the income from diagnosis of a listed serious illness until the end of the term. It costs more than life-only cover and is subject to the policy's critical illness definitions, which set out the conditions covered and when each counts. You must answer the application questions with reasonable care, because a careless or deliberate misrepresentation can reduce or defeat a claim ([Consumer Insurance (Disclosure and Representations) Act 2012, Schedule 1](https://www.legislation.gov.uk/ukpga/2012/6/schedule/1)).

**Q: Can family income benefit be taken as a lump sum?**

faq-id: can-family-income-benefit-be-taken-as-a-lump-sum

Some insurers allow a family income benefit claim to be converted into a single lump sum, discounted to reflect early payment, while others pay only as income. The option and its terms, including how the discount is worked out, are set out in the policy, so check the wording before relying on it. Where a family expects to need capital, for example to repay a mortgage, a separate level or decreasing term policy pays a lump sum by design.

**Q: Is family income benefit regulated?**

faq-id: is-family-income-benefit-regulated

Yes. Family income benefit is a pure protection contract, long-term insurance that pays only on death or incapacity and has no cash-in value ([FCA Handbook: pure protection contract](https://handbook.fca.org.uk/glossary/G935)). Advising on and arranging it is insurance distribution, regulated by the Financial Conduct Authority under its Insurance: Conduct of Business sourcebook (ICOBS), not under the mortgage rules. The adviser must identify your demands and needs before a policy is taken out. If a complaint about the policy or a claim is not resolved, you can take it to the Financial Ombudsman Service free of charge.

**Q: Does family income benefit have a cash-in value?**

faq-id: does-family-income-benefit-have-a-cash-in-value

No. Family income benefit pays only on a valid claim during the term and builds up no savings, so it has no cash-in value. If you stop paying the premiums, the cover ends and nothing is paid back, and if the term ends without a claim, the policy stops. Having no cash-in value is part of the FCA's definition of a pure protection contract, which has no surrender value where the premiums are paid regularly ([FCA Handbook: pure protection contract](https://handbook.fca.org.uk/glossary/G935)).

**Q: How much family income benefit do I need?**

faq-id: how-much-family-income-benefit-do-i-need

You can start from take-home pay or the household's monthly outgoings, and then take off anything another policy or source would cover. If decreasing or level term cover would clear the mortgage, the income can be set without the mortgage payment. A stay-at-home parent's cover is set from the childcare and running costs the family would face. Death-in-service benefit and savings reduce the gap. The term then runs to the youngest child's independence. Mortgage Lane works through these figures with you before any policy is chosen.

**Q: Can I get joint family income benefit?**

faq-id: can-i-get-joint-family-income-benefit

Yes, family income benefit can cover one life or two, depending on the insurer. A joint policy usually pays on the first death and then ends, so the surviving partner receives the income for the rest of the term but has no cover of their own afterwards. Two single policies are separate contracts, so each can pay out. Each insurer sets its own terms for joint cover. The choice turns on the cost and on whether both incomes, or both roles at home, need replacing.

**Q: Does family income benefit pay out on terminal illness?**

faq-id: does-family-income-benefit-pay-out-on-terminal-illness

Some family income benefit policies include terminal illness cover as standard, which pays the income on a diagnosis of terminal illness that meets the policy's definition, instead of waiting for death. The definition and any conditions are set by each insurer and written in the policy, so check them before relying on the cover. As with any claim, the insurer checks the answers given in the application, and a careless or deliberate misrepresentation can reduce or defeat the claim.

**Q: Do stay-at-home parents need family income benefit?**

faq-id: do-stay-at-home-parents-need-family-income-benefit

A stay-at-home parent earns no salary, but the cost of childcare and running the home if they die can be substantial, and family income benefit can fund it. The surviving parent may need to pay for childcare, school runs and help at home, or reduce their own working hours. Cover is set from those costs rather than from earnings, and the term can run until the youngest child is independent. Whether it is worth the premium depends on the family's other resources, such as savings or the working parent's own cover.

**Q: What do I have to tell the insurer when I apply for family income benefit?**

faq-id: what-do-i-have-to-tell-the-insurer-when-i-apply-for-family-income-benefit

You must answer the insurer's questions with reasonable care, which is the legal duty under the Consumer Insurance (Disclosure and Representations) Act 2012 ([legislation.gov.uk: section 2](https://www.legislation.gov.uk/ukpga/2012/6/section/2)). The questions cover your health and lifestyle, and the insurer may ask for medical evidence. If an answer was deliberately or recklessly wrong, the insurer can avoid the policy and refuse all claims. If it was careless, the insurer can apply the terms it would have offered, reduce a claim in proportion to the premium it would have charged, or, if it would not have offered cover at all, avoid the policy and refuse claims but return the premiums.

**Q: Who receives family income benefit payments?**

faq-id: who-receives-family-income-benefit-payments

It depends on how the policy is set up. A policy written in trust pays the trustees, who hold the income for the beneficiaries named in the trust, such as the children. A joint policy usually pays the surviving policyholder, and a policy one person owns on another's life pays the owner. A single-life policy you own on your own life and do not write in trust pays your estate, so the payments wait for the personal representatives to obtain a grant of probate, or confirmation in Scotland, and their value may count towards the estate for inheritance tax. HMRC's IHT410 form deals with trust policies separately from sums paid to the estate ([HMRC: IHT410](https://www.gov.uk/government/publications/inheritance-tax-life-assurance-and-annuities-iht410)).

**Q: What is income protection insurance?**

faq-id: what-is-income-protection-insurance

Income protection insurance pays a monthly income if illness or injury stops you working, starting after a deferred period you choose and continuing until you return to work, the benefit period ends or the policy ends. It is not limited to a list of conditions, so it covers most causes of absence unless the policy excludes them, and it can pay out more than once over its term for separate claims. The benefit replaces part of your income, up to a limit each insurer sets. Benefit from a personal policy you pay for yourself is free of income tax.

**Q: Do I need income protection if my employer pays sick pay?**

faq-id: do-i-need-income-protection-if-my-employer-pays-sick-pay

Whether you need income protection depends on how long your employer pays, your savings and the outgoings that must continue, such as the mortgage. Employer sick pay usually lasts a limited time, after which Statutory Sick Pay of up to £123.25 a week, as at October 2026, may be all that remains, and it stops after 28 weeks. Income protection with a deferred period that ends when your employer's pay stops covers the longer absences that sick pay does not. Your contract or staff handbook sets out your employer's scheme.

**Q: Can self-employed people get income protection?**

faq-id: can-self-employed-people-get-income-protection

Yes, self-employed people can get income protection, with the benefit based on taxable profit evidenced by tax returns or accounts. Because the self-employed receive no employer sick pay and cannot get Statutory Sick Pay, their income stops on the first day of absence, so a shorter deferred period shortens the time they go without income. Some policies suit irregular incomes. HMRC does not allow a sole trader or partner to deduct the premiums for their own sickness cover from trading profits, and treats the benefits as generally tax-free ([HMRC manual: BIM45560](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45560)).

**Q: What is a deferred period?**

faq-id: what-is-a-deferred-period

A deferred period is the time you must be off work before an income protection policy starts paying, such as 4, 8, 13, 26 or 52 weeks; the options vary by insurer. Setting it to end when your employer's sick pay stops avoids paying for cover during weeks you are already paid. A longer deferred period lowers the premium but means relying on savings or sick pay for longer. The self-employed have no employer pay or Statutory Sick Pay, so for them the deferred period is the whole gap they must fund themselves.

**Q: How much income protection can I get?**

faq-id: how-much-income-protection-can-i-get

Insurers limit income protection benefit to a proportion of your earnings, so it replaces only part of your income, and each insurer sets its own maximum. Some policies also reduce the benefit by other income you receive while off work, such as state benefits or payments from other similar policies, under rules each insurer sets ([Financial Ombudsman Service: income protection insurance](https://www.financial-ombudsman.org.uk/businesses/resolving-complaint/complaints-deal/insurance/medical-insurance/income-protection-insurance)). A practical starting point is the benefit that covers essential outgoings, such as the mortgage and bills, within the insurer's limit.

**Q: Does income protection cover the same conditions as critical illness?**

faq-id: does-income-protection-cover-the-same-conditions-as-critical-illness

No, income protection does not work from a list of conditions: it pays a monthly income if any illness or injury stops you working, after the deferred period, subject to its own underwriting and any exclusions. Critical illness cover pays a lump sum on diagnosis of a condition listed in the policy, whether or not you can work. Income protection can therefore cover absences caused by conditions a critical illness policy does not list, or has declined or excluded. Some people hold both, for different risks: an income while off work, and a lump sum on a serious diagnosis.

**Q: What does own occupation mean?**

faq-id: what-does-own-occupation-mean

Own occupation means the policy pays if illness or injury stops you doing your own job, the role you had just before you became unable to work, even if you could do a different one. It is the widest occupation definition, so it pays in the most circumstances, and it raises the premium. Suited occupation pays only if you cannot do any job suited to your experience, and activities-based definitions, which test everyday work tasks, are the narrowest. For manual and higher-risk jobs some insurers offer only a narrower definition.

**Q: Is income protection benefit taxed?**

faq-id: is-income-protection-benefit-taxed

Benefit from a personal income protection policy you pay for yourself is free of income tax, because the law exempts payments from a policy insuring against a health or employment risk where you had no income tax relief on the premiums ([legislation.gov.uk: ITTOIA 2005, section 735](https://www.legislation.gov.uk/ukpga/2005/5/section/735)). Where an employer pays for a group or executive policy, the benefit reaches you through payroll and is taxed as earnings, as HMRC's guidance on employer-funded sick pay sets out ([HMRC manual: EIM06410](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim06410)). Mortgage Lane does not give tax advice; an accountant or HMRC can confirm your position.

**Q: How much is Statutory Sick Pay in 2026?**

faq-id: how-much-is-statutory-sick-pay-in-2026

Statutory Sick Pay for 2026 to 2027 is £123.25 a week, or 80% of your average weekly earnings if that is lower, paid by your employer for up to 28 weeks ([GOV.UK: rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)). From 6 April 2026, the Employment Rights Act 2025 removed the three waiting days, so SSP is paid from the first day you are off sick on a day you would normally work. It also removed the Lower Earnings Limit, so employees on low pay now qualify. The same changes apply in Northern Ireland.

**Q: Can I get income protection with a health condition?**

faq-id: can-i-get-income-protection-with-a-health-condition

You may be able to get income protection with a health condition, though the insurer may exclude claims related to it, apply a higher premium or, for some conditions, decline. Back and mental health histories can lead to exclusions, and the outcome depends on how each insurer underwrites the condition. You have a duty to take reasonable care to answer the insurer's questions accurately ([legislation.gov.uk: Consumer Insurance (Disclosure and Representations) Act 2012, section 2](https://www.legislation.gov.uk/ukpga/2012/6/section/2)), and a careless or deliberate misrepresentation can let the insurer reduce or refuse a claim later.

**Q: What is the difference between full-term and limited benefit periods?**

faq-id: what-is-the-difference-between-full-term-and-limited-benefit-periods

A full-term income protection policy pays until you recover, retire or the policy ends, however long the claim lasts. A limited benefit period policy stops paying after a set time for each claim, such as one, two or five years, at a lower premium, and can pay again on a later, separate claim. The benefit period sets how long the policy pays on each claim, the deferred period sets when it starts, and the policy term sets the date all cover ends.

**Q: What is executive income protection?**

faq-id: what-is-executive-income-protection

Executive income protection is a policy a company pays for to cover a director or employee. The company owns the policy and pays the premium, which it can deduct as a business expense where HMRC's test is met. The insurer pays the benefit to the company, which pays it to the individual through payroll, where it is taxed as earnings ([HMRC manual: EIM06410](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim06410)). It differs from key person insurance, which protects the company's own profits. Mortgage Lane does not give tax advice, and an accountant can confirm the treatment for a particular company.

**Q: What happens when Statutory Sick Pay runs out?**

faq-id: what-happens-when-statutory-sick-pay-runs-out

Statutory Sick Pay stops after 28 weeks, and if you are still unable to work you may be able to apply for Universal Credit or Employment and Support Allowance ([GOV.UK: Statutory Sick Pay eligibility](https://www.gov.uk/statutory-sick-pay/eligibility)). A homeowner getting a qualifying benefit may be able to get Support for Mortgage Interest, which is paid as a loan towards the mortgage interest and repaid with interest when the home is sold or transferred ([GOV.UK: Support for Mortgage Interest](https://www.gov.uk/support-for-mortgage-interest)). An income protection policy that is paying carries on after SSP ends, until you return to work or the benefit period ends.

**Q: Can I claim income protection more than once?**

faq-id: can-i-claim-income-protection-more-than-once

Yes, an income protection policy can pay out more than once over its term, for separate periods of absence, provided the policy is still in force and each claim meets its terms. A limited benefit period applies to each claim, so a policy with a two-year limit can pay for up to two years on one claim and again on a later, separate claim. The policy terms set how the deferred period applies to a later claim and how a return of the same condition is treated.

**Q: Does income protection cover mental health conditions?**

faq-id: does-income-protection-cover-mental-health-conditions

Income protection can pay out for mental health conditions. It does not work from a list of conditions: it pays if any illness or injury stops you working, unless the policy excludes the condition. Mental health conditions and back problems are among the common causes of long absence that a policy covers unless they are excluded. Someone with a history of mental health problems may be offered cover with an exclusion for that history or at a higher premium, and the terms offered depend on how each insurer underwrites that history. Accurate answers on the application protect a later claim.

**Q: Does income protection cover redundancy?**

faq-id: does-income-protection-cover-redundancy

No, income protection pays when illness or injury stops you working, not when you lose your job. It replaces part of your income only while you are unable to work and the policy terms are met. Some mortgage payment protection policies add unemployment cover to illness and injury cover, but they pay only the mortgage payment, for a limited period the policy sets, and each policy defines what counts as unemployment. Check what a policy covers before relying on it for job loss.

**Q: What is mortgage payment protection insurance?**

faq-id: what-is-mortgage-payment-protection-insurance

Mortgage payment protection insurance is a shorter-term policy that pays your monthly mortgage payment if illness or injury stops you working, and some policies also pay on unemployment. It pays for a limited period set by the policy, such as one or two years, and covers only the mortgage payment. That makes it narrower than income protection, which replaces part of your income, can be spent on any outgoing and can pay for as long as its benefit period allows.

**Q: What affects the cost of income protection?**

faq-id: what-affects-the-cost-of-income-protection

Income protection premiums depend on your age, occupation, health and smoking status, and on the policy: the benefit amount, the deferred period, the occupation definition and the benefit period. A longer deferred period and a limited benefit period lower the premium, because the insurer pays later or for less time. Own occupation cover and a full-term benefit period raise it. The insurer cannot change a guaranteed premium except in the ways the policy sets out at the start, while it can change a reviewable premium at its reviews. Each insurer sets its own premiums.

**Q: Is income protection regulated?**

faq-id: is-income-protection-regulated

Yes. Income protection is a pure protection insurance contract, and firms that advise on or arrange it carry out insurance distribution, regulated by the Financial Conduct Authority under its Insurance: Conduct of Business sourcebook, known as ICOBS ([FCA Handbook: ICOBS 1.1](https://www.handbook.fca.org.uk/handbook/ICOBS/1/1.html)). The Prudential Regulation Authority also supervises insurers. When you apply you have a legal duty to take reasonable care not to misrepresent your health or circumstances, and a complaint the firm does not resolve can go to the Financial Ombudsman Service.

**Q: Can I get Statutory Sick Pay if I am self-employed?**

faq-id: can-i-get-statutory-sick-pay-if-i-am-self-employed

No, Statutory Sick Pay is paid by an employer to people classed as employees, so the self-employed cannot get it ([GOV.UK: Statutory Sick Pay eligibility](https://www.gov.uk/statutory-sick-pay/eligibility)). A contractor employed through an umbrella company is that company's employee, with the same employment rights as other employees. A self-employed person who cannot work may be able to apply for Universal Credit or Employment and Support Allowance. With no employer pay and no SSP, the self-employed lose their income from the first day of absence, so a short deferred period on income protection shortens the time they go without income.

**Q: What is key person insurance?**

faq-id: what-is-key-person-insurance

Key person insurance is a life, or life and critical illness, policy owned and paid for by a business on someone whose death or serious illness would cost it money. The business receives the payout and uses it to cover lost profit, recruit a replacement or repay loans. It is usually term insurance, and the sum assured is justified by the financial loss rather than the person's salary alone. Insurers need the business to show an insurable interest, meaning it would lose money, and ask for evidence such as accounts. It is also called keyman insurance or key person cover.

**Q: How much key person cover does a business need?**

faq-id: how-much-key-person-cover-does-a-business-need

A business needs enough key person cover to meet the financial loss it would suffer, measured by the person's contribution to profit over the time needed to replace them, recruitment and replacement costs, and any borrowing that depends on them. Insurers require evidence for the sum and set their own limits for each method. On an illustrative company with £1,200,000 of gross profit, a director who generates 30% of it and would take 18 months to replace gives a profit contribution of £540,000, against £400,000 on an illustrative salary multiple of 5 times £80,000.

**Q: Are key person insurance premiums tax deductible?**

faq-id: are-key-person-insurance-premiums-tax-deductible

Key person premiums are deductible where they meet HMRC's two conditions: the sole purpose of the insurance is to meet a loss of trading income from losing the key person's services, and a life policy is term insurance with no other benefits, for a term no longer than the person's usefulness to the business ([GOV.UK: HMRC Business Income Manual, BIM45525](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45525)). HMRC may find a non-trade purpose where the insured is a major shareholder, so a significant shareholding can make the premiums non-deductible. Whole of life and endowment premiums are capital expenditure. The business's accountant confirms the position before the policy starts.

**Q: Is a key person insurance payout taxable?**

faq-id: is-a-key-person-insurance-payout-taxable

A key person payout is normally taxed as a trading receipt where the policy meets HMRC's conditions for deductible premiums: HMRC treats it as income of the trade under section 103 of the Corporation Tax Act 2009 for a company, or section 106 of the Income Tax (Trading and Other Income) Act 2005 for an unincorporated business.

Where the policy does not meet them, as may be the case with cover for a major shareholder or a policy taken out to repay a loan, the premiums are not deductible and HMRC's general rule is that the payout is not taxed as trading income. HMRC adds that no assurance can be given, because each receipt is a separate question of law ([GOV.UK: HMRC Business Income Manual, BIM45525](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45525)).

**Q: Who counts as a key person?**

faq-id: who-counts-as-a-key-person

A key person is anyone whose loss would cause the business financial harm, such as a founder who wins most of the work, a director whose personal guarantee backs the business's borrowing, a top salesperson or a specialist the business cannot quickly replace. The test is financial, whatever the person's seniority: a technician whose skills keep a contract running can be a key person, while a senior manager whose role others can cover may not be. The business needs to show the loss, because the sum assured is limited to what the evidence justifies.

**Q: What is the difference between key person and shareholder protection?**

faq-id: what-is-the-difference-between-key-person-and-shareholder-protection

Key person insurance pays the business to cover its financial loss, while shareholder protection pays the remaining owners so they can buy a deceased or seriously ill owner's shares, usually under a cross-option agreement. Many businesses need both, because one death can cause both losses: the company loses profit, and the owner's estate wants paying for the shares. Key person cover is owned by the business, while shareholder protection is arranged so the money reaches the surviving owners. A solicitor draws up the agreement, and an accountant confirms the tax position.

**Q: Who receives the payout from key person insurance?**

faq-id: who-receives-the-payout-from-key-person-insurance

The business receives the payout from key person insurance, because it owns the policy and pays the premiums. The insured person and their family receive nothing directly; personal family protection needs separate cover, such as a relevant life policy or personal life insurance. The business decides how to use the money, for example to replace lost profit, pay for recruitment or repay a loan, and where the policy meets HMRC's conditions for deductible premiums, the payout is normally taxed as a receipt of the trade.

**Q: What is key person loan protection?**

faq-id: what-is-key-person-loan-protection

Key person loan protection is cover sized to repay business borrowing that depends on a particular person, such as a facility backed by a director's personal guarantee. It lets the business repay or restructure the loan if that person dies or becomes seriously ill. The sum follows the outstanding balance and the term follows the loan. Because its purpose is to repay borrowing rather than replace lost trading income, its premiums may not meet HMRC's conditions for a deduction, and the accountant confirms the tax position before the policy starts.

**Q: Can a business insure a director who owns shares?**

faq-id: can-a-business-insure-a-director-who-owns-shares

A business can take out key person cover on a director who owns shares, but where the shareholding is significant the premiums are less likely to be tax deductible. HMRC's guidance says there may be a non-trade purpose where a policy covers directors who are major shareholders but not other employees, or where the director's death would significantly affect the value of the company's shares ([GOV.UK: HMRC Business Income Manual, BIM45530](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45530)). The cover can still protect profit or repay loans, and the tax position is agreed with the accountant. Shareholder protection, which funds the purchase of the director's shares, is a separate policy.

**Q: How do insurers calculate the maximum key person cover?**

faq-id: how-do-insurers-calculate-the-maximum-key-person-cover

Insurers accept a justified sum based on methods such as a multiple of the person's remuneration, their share of gross profit over a replacement period, or loans dependent on them, and set their own maximum multiples. Accounts and details of the person's role support the figure. The law sets an outer limit as well: under the Life Assurance Act 1774, no more can be recovered than the value of the policyholder's interest in the life insured ([legislation.gov.uk: Life Assurance Act 1774, section 3](https://www.legislation.gov.uk/apgb/Geo3/14/48/section/3)). The multiple, the replacement period accepted and the evidence asked for vary by insurer.

**Q: Should key person cover include critical illness?**

faq-id: should-key-person-cover-include-critical-illness

Whether key person cover should include critical illness depends on how the business would cope with a long absence, weighed against the extra premium. With critical illness cover included, key person insurance pays out on diagnosis of a specified serious illness, which can remove someone from the business as completely as death, while a life-only policy would pay nothing if the person survived but could not work. Each policy lists the conditions it covers and how severe a claim must be. HMRC's key person guidance covers critical illness as well as death, so the same tax tests apply.

**Q: What is a relevant life policy?**

faq-id: what-is-a-relevant-life-policy

A relevant life policy is a company-paid life insurance policy for an individual director or employee, paying a lump sum to their family through a trust if they die in service. HMRC's guidance limits it to a lump sum on death before an age no higher than 75, with no surrender value and beneficiaries who are individuals or charities ([GOV.UK: HMRC Employment Income Manual, EIM15045](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim15045)). A payment from it is outside the tax charge on employer-financed retirement benefits, and the premiums can be exempt from a benefit in kind charge, depending on the circumstances. The company's accountant confirms whether it can deduct the premiums.

**Q: How much does key person insurance cost?**

faq-id: how-much-does-key-person-insurance-cost

The cost of key person insurance depends on the key person's age, health, smoking status and occupation, the sum assured, the term and whether critical illness cover is included, so there is no standard premium. Insurers underwrite the person as for any life policy and also review the business's financial justification for the sum. A lower sum assured, a shorter term or life cover alone generally costs less, but also pays less. Whether the premiums are deductible for tax, which changes their net cost, depends on HMRC's conditions and is confirmed by the business's accountant.

**Q: Is key person insurance regulated?**

faq-id: is-key-person-insurance-regulated

Yes. Advising on and arranging key person insurance is insurance distribution, regulated by the Financial Conduct Authority under its Insurance: Conduct of Business sourcebook (ICOBS), not the mortgage rules. Because the policyholder is a business, it owes the insurer a fair presentation of the risk under the Insurance Act 2015, not the consumer's duty to take reasonable care. A business that is a micro-enterprise, or a small business with turnover under £6.5 million and either fewer than 50 employees or a balance sheet under £5 million, can take an unresolved complaint to the Financial Ombudsman Service ([Financial Ombudsman Service: who we can help](https://sme.financial-ombudsman.org.uk/can-help)).

**Q: How long should key person cover last?**

faq-id: how-long-should-key-person-cover-last

Key person cover usually lasts for the period the business depends on the person, or for the term of a loan it protects. HMRC's guidance for deductible premiums says the insurance term should not extend beyond the period of the person's usefulness to the business ([GOV.UK: HMRC Business Income Manual, BIM45525](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45525)), so for deductible premiums, cover on a director planning to retire in ten years would run no longer than that. The cover is reviewed as the business grows, as loans are drawn or repaid and as the person's role changes, because the loss it measures moves with them.

**Q: What is insurable interest in key person insurance?**

faq-id: what-is-insurable-interest-in-key-person-insurance

Insurable interest is the financial stake a business must have in the life of the person it insures. The Life Assurance Act 1774 makes a life policy void where the person it benefits has no interest in the life insured, and limits what can be recovered to the value of that interest ([legislation.gov.uk: Life Assurance Act 1774](https://www.legislation.gov.uk/apgb/Geo3/14/48/section/1)). For key person cover, the interest is the money the business would lose if the person died, which is why insurers ask for accounts and details of the role, and why the sum assured is limited to what the evidence supports.

**Q: Can a partnership or LLP take out key person insurance?**

faq-id: can-a-partnership-or-llp-take-out-key-person-insurance

Yes. A partnership or limited liability partnership can take out key person cover on a partner, member or employee whose loss would cost the firm money, sized in the same way on lost profit, replacement cost or borrowing. For Income Tax, partners share the profits and each pays tax on their share, and an LLP carrying on a business for profit is treated in the same way, so a taxable payout falls into the partners' or members' profit shares ([GOV.UK: set up a business partnership](https://www.gov.uk/set-up-business-partnership)). How the policy is owned, and its tax treatment, are set up with the insurer and the firm's accountant.

**Q: What does a business have to tell the insurer for key person cover?**

faq-id: what-does-a-business-have-to-tell-the-insurer-for-key-person-cover

A business taking out key person cover must make a fair presentation of the risk under the Insurance Act 2015: it discloses every material circumstance it knows or ought to know, or enough to put a prudent insurer on notice to ask more, and its statements of fact must be substantially correct ([legislation.gov.uk: Insurance Act 2015, section 3](https://www.legislation.gov.uk/ukpga/2015/4/section/3)). The consumer disclosure rules do not apply to a business policyholder. The key person also answers the insurer's health and lifestyle questions.

If the presentation is unfair, the insurer can reduce a claim, change the terms or, if it would not have offered cover at all, avoid the policy and return the premiums; for a deliberate or reckless breach, it can avoid the policy and keep the premiums.

**Q: Is key person insurance the same as life insurance?**

faq-id: is-key-person-insurance-the-same-as-life-insurance

Key person insurance is a form of life insurance, usually term cover, bought for a business purpose. The business is the policyholder, pays the premiums and receives the payout, and the sum assured is justified by the business's financial loss rather than a family's needs. A personal life policy pays the person's family or estate instead. A director who wants cover for their own family needs personal life insurance or a relevant life policy alongside key person cover, because the key person policy pays nothing to the family.

**Q: Do lenders require key person insurance for a commercial mortgage?**

faq-id: do-lenders-require-key-person-insurance-for-a-commercial-mortgage

Some business lenders make cover on a key person a condition of a facility and others do not. It varies by lender and by case, often depending on how much the business and the loan rely on one or two directors. Where a director has given a personal guarantee, key person loan protection sized to the borrowing lets the business repay or restructure the loan if that director dies or becomes seriously ill. The cover's term follows the loan, and its tax treatment is confirmed with the business's accountant.

**Q: Can I get life insurance if I have been declined?**

faq-id: can-i-get-life-insurance-if-i-have-been-declined

You may still be able to get life insurance after a decline. Each insurer underwrites with its own guidelines and reinsurance arrangements, so a condition one insurer declines, another may accept at standard terms, with a higher premium, with an exclusion or after a postponement. Start by asking the insurer for the reason and gathering your medical details, such as the diagnosis dates, the treatment and recent results. Researching underwriting anonymously before reapplying means the next full application goes to an insurer whose approach fits, which reduces the chance of adding further declines that later application forms may ask about. Where individual cover is not available, workplace death-in-service benefit and guaranteed acceptance plans can still provide some protection.

**Q: Why was my life insurance application declined?**

faq-id: why-was-my-life-insurance-application-declined

A life insurance application can be declined because of a medical condition, a recent diagnosis or an investigation still in progress, or an occupation, pursuit or travel the insurer does not cover. Each insurer judges the risk with its own underwriting guidelines, so the same facts can lead to different decisions at different insurers. You can ask the insurer for the reason, and MoneyHelper's guidance is that insurers should explain why they have refused cover ([MoneyHelper: buying insurance if you are ill or disabled](https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/buying-insurance-if-youre-ill-or-disabled)). The reason helps identify insurers likely to accept, and shows whether waiting for test results or a longer period of stability could change the answer.

**Q: Does a decline from one insurer mean all will decline?**

faq-id: does-a-decline-from-one-insurer-mean-all-will-decline

No. Each insurer assesses risk with its own underwriting guidelines and reinsurance arrangements, so one insurer may decline a condition that another accepts at standard terms, with a loading or with an exclusion, or postpones until the condition has been stable for longer. MoneyHelper notes that criteria and approaches can vary significantly between insurers, and that there are advisers and brokers who specialise in finding insurance for people with medical conditions. Specialist underwriting research describes the case to insurers' underwriters anonymously before a full application is made, to identify those whose approach to the condition differs.

**Q: Will reapplying after a decline affect my chances?**

faq-id: will-reapplying-after-a-decline-affect-my-chances

Repeated full applications after a decline can make cover harder to find, because application forms can ask whether you have been declined, postponed or offered special terms before, and you must answer accurately. Each further full application that ends in a decline becomes another one to disclose. Anonymous underwriting research tests the case with insurers before a new application, so the full application goes to an insurer that has indicated it would consider it. Reapplying to the same insurer before its postponement or stability period has passed is likely to bring the same answer, so when you reapply matters as much as where.

**Q: Do I have to disclose a previous decline?**

faq-id: do-i-have-to-disclose-a-previous-decline

Yes, if the application form asks about it. Forms can ask whether you have previously been declined, postponed or offered special terms, and you must answer the insurer's questions accurately. Under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to make a misrepresentation ([legislation.gov.uk: CIDRA 2012, section 2](https://www.legislation.gov.uk/ukpga/2012/6/section/2)). A careless or deliberate misrepresentation can lead to a claim being reduced or refused: a deliberate or reckless one lets the insurer avoid the policy, and for a careless one the remedy depends on what the insurer would have done with the right answer. The Act applies across the UK.

**Q: What is a postponed life insurance application?**

faq-id: what-is-a-postponed-life-insurance-application

A postponed application is one the insurer will not decide on until a set period has passed, for example because tests are pending, an investigation is still under way or treatment is recent. It is not a decline: the insurer may reconsider once results are known or the condition has been stable for the period it sets, and a new application may then bring a decision at standard terms or with a loading or an exclusion. The length of a postponement differs between insurers and conditions, and another insurer may be able to decide sooner, so it can be worth testing the case with other underwriters while you wait.

**Q: Can I get life insurance after cancer?**

faq-id: can-i-get-life-insurance-after-cancer

Life insurance after cancer may be available, depending on the type and stage of the cancer, the treatment and the time since treatment ended. Some insurers postpone for a period after treatment and then offer terms, sometimes with a loading or an exclusion, and the period differs between insurers and between cancers. A cancer found early and fully treated some time ago is assessed differently from a recent or more advanced one. Before any new application, gather your treatment dates, the specialist's letters and confirmation of the all-clear, and research underwriting first so the full application goes to an insurer whose approach fits.

**Q: What is guaranteed acceptance life insurance?**

faq-id: what-is-guaranteed-acceptance-life-insurance

Guaranteed acceptance life insurance, often sold as over-50s plans, accepts applicants in its age range, usually 50 to 85, without health questions and pays a fixed sum on death. The premium is fixed, but the payout does not keep up with rising prices, and someone who starts a plan in their 50s and lives to 80 or above can pay in much more than it pays out.

Apart from the 30-day cancellation period ([FCA Handbook: ICOBS 7.1](https://handbook.fca.org.uk/handbook/ICOBS/7/1.html)), money comes back only through a claim. Plans set a waiting period before full cover starts, during which they may pay the full sum only for an accidental death ([MoneyHelper: life insurance for over 50s](https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/over-50s-life-insurance-is-it-worth-it)). Ordinary cover may be cheaper even with a health condition, so compare it first.

**Q: What is a premium loading?**

faq-id: what-is-a-premium-loading

A premium loading is an increase to the standard premium that an insurer applies to accept a higher risk, such as a medical condition or a hazardous occupation. With a loading the insurer covers the condition, where an exclusion would remove claims arising from it. Different insurers load the same condition differently, so comparing underwriting decisions can reduce the cost. Each insurer sets a loading for each applicant after underwriting, and it is shown in the terms offered before you accept, so you can weigh it against an exclusion, a smaller sum or a different term with another insurer.

**Q: What is an exclusion on a life insurance policy?**

faq-id: what-is-an-exclusion-on-a-life-insurance-policy

An exclusion is a term under which the insurer accepts the application but will not pay a claim arising from a specified cause, such as a particular condition or a hazardous pursuit. The policy covers other causes of death as normal. An exclusion can keep the premium at standard rates, but it leaves a gap where the risk is highest: a policy that excludes a heart condition pays nothing if death results from it, which matters on cover meant to repay a mortgage. MoneyHelper notes that some insurers offer life cover with an exclusion for a disability, paying out unless death results from that disability ([MoneyHelper: buying insurance if you are ill or disabled](https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/buying-insurance-if-youre-ill-or-disabled)).

**Q: Does workplace death-in-service count as life insurance?**

faq-id: does-workplace-death-in-service-count-as-life-insurance

Yes. Workplace death-in-service benefit is life cover provided through an employer, paying a lump sum linked to salary, often three to four times it, if you die while employed there ([MoneyHelper: life insurance for over 50s](https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/over-50s-life-insurance-is-it-worth-it)). Group schemes can cover members up to a free cover limit without individual medical evidence, so workplace cover can still provide protection after a decline. It ends if you leave the job, so it rarely replaces personal cover for a mortgage, which needs to last for the mortgage term whoever you work for. Check what your employment package already includes before deciding how much personal cover to arrange.

**Q: Can an insurer ask for my genetic test results?**

faq-id: can-an-insurer-ask-for-my-genetic-test-results

Under the Code on Genetic Testing and Insurance, an agreement between the government and the Association of British Insurers, insurers will not require or pressure you to take a predictive or diagnostic genetic test, and will not ask for or take into account a predictive test result, except for Huntington's disease on life cover above £500,000 where you have had a predictive test for it ([GOV.UK: Code on Genetic Testing and Insurance](https://www.gov.uk/government/publications/code-on-genetic-testing-and-insurance)).

You can choose to disclose a favourable predictive result, for example to offset a family history, and the insurer can take it into account. Diagnostic test results for symptoms you already have must be disclosed if asked. Results obtained only through a research study do not need to be disclosed.

**Q: What should I do after being declined for life insurance?**

faq-id: what-should-i-do-after-being-declined-for-life-insurance

Ask the insurer for the reason, keep the decision letter, gather your medical details and avoid rushing into another full application. Insurers should explain why they refused cover, and the reason shapes which insurers to approach. Document the diagnosis, dates, treatment and recent results, then research underwriting anonymously so a new application goes to an insurer whose approach fits. Consider changing the cover, such as single rather than joint policies or decreasing cover matched to a repayment mortgage, and keep any cover you already hold. If you think the insurer acted unfairly, complain to it first and then, if needed, to the Financial Ombudsman Service.

**Q: Can I get life insurance after a heart attack?**

faq-id: can-i-get-life-insurance-after-a-heart-attack

Life insurance after a heart attack may be available, depending on the severity of the event, the treatment, such as a stent, and the time since. A recent heart attack can lead to a postponement or a decline, and specialist underwriting may find cover after a period of stability, sometimes with a loading. Gather your cardiology letters and recent test results before any new application. If a joint application was declined because of one partner's heart attack, two single policies let the other partner be underwritten separately, and decreasing cover matched to a repayment mortgage lowers the sum at risk over time.

**Q: Can I get life insurance with diabetes?**

faq-id: can-i-get-life-insurance-with-diabetes

Life insurance with diabetes may be available, because insurers assess type 1 and type 2 diabetes on how well the condition is controlled and on any complications. Recent HbA1c results showing steady control give an underwriter evidence to work from, and each insurer reads them against its own guidelines, so one may offer terms where another declines or adds a loading. A high body mass index is assessed on its level and on related conditions. Gather your recent results, your medication and any specialist letters, and research underwriting before making a full application.

**Q: Can I get life insurance with depression or anxiety?**

faq-id: can-i-get-life-insurance-with-depression-or-anxiety

A history of depression or anxiety does not by itself rule out life insurance. Insurers assess it on severity, treatment, time off work and any history of self-harm, and a mild to moderate history may be insurable, depending on the insurer and the details, while a recent severe episode can lead to a postponement or a decline. Insurers can apply exclusions or charge extra where they can show a greater risk of a claim ([MoneyHelper: buying insurance if you are ill or disabled](https://www.moneyhelper.org.uk/en/family-and-care/illness-and-disability/buying-insurance-if-youre-ill-or-disabled)). Answer the health questions fully, including about medication and time off work, because the duty to take reasonable care applies to mental health as to any condition.

**Q: Can I see my GP's report before it goes to the insurer?**

faq-id: can-i-see-my-gp-s-report-before-it-goes-to-the-insurer

Yes. In England, Wales and Scotland the Access to Medical Reports Act 1988 lets you tell the insurer, when you consent to it asking your doctor for a report, that you want to see the report first. The doctor must not send it until you have seen it or 21 days have passed without you arranging to ([legislation.gov.uk: Access to Medical Reports Act 1988, section 4](https://www.legislation.gov.uk/ukpga/1988/28/section/4)). You can ask in writing for errors to be corrected and, if the doctor will not change the report, for your own statement to be attached to it. In Northern Ireland the Access to Personal Files and Medical Reports (Northern Ireland) Order 1991 gives similar rights.

**Q: Can single policies help if one partner is declined for joint life cover?**

faq-id: can-single-policies-help-if-one-partner-is-declined-for-joint-life-cover

Yes. A joint policy is one contract covering two lives, so one partner's condition affects the whole application. Two single policies let each partner be underwritten separately: the healthy partner may be offered standard terms while the other partner's cover is researched with insurers whose approach to the condition fits. A joint policy is usually more affordable than two single policies but pays out only once, on the first death, while two single policies pay on each death ([MoneyHelper: what is life insurance](https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-life-insurance)). Decreasing cover matched to a repayment mortgage can also lower the sum at risk on the declined partner's policy.

### Mortgages

**Q: Can celebrities get mortgages?**

faq-id: mortgages-mortgages-for-celebrities-can-celebrities-get-mortgages

Celebrities can get mortgages, usually through specialist lenders and private banks that assess irregular, company-paid or overseas income, assets and future earnings individually, rather than relying on standard affordability models.

**Q: Why do celebrities struggle with mainstream lenders?**

faq-id: mortgages-mortgages-for-celebrities-why-do-celebrities-struggle-with-mainstream-lenders

Mainstream lenders' models rely on steady, documented income, while public figures' income is often irregular, paid through companies, earned abroad, or concentrated in a short career, which standard models struggle to assess.

**Q: How do lenders assess royalty income?**

faq-id: mortgages-mortgages-for-celebrities-how-do-lenders-assess-royalty-income

Lenders assess royalty income from statements and accounts over several years, often averaging because it varies. Specialist lenders may consider catalogue value and future royalties with supporting evidence. A royalty history of several years strengthens the case.

**Q: Can footballers get mortgages?**

faq-id: mortgages-mortgages-for-celebrities-can-footballers-get-mortgages

Professional footballers can get mortgages from specialist lenders and private banks that assess playing contracts, bonuses and image rights, taking account of contract length and the shorter career span of professional sport.

**Q: How are image rights treated?**

faq-id: mortgages-mortgages-for-celebrities-how-are-image-rights-treated

Income from image rights, often paid to an image rights company, can be assessed by specialist lenders using the company's accounts and contracts. Mainstream lenders may not count it. The contracts behind the payments are reviewed.

**Q: Can actors get mortgages with irregular income?**

faq-id: mortgages-mortgages-for-celebrities-can-actors-get-mortgages-with-irregular-income

Actors with irregular income can get mortgages from lenders that average fees over several years, use accounts from their personal service company, or assess wider assets. Agency letters and contracts support the case.

**Q: Can influencers get mortgages?**

faq-id: mortgages-mortgages-for-celebrities-can-influencers-get-mortgages

Influencers and content creators can get mortgages, usually assessed as self-employed on accounts or tax calculations, with specialist lenders more comfortable with platform income and brand deals. Two years of figures widens lender choice.

**Q: Can I get a mortgage with overseas income?**

faq-id: mortgages-mortgages-for-celebrities-can-i-get-a-mortgage-with-overseas-income

Some lenders accept income earned abroad or in foreign currency, converting it to sterling with a reduction for exchange-rate risk. Private banks are often more flexible with international income. Evidence of regular receipt is required.

**Q: Does a short career affect mortgage term?**

faq-id: mortgages-mortgages-for-celebrities-does-a-short-career-affect-mortgage-term

A short expected career, common in sport, can lead lenders to limit the term or loan, or to look for a repayment strategy based on assets accumulated during the career rather than future income.

**Q: Can income through my company be used?**

faq-id: mortgages-mortgages-for-celebrities-can-income-through-my-company-be-used

Income paid through a personal service, production or image rights company can be assessed using the company's accounts and your [salary and dividends](https://mortgagelane.com/definitions/2#def-dividend-income), or share of profit, depending on the lender.

**Q: What is a high net worth mortgage customer?**

faq-id: mortgages-mortgages-for-celebrities-what-is-a-high-net-worth-mortgage-customer

A high net worth mortgage customer has annual net income of at least £300,000 or net assets of at least £3 million, with the evidence required by the lender under the FCA rules. Lenders can apply modified rules to them under the [Financial Conduct Authority](https://mortgagelane.com/definitions/2#def-financial-conduct-authority)'s (FCA) framework.

**Q: What is private bank lending?**

faq-id: mortgages-mortgages-for-celebrities-what-is-private-bank-lending

Private bank lending is relationship-based finance for wealthy clients, assessing wider wealth, and often linked to investments or deposits placed with the bank. It suits complex income and large loans.

**Q: Do private banks require me to invest with them?**

faq-id: mortgages-mortgages-for-celebrities-do-private-banks-require-me-to-invest-with-them

Many private banks expect clients to place a level of assets under management with them as part of the relationship, though requirements vary. The total package is compared with specialist lenders that do not.

**Q: Are celebrity mortgages usually interest-only?**

faq-id: mortgages-mortgages-for-celebrities-are-celebrity-mortgages-usually-interest-only

Interest-only is common for high-value lending to public figures, with repayment planned from investments, other assets or the property's sale, because it suits lumpy income and wealth held in assets.

**Q: Can a mortgage be arranged discreetly?**

faq-id: mortgages-mortgages-for-celebrities-can-a-mortgage-be-arranged-discreetly

A mortgage can be arranged with confidential handling — limited circulation of documents and names, and contact through advisers. However, ownership of registered property is recorded at HM Land Registry, where title registers are public.

**Q: Will my name appear on public records?**

faq-id: mortgages-mortgages-for-celebrities-will-my-name-appear-on-public-records

If you own a property in your own name, HM Land Registry's title register, which is publicly available, will show it. Different ownership structures change what is public but carry tax and legal consequences.

**Q: Can I buy a home through a company for privacy?**

faq-id: mortgages-mortgages-for-celebrities-can-i-buy-a-home-through-a-company-for-privacy

Buying a home through a company can change what appears publicly, but companies buying residential property over £500,000 can face a 17% [Stamp Duty Land Tax (SDLT)](https://mortgagelane.com/definitions/5#def-stamp-duty-land-tax) rate in England and Northern Ireland and the Annual Tax on Enveloped Dwellings (ATED) unless reliefs apply. Advice is essential.

**Q: Can my manager or accountant deal with the broker?**

faq-id: mortgages-mortgages-for-celebrities-can-my-manager-or-accountant-deal-with-the-broker

Your manager, agent or accountant can deal with the broker on your behalf with your authority, which keeps your involvement and the number of people who know limited, while you still sign the application.

**Q: How large a mortgage can a celebrity get?**

faq-id: mortgages-mortgages-for-celebrities-how-large-a-mortgage-can-a-celebrity-get

Large mortgages are available from specialist lenders and private banks, assessed individually on income, assets and the property. The amount depends on the lender's view of sustainable income or the assets supporting the loan.

**Q: Can I remortgage to raise funds against my home?**

faq-id: mortgages-mortgages-for-celebrities-can-i-remortgage-to-raise-funds-against-my-home

Public figures can remortgage to raise capital for purchases, investments or business ventures, assessed on income or assets. Private banks often provide flexible facilities secured on property alongside investments. The purpose is disclosed to the lender.

**Q: What is a country house mortgage?**

faq-id: mortgages-country-house-mortgages-what-is-a-country-house-mortgage

A country house mortgage is a residential mortgage on a rural home with features such as land, outbuildings, listed status, private services or occupancy conditions, arranged with lenders that accept those features.

**Q: Why do some lenders decline country houses?**

faq-id: mortgages-country-house-mortgages-why-do-some-lenders-decline-country-houses

Some lenders decline country houses because of large acreage, commercial use of outbuildings, listed status, private drainage or water, agricultural occupancy conditions, or limited [comparable sales](https://mortgagelane.com/definitions#def-comparable-evidence) that make valuation and resale harder.

**Q: How much land can a mortgage cover?**

faq-id: mortgages-country-house-mortgages-how-much-land-can-a-mortgage-cover

Lenders limit the land they will lend on with a house, and may disregard or lend less on additional acreage. Specialist and private lenders accept more, and agricultural lenders can fund larger areas.

**Q: Can I get a mortgage on a house with acres of land?**

faq-id: mortgages-country-house-mortgages-can-i-get-a-mortgage-on-a-house-with-acres-of-land

You can, often by combining a residential mortgage on the house and limited land with an agricultural mortgage or cash for the remaining acreage, or by using a lender that accepts larger holdings.

**Q: Can I get a mortgage on an equestrian property?**

faq-id: mortgages-country-house-mortgages-can-i-get-a-mortgage-on-an-equestrian-property

Equestrian properties with stables, paddocks and arenas can be mortgaged with lenders that accept them for private use. Commercial liveries or riding schools may need commercial or mixed-use lending. Planning use for the facilities is checked.

**Q: Are outbuildings a problem for mortgages?**

faq-id: mortgages-country-house-mortgages-are-outbuildings-a-problem-for-mortgages

Outbuildings are usually accepted for domestic use, but commercial use, large barns or buildings with separate planning uses can affect lender choice and valuation, and may need separate assessment. Their planning status is checked by the conveyancer.

**Q: Can I mortgage a house with holiday cottages?**

faq-id: mortgages-country-house-mortgages-can-i-mortgage-a-house-with-holiday-cottages

A house with holiday cottages can be mortgaged with lenders that accept the letting business, sometimes splitting the cottages onto a holiday-let or [commercial mortgage](https://mortgagelane.com/definitions#def-commercial-mortgage). The letting income and planning use are reviewed.

**Q: How are country houses valued?**

faq-id: mortgages-country-house-mortgages-how-are-country-houses-valued

Country houses are valued by specialist valuers who separate the house from the land and any business, using limited comparable sales, so valuations involve more judgement than standard homes. Choosing lenders that use rural specialists helps.

**Q: Can I get a mortgage on a listed building?**

faq-id: mortgages-country-house-mortgages-can-i-get-a-mortgage-on-a-listed-building

Listed buildings are mortgageable with many lenders, with Grade I, thatched and unusual construction considered case by case. Repairs must use appropriate materials, which affects insurance and maintenance costs. A specialist survey is advisable before buying.

**Q: Do septic tanks affect a mortgage?**

faq-id: mortgages-country-house-mortgages-do-septic-tanks-affect-a-mortgage

Septic tanks must comply with the Environment Agency's general binding rules in England; systems discharging directly to a watercourse needed upgrading or replacing, and responsibility can arise on sale. Lenders and conveyancers check compliance.

**Q: Does a private water supply affect a mortgage?**

faq-id: mortgages-country-house-mortgages-does-a-private-water-supply-affect-a-mortgage

A private water supply is acceptable to most lenders where it is tested for quality and sufficiency and any rights to take water are documented. The conveyancer and surveyor check the supply.

**Q: What is an agricultural occupancy condition?**

faq-id: mortgages-country-house-mortgages-what-is-an-agricultural-occupancy-condition

An agricultural occupancy condition is a planning restriction limiting who may live in a property, usually to people working in agriculture. It narrows the buyer pool and lender choice and can reduce value.

**Q: Can I get a mortgage on a property with an agricultural tie?**

faq-id: mortgages-country-house-mortgages-can-i-get-a-mortgage-on-a-property-with-an-agricultural-tie

Some lenders lend on properties with agricultural occupancy conditions, often at lower loan-to-values, provided the buyer can lawfully occupy the home and the valuation reflects the restriction. Choice is narrower than for unrestricted homes.

**Q: Do rights of way affect a country house mortgage?**

faq-id: mortgages-country-house-mortgages-do-rights-of-way-affect-a-country-house-mortgage

Public rights of way and shared access are checked by the conveyancer and valuer. They rarely stop a mortgage but can affect value and privacy, and unclear access can concern lenders.

**Q: Is flood risk a concern for rural homes?**

faq-id: mortgages-country-house-mortgages-is-flood-risk-a-concern-for-rural-homes

Flood risk affects insurance and lending, so lenders and surveyors check flood history and maps. Homes built before 2009 may benefit from Flood Re for insurance, which helps lenders accept them.

**Q: Can business income from the land help my mortgage?**

faq-id: mortgages-country-house-mortgages-can-business-income-from-the-land-help-my-mortgage

Income from holiday lets, liveries or farming can support a mortgage where lenders accept it, usually evidenced by accounts. Some lenders separate the business onto commercial or holiday-let lending. Two years of trading figures is typical.

**Q: Can I get an agricultural mortgage for the land?**

faq-id: mortgages-country-house-mortgages-can-i-get-an-agricultural-mortgage-for-the-land

Agricultural mortgages from specialist farm lenders can fund land and farm buildings, sometimes over long terms, and can sit alongside a residential mortgage on the house where acreage exceeds residential limits.

**Q: What Stamp Duty applies to a house with land?**

faq-id: mortgages-country-house-mortgages-what-stamp-duty-applies-to-a-house-with-land

Residential Stamp Duty Land Tax (SDLT) applies where land is the home's garden or grounds. Mixed-use rates apply only where part of the land is genuinely not grounds, such as a commercially run farm, and [HM Revenue and Customs (HMRC)](https://mortgagelane.com/definitions/2#def-hm-revenue-and-customs) challenges weak claims.

**Q: Can I claim mixed-use Stamp Duty on a country house?**

faq-id: mortgages-country-house-mortgages-can-i-claim-mixed-use-stamp-duty-on-a-country-house

You may claim mixed-use Stamp Duty Land Tax (SDLT) only where part of the property is genuinely non-residential, such as land used for a separate commercial farming business. Tax advice is essential, because incorrect claims bring tax, interest and penalties.

**Q: Do private banks lend on country houses?**

faq-id: mortgages-country-house-mortgages-do-private-banks-lend-on-country-houses

Private banks lend on high-value country houses for wealthy clients, often with more flexibility on land, unusual features and interest-only structures, assessing wider wealth alongside the property. They usually expect a wider banking relationship.

**Q: What is a new build mortgage?**

faq-id: guides-residential-new-build-mortgages-what-is-a-new-build-mortgage

A new build mortgage is a residential mortgage on a newly built or converted home sold for the first time, assessed like any mortgage but subject to lender rules on new build loan-to-values, incentives, warranties and how long the offer lasts.

**Q: How much deposit do I need for a new build?**

faq-id: guides-residential-new-build-mortgages-how-much-deposit-do-i-need-for-a-new-build

Some lenders lend up to 95% on new build houses, so a 5% deposit can be enough, while new build flats are often capped at lower loan-to-values, needing a larger deposit. Lender policies vary.

**Q: Why do lenders restrict new build flats?**

faq-id: guides-residential-new-build-mortgages-why-do-lenders-restrict-new-build-flats

Lenders restrict new build flats because of concentration risk in large blocks, the new-build premium and resale values. Many cap the loan-to-value lower than for new build houses or resale flats.

**Q: Is Help to Buy still available?**

faq-id: guides-residential-new-build-mortgages-is-help-to-buy-still-available

England’s Help to Buy equity loan scheme closed to new applications on 31 October 2022. Schemes elsewhere in the UK differ. Current routes for new build buyers include standard 95% mortgages, shared ownership, discounted section 106 homes and developer or industry schemes where available.

**Q: Can first-time buyers get new build mortgages?**

faq-id: guides-residential-new-build-mortgages-can-first-time-buyers-get-new-build-mortgages

First-time buyers can get new build mortgages, often with 5% deposits on houses, and may use shared ownership or discounted section 106 homes. First-time buyer Stamp Duty Land Tax (SDLT) relief applies as for other homes.

**Q: How do developer incentives affect my mortgage?**

faq-id: guides-residential-new-build-mortgages-how-do-developer-incentives-affect-my-mortgage

Lenders require developer incentives to be disclosed and cap them as a percentage of the price; incentives above the cap are deducted from the price the lender lends against, which can increase the deposit you need.

**Q: What is the Disclosure of Incentives Form?**

faq-id: guides-residential-new-build-mortgages-what-is-the-disclosure-of-incentives-form

The Disclosure of Incentives Form is a UK Finance standard form completed by the developer, setting out the price and every incentive offered, so the lender and valuer can assess the true price of the new home.

**Q: Do cashback and paid fees count as incentives?**

faq-id: guides-residential-new-build-mortgages-do-cashback-and-paid-fees-count-as-incentives

Cashback, paid legal fees, Stamp Duty contributions, furniture packs and similar offers all count as incentives and must be disclosed. Lenders treat them as reducing the effective price. Undisclosed incentives can lead to a withdrawn offer.

**Q: Is part exchange treated as an incentive?**

faq-id: guides-residential-new-build-mortgages-is-part-exchange-treated-as-an-incentive

Part exchange, where the developer buys your existing home, is disclosed to the lender, and any amount above your home's [market value](https://mortgagelane.com/definitions/3#def-open-market-value) may be treated as an incentive affecting the price lent against.

**Q: Why are new builds often down-valued?**

faq-id: guides-residential-new-build-mortgages-why-are-new-builds-often-down-valued

New homes often include a premium over comparable resales, and valuers base their figure on [comparable sales](https://mortgagelane.com/definitions#def-comparable-evidence) rather than the developer's price list, so valuations can come in below the price.

**Q: What warranty does a new build need for a mortgage?**

faq-id: guides-residential-new-build-mortgages-what-warranty-does-a-new-build-need-for-a-mortgage

Lenders usually require a recognised ten-year new home warranty. Some accept a professional consultant’s certificate, which offers different protection and is not a substitute accepted by every lender. The conveyancer checks the warranty cover note before completion.

**Q: What is the New Homes Quality Code?**

faq-id: guides-residential-new-build-mortgages-what-is-the-new-homes-quality-code

The New Homes Quality Code sets standards for registered developers' sales, build quality and after-sales service, with complaints handled by the New Homes Ombudsman Service where developers are registered. Buyers should check whether their developer is registered.

**Q: Should I get a snagging survey?**

faq-id: guides-residential-new-build-mortgages-should-i-get-a-snagging-survey

A snagging survey identifies defects before or soon after completion so the developer can fix them under its obligations. It is separate from the [mortgage valuation](https://mortgagelane.com/definitions/3#def-mortgage-valuation), which does not inspect for defects.

**Q: How long does a new build mortgage offer last?**

faq-id: guides-residential-new-build-mortgages-how-long-does-a-new-build-mortgage-offer-last

Mortgage offers usually last around six months, and some lenders offer longer or extensions. If the build runs late, an offer can expire before completion, so lender choice matters for off-plan purchases.

**Q: What happens if my offer expires before completion?**

faq-id: guides-residential-new-build-mortgages-what-happens-if-my-offer-expires-before-completion

If an offer expires before completion, the lender may extend it, sometimes with fresh checks, or a new application may be needed. After exchange you are bound to complete, so expiry is planned for early.

**Q: Can I buy a new build off-plan with a mortgage?**

faq-id: guides-residential-new-build-mortgages-can-i-buy-a-new-build-off-plan-with-a-mortgage

You can buy off-plan with a mortgage, exchanging before the home is finished, but completion may be many months away. Choosing a lender with a long offer validity, or planning to reapply, avoids gaps.

**Q: How long do I have to exchange on a new build?**

faq-id: guides-residential-new-build-mortgages-how-long-do-i-have-to-exchange-on-a-new-build

Developers usually set a deadline to exchange after reservation, often around 28 days, which requires a mortgage offer quickly. Having a [decision in principle](https://mortgagelane.com/definitions#def-agreement-in-principle) before reserving helps meet it. Missing it can mean losing the reservation.

**Q: What is a notice to complete on a new build?**

faq-id: guides-residential-new-build-mortgages-what-is-a-notice-to-complete-on-a-new-build

Once the home is finished, the developer serves notice to complete, typically giving about ten working days. Your mortgage offer and funds must be ready to complete within that period.

**Q: Do I pay Stamp Duty on a new build?**

faq-id: guides-residential-new-build-mortgages-do-i-pay-stamp-duty-on-a-new-build

Stamp Duty Land Tax (SDLT) applies to new builds on the same bands as other homes, including first-time buyer relief, and is charged on the price paid. Developer contributions to Stamp Duty are incentives that must be disclosed.

**Q: Can I get a buy to let mortgage on a new build?**

faq-id: guides-residential-new-build-mortgages-can-i-get-a-buy-to-let-mortgage-on-a-new-build

[Buy to let](https://mortgagelane.com/definitions#def-buy-to-let-mortgage) mortgages are available on new builds, with some lenders restricting new build flats or capping loan-to-value. Rent is assessed on achievable market rent for the new home.

**Q: What is a part and part mortgage?**

faq-id: mortgages-part-and-part-mortgages-what-is-a-part-and-part-mortgage

A part and part mortgage splits one loan into a repayment portion, paid down over the term, and an interest-only portion, where only interest is paid and the capital is repaid at the end from another source such as the sale of the property or investments.

**Q: Is part and part the same as a split mortgage?**

faq-id: mortgages-part-and-part-mortgages-is-part-and-part-the-same-as-a-split-mortgage

Part and part, split and combination mortgages are names for the same structure: one mortgage with a repayment part and an interest-only part, with the product and rate arrangements confirmed by the lender. The split between the two parts is agreed at the outset.

**Q: Why choose a part and part mortgage?**

faq-id: mortgages-part-and-part-mortgages-why-choose-a-part-and-part-mortgage

A part and part mortgage lowers monthly payments compared with full repayment, while reducing the balance left at the end compared with full interest-only. It suits borrowers with a credible plan to repay part of the loan from assets.

**Q: What repayment strategies do lenders accept?**

faq-id: mortgages-part-and-part-mortgages-what-repayment-strategies-do-lenders-accept

Lenders commonly accept the sale of the property, investments such as Individual Savings Accounts (ISAs), pension tax-free cash, the sale of other property, or other assets, each with evidence. Accepted strategies and thresholds vary by lender.

**Q: Can I use the sale of my home as the repayment strategy?**

faq-id: mortgages-part-and-part-mortgages-can-i-use-the-sale-of-my-home-as-the-repayment-strategy

Many lenders accept sale of the property as the strategy for the interest-only part, provided you meet minimum equity or property value levels, so that selling would repay the debt and leave enough to buy another home.

**Q: Can I use my pension to repay the interest-only part?**

faq-id: mortgages-part-and-part-mortgages-can-i-use-my-pension-to-repay-the-interest-only-part

Some lenders accept pension tax-free cash as a repayment strategy, with evidence of the pension's value and projected lump sum. Others do not, because the value and access can change.

**Q: Can investments be my repayment strategy?**

faq-id: mortgages-part-and-part-mortgages-can-investments-be-my-repayment-strategy

Investments such as Individual Savings Accounts (ISAs), unit trusts or shares can be accepted as a repayment strategy, with evidence of current value and contributions. Lenders may check the strategy periodically during the term.

**Q: Do lenders check my repayment strategy during the term?**

faq-id: mortgages-part-and-part-mortgages-do-lenders-check-my-repayment-strategy-during-the-term

Many lenders contact interest-only borrowers during the term to confirm the repayment strategy is on track, and the [Financial Conduct Authority (FCA)](https://mortgagelane.com/definitions/2#def-financial-conduct-authority) expects lenders to engage with borrowers whose plans may fall short.

**Q: What happens if my repayment strategy falls short?**

faq-id: mortgages-part-and-part-mortgages-what-happens-if-my-repayment-strategy-falls-short

If the strategy falls short, options include overpaying, converting more of the loan to repayment, extending the term where possible, or selling the property. Acting early gives more options. Your lender will discuss the options with you.

**Q: How much of the loan can be interest-only?**

faq-id: mortgages-part-and-part-mortgages-how-much-of-the-loan-can-be-interest-only

Lenders cap the interest-only portion, often at a lower loan-to-value than the overall mortgage, and the cap may depend on the repayment strategy and income. The rest of the loan must be on repayment.

**Q: Is there a minimum income for part and part?**

faq-id: mortgages-part-and-part-mortgages-is-there-a-minimum-income-for-part-and-part

Some lenders set a minimum income for interest-only lending, including the interest-only part of a part and part mortgage, while others do not. [Affordability](https://mortgagelane.com/definitions#def-affordability) is assessed on the combined payment.

**Q: Is there a minimum equity requirement?**

faq-id: mortgages-part-and-part-mortgages-is-there-a-minimum-equity-requirement

Lenders accepting sale of the property as a strategy usually require minimum equity or a minimum property value, to show that selling would clear the debt and leave enough for another home.

**Q: How is affordability assessed on part and part?**

faq-id: mortgages-part-and-part-mortgages-how-is-affordability-assessed-on-part-and-part

Affordability is assessed on the combined monthly payment — [capital and interest](https://mortgagelane.com/definitions/4#def-repayment-mortgage) on the repayment part plus interest on the interest-only part — at the lender's [stressed rate](https://mortgagelane.com/definitions/4#def-rental-stress-test), under the Financial Conduct Authority's (FCA) rules.

**Q: Is part and part cheaper than repayment?**

faq-id: mortgages-part-and-part-mortgages-is-part-and-part-cheaper-than-repayment

Part and part has lower monthly payments than full repayment, but costs more in total interest, because interest is charged on the interest-only capital for the whole term, and that capital must still be repaid.

**Q: Is part and part better than interest-only?**

faq-id: mortgages-part-and-part-mortgages-is-part-and-part-better-than-interest-only

Part and part leaves less to repay at the end than full interest-only and usually needs a smaller repayment strategy, at the cost of higher monthly payments. It reduces the risk of a large shortfall.

**Q: Can I overpay a part and part mortgage?**

faq-id: mortgages-part-and-part-mortgages-can-i-overpay-a-part-and-part-mortgage

Most part and part mortgages allow overpayments within the lender's limits, which can be applied to reduce the interest-only part and the balance owed at the end. Overpaying early has the largest effect on interest.

**Q: Can I change the split later?**

faq-id: mortgages-part-and-part-mortgages-can-i-change-the-split-later

Many lenders allow you to move more of the loan from interest-only to repayment during the term, which raises payments but reduces the end balance. Moving the other way usually needs a new assessment.

**Q: Can I remortgage from interest-only to part and part?**

faq-id: mortgages-part-and-part-mortgages-can-i-remortgage-from-interest-only-to-part-and-part

[Remortgaging](https://mortgagelane.com/definitions/4#def-remortgage) from full interest-only to part and part reduces the balance outstanding at the end and is a common step for borrowers whose strategy no longer covers the whole loan. Affordability is assessed on the new payment.

**Q: Is part and part available on buy to let?**

faq-id: mortgages-part-and-part-mortgages-is-part-and-part-available-on-buy-to-let

Most buy to let mortgages are interest-only, so part and part is less common, though some lenders offer partial repayment. The rental stress test usually applies to the interest-only basis.

**Q: Can older borrowers get part and part mortgages?**

faq-id: mortgages-part-and-part-mortgages-can-older-borrowers-get-part-and-part-mortgages

Older borrowers can get part and part mortgages where the term fits the lender's age limits and the strategy is credible; retirement [interest-only mortgages](https://mortgagelane.com/definitions/3#def-interest-only-mortgage) are an alternative for some later-life borrowers.

**Q: What is a prime postcode mortgage?**

faq-id: mortgages-prime-postcode-mortgages-what-is-a-prime-postcode-mortgage

A prime postcode mortgage is a large mortgage on a high-value home in a sought-after location, such as prime London, typically underwritten individually by private banks, specialist lenders or mainstream lenders' high-value teams.

**Q: How large a mortgage can I get on a prime property?**

faq-id: mortgages-prime-postcode-mortgages-how-large-a-mortgage-can-i-get-on-a-prime-property

Large mortgages running into millions are available, assessed individually on income, assets and the property. The maximum depends on the lender's view of [affordability](https://mortgagelane.com/definitions#def-affordability) or of the assets supporting the loan.

**Q: What loan-to-value is available on large mortgages?**

faq-id: mortgages-prime-postcode-mortgages-what-loan-to-value-is-available-on-large-mortgages

Lenders usually offer lower maximum loan-to-values as loan size increases, so large prime mortgages often need larger deposits than standard mortgages. Thresholds vary by lender and are assessed case by case.

**Q: Are prime mortgages usually interest-only?**

faq-id: mortgages-prime-postcode-mortgages-are-prime-mortgages-usually-interest-only

Interest-only is common on prime mortgages for borrowers with substantial assets, with repayment planned from investments, other property or sale, though repayment and part and part are also available. The strategy is evidenced at application.

**Q: How is bonus and complex income assessed?**

faq-id: mortgages-prime-postcode-mortgages-how-is-bonus-and-complex-income-assessed

Specialist and private lenders assess bonuses, carried interest, partnership profits and other complex income individually, often averaging over several years and considering future entitlements and assets. Employer or accountant letters support the figures.

**Q: Do lenders treat high-value property differently?**

faq-id: mortgages-prime-postcode-mortgages-do-lenders-treat-high-value-property-differently

Lenders apply individual underwriting, specialist valuation and lower loan-to-values to high-value property, and some set maximum exposure per borrower or per property, because the market for such homes is smaller.

**Q: What is a private bank mortgage?**

faq-id: mortgages-prime-postcode-mortgages-what-is-a-private-bank-mortgage

A [private bank mortgage](https://mortgagelane.com/definitions/4#def-private-bank-mortgage) is relationship lending for wealthy clients, assessing wider wealth and often linked to assets held with the bank, offering flexibility on structure and income that standard lenders may not.

**Q: What is a high net worth mortgage customer?**

faq-id: mortgages-prime-postcode-mortgages-what-is-a-high-net-worth-mortgage-customer

A high net worth mortgage customer has annual net income of at least £300,000 or net assets of at least £3 million, with the evidence required by the lender under the FCA rules. Lenders can apply modified rules to them under the [Financial Conduct Authority](https://mortgagelane.com/definitions/2#def-financial-conduct-authority)'s (FCA) framework.

**Q: Should I use a private bank or a specialist lender?**

faq-id: mortgages-prime-postcode-mortgages-should-i-use-a-private-bank-or-a-specialist-lender

Private banks suit clients wanting a wider relationship and willing to place assets; specialist lenders suit complex income without that requirement; high-street teams can be competitive for straightforward cases. Comparing all shows the best package.

**Q: Do private banks require assets under management?**

faq-id: mortgages-prime-postcode-mortgages-do-private-banks-require-assets-under-management

Many private banks expect a level of assets under management as part of the lending relationship, though some lend without it. The requirement affects the overall cost and is compared across lenders.

**Q: Can overseas buyers get prime mortgages?**

faq-id: mortgages-prime-postcode-mortgages-can-overseas-buyers-get-prime-mortgages

Overseas buyers can get prime mortgages from lenders that accept non-UK residents, assessed on income currency, residence, assets and the property. Private banks are often more flexible for international clients.

**Q: Do non-residents pay extra Stamp Duty?**

faq-id: mortgages-prime-postcode-mortgages-do-non-residents-pay-extra-stamp-duty

Non-UK resident buyers of residential property in England and Northern Ireland pay a 2% Stamp Duty Land Tax (SDLT) surcharge on top of other rates, including the 5% surcharge on additional dwellings where it applies.

**Q: Can I get a mortgage on foreign currency income?**

faq-id: mortgages-prime-postcode-mortgages-can-i-get-a-mortgage-on-foreign-currency-income

Some lenders accept income in foreign currencies, applying a reduction for exchange-rate risk, and some lend in other currencies. The currency mismatch between income and loan is considered in affordability.

**Q: Do overseas buyers need a UK bank account?**

faq-id: mortgages-prime-postcode-mortgages-do-overseas-buyers-need-a-uk-bank-account

Many lenders require a UK bank account for mortgage payments, and all apply identity and anti-money-laundering checks on the source of deposits and wealth, which take longer for international clients.

**Q: How much is Stamp Duty on a £3 million home?**

faq-id: mortgages-prime-postcode-mortgages-how-much-is-stamp-duty-on-a-3-million-home

Stamp Duty Land Tax (SDLT) on a £3 million main home in England is £273,750. For an additional home it is £423,750, and for a non-UK resident buying an additional home £483,750.

**Q: Why are prime homes hard to value?**

faq-id: mortgages-prime-postcode-mortgages-why-are-prime-homes-hard-to-value

Prime homes are often unique, with few recent comparable sales, so valuers rely on fewer data points and greater judgement. Lenders use specialist valuers, and valuations can differ from the agreed price.

**Q: Can I raise capital against a prime home?**

faq-id: mortgages-prime-postcode-mortgages-can-i-raise-capital-against-a-prime-home

You can remortgage or take a [further advance](https://mortgagelane.com/definitions/2#def-further-advance) on a prime home to raise capital for purchases, investments or family, assessed on income or assets, often on interest-only with private banks or specialist lenders.

**Q: Can I buy a prime home through a company?**

faq-id: mortgages-prime-postcode-mortgages-can-i-buy-a-prime-home-through-a-company

Companies buying residential property over £500,000 can face a 17% Stamp Duty Land Tax (SDLT) rate in England and Northern Ireland and the Annual Tax on Enveloped Dwellings (ATED) unless reliefs, such as for property rental businesses, apply. Advice is essential.

**Q: How long does a prime mortgage take?**

faq-id: mortgages-prime-postcode-mortgages-how-long-does-a-prime-mortgage-take

Prime mortgages take longer than standard mortgages because of individual underwriting, specialist valuation and enhanced anti-money-laundering checks, often several weeks. Starting early protects the purchase timetable. Overseas clients should allow longer for checks on the source of funds.

**Q: Can I get a buy to let mortgage on a prime property?**

faq-id: mortgages-prime-postcode-mortgages-can-i-get-a-buy-to-let-mortgage-on-a-prime-property

[Buy to let](https://mortgagelane.com/definitions#def-buy-to-let-mortgage) mortgages are available on prime properties, assessed on rent under the [Prudential Regulation Authority](https://mortgagelane.com/definitions/4#def-prudential-regulation-authority)'s (PRA) [stress tests](https://mortgagelane.com/definitions/4#def-rental-stress-test), though prime rental yields are often low, making the rental test harder to meet.

### Other

**Q: Can you get a regulated bridging loan in Northern Ireland?**

faq-id: can-you-get-a-regulated-bridging-loan-in-northern-ireland

Yes, but the options are limited. Fewer lenders operate in Northern Ireland than in the rest of the UK, and fewer still offer regulated bridging, often at higher rates. Where there is equity in another property, [bridging loan alternatives](https://mortgagelane.com/short-term-finance/alternatives-to-bridging-loans) such as a remortgage can be considerably cheaper.

**Q: Can you remortgage a mortgage-free second home to fund your next purchase?**

faq-id: can-you-remortgage-a-mortgage-free-second-home-to-fund-your-next-purchase

Yes, subject to the lender's criteria and your affordability. In this case, a high street bank lent £355,000 against a mortgage-free second home valued at £625,000, a 57% loan to value, to fund the purchase of a new home ahead of the client's sale.

**Q: Can you get a mortgage on an off-grid property?**

faq-id: can-you-get-a-mortgage-on-an-off-grid-property

Yes, though fewer lenders will consider one, and the choice narrows further if the property is also of non-standard construction. Lenders and their valuers look at how the property is powered and serviced and whether it will sell. Specialist advice on [non-standard construction mortgages](https://mortgagelane.com/mortgages/non-standard-construction-mortgages) helps match the property to a lender whose criteria fit.

No question on this page matches that.

Published: 2026-10-01

Last reviewed: 2026-10-01

Source: https://mortgagelane.com/faq/archive/14