Residential Mortgages

Residential Mortgage

Looking for a residential mortgage? Here you can find out what you need to know about getting a mortgage for your home.

What are residential mortgages?

Residential mortgages are loans that you take out to purchase a home, or refinance your existing mortgage. The lender will allow you to borrow money than you would otherwise have in order to buy a home, and then pay back the money over an extended period of time.

Residential mortgages are loans that are taken out on houses being used as the borrower’s primary residence. If you want to buy a property that isn’t your home, or if you’re using it for commercial purposes (i.e. letting), then what you need is a different kind of mortgages.

Some other types of mortgages are:

Residential mortgages are regulated by the Financial Conduct Authority so you should make sure your mortgage adviser is on the FCA register.


An expert mortgage adviser on the phone speaking to a customer

What is a Repayment Mortgage?

A repayment mortgage is a mortgage that requires the borrower to pay off the loan over time. The lender will give you a loan amount and a set amount of time that you have to pay it back; then, they will deduct monthly instalments from your account to pay back the loan along with interest. When you have paid off all of your debt, you own your home outright.

Repayment mortgages are one of the most common types of residential mortgages.

What is a Interest Only Mortgage?

An interest only mortgage is a type of loan where you pay the interest on your mortgage, but not the principal. This means that your loan balance will remain the same over time as you pay off only the interest.

Interest only mortgages can be ideal for those who want to save money on their monthly payments by paying less than they would on a traditional mortgage with principal and interest payments. It is important to always know how you plan to repay the mortgage though so unless you have a solid plan to do so, they may not be right. Always take advice on this subject.


At any point during your mortgage, you’ll be able to apply to switch to a new one if you so desire – if you think you could benefit from better interest rates for example.

You’ll most likely face charges for doing so but it can sometimes be worth it given the potential savings in the long run. Speak to a mortgage adviser if you want to do this so that they can work out exactly what it will cost you.

It’s possible that your circumstances may change over time and that could mean your current mortgage is no longer suitable for your needs. For example, if one of you loses your job or retires, then it may make sense for both of you to take on a smaller mortgage.

Another reason why people might consider switching their mortgage is if they feel they have been offered a better deal elsewhere or have heard of another company offering better rates than their current lender. If this applies to you then speak to a mortgage adviser who will be able to advise on whether changing providers would make sense for your circumstances at that point in time.

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Moving home

Moving house is a big deal. It can be incredibly stressful and expensive, but it’s also exciting. If you’re in the process of moving home, there are lots of things to get organised – and one of those things is your mortgage.

If you’re moving house before your mortgage term is over, you may have the option of doing what is known as ‘porting’ a mortgage. This means you’ll take your existing mortgage to your new property, effectively remortgaging with the same company.

Bear in mind though that if you do decide to do this before your original mortgage expires, you’re likely to face penalty charging for early redemption.

There are some mortgages that do not charge an early repayment charge, these would be called a Flexible Mortgage.

If you’re thinking of moving, useful websites include Rightmove, On The Market and Zoopla.

First time buyer residential mortgages

First-time home buyers often worry about the cost of a mortgage, as well as whether or not they can afford one. The thing to remember is that your mortgage will probably be the largest loan you ever take on, but more often than not it’s also a necessity when buying a home.

The first step in understanding residential mortgages is to learn about your credit score. This number will determine how much money you can borrow and what interest rate you qualify for. The higher your score, the better your chances of finding a better deal on mortgages compared with someone with a low score or adverse credit.

How to get a residential mortgage?

The first step in getting a residential mortgage is speaking to a mortgage adviser.

A mortgage adviser can help you understand which type of mortgage is right for you, and guide you through the process of applying for it.

Happy mortgage broker giving free mortgage advice over the phone


What do I need to do to get a residential mortgage?

Getting residential mortgages is a lot like applying for any other type of loan. You’ll need to provide information about your financial situation and assets, as well as documentation that proves you have what it takes to repay the loan, e.g. payslips or company accounts.

Here’s what you need:

Information about your income and expenses: Your lender will want to know how much money you make each month, as well as how much money you spend. They’ll also want to know if there are other people who contribute to the financial picture—like roommates or spouses—and whether those people will be named on the mortgage. If they are, then they might also have to qualify for their own loans (depending on the type of mortgage you’re applying for).

Documents proving your employment: Whether you’re employed or self-employed, your lender will want proof that you’re able to continue earning income after taking out this loan. For example, if you work in retail or food service and plan on using your income to pay this mortgage, then your lender will want peace of mind that this job won’t disappear overnight (like an employment contract).

What is the step by step residential mortgages process?

Let’s start with a simple guide to understanding residential mortgages.

The mortgage process is split into four main steps: application, valuation, mortgage offer and completion.


This is when you apply for your mortgage. You’ll need to provide some basic information about yourself—your income and employment status, for example—and then sign the document that makes up your application. Your lender will then review this information and determine whether you are eligible for a mortgage, how much you can borrow, and what kind of terms (such as interest rate) you qualify for based on their current rates and policies.


Your lender will now perform a valuation on your home or property to ensure that it’s worth enough money to cover the amount they’re lending you plus all associated fees and costs (including fees associated with removing any existing mortgages).

There are two different types of valuations, a standard mortgge valuation or a Homebuyers report.

Once they’ve completed this evaluation of your home’s value, they’ll let you know whether or not it meets their requirements—and if so, they’ll go ahead with completing the rest of the process. If it doesn’t meet their requirements, or there was a down valuation they may either reject your application outright or suggest ways for you to increase the value of your property before proceeding further down the line.

Mortgage Offer

A mortgage offer is a document that outlines the terms of a mortgage loan. It includes things like how much money you can borrow, what your interest rate will be, and how long you’ll have to pay it back. The lender is responsible for putting together the mortgage offer and submitting it to you.


Mortgage completion is the final step in the mortgage process. You can think of it as the last leg of the journey, when you finally have the money transferred and get to call your new house your own.

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How much can I borrow and what mortgage can I afford?

The amount of money that someone can borrow from a lender is determined by their income, savings and credit history. The more money someone has saved up, the more likely it is that they will be able to get a larger mortgage. The lender will also look at how much debt someone already has and how much their monthly expenses are. In most cases, lenders income multiples differ therefore selecting the right lender is crucial, a mortgage adviser will be able to help you with this.

Can you get residential mortgages with bad credit?

The short answer is yes. The long answer is, it depends on what “bad” means.

There are many different factors that determine whether or not your score qualifies as bad credit. Lenders use credit reference agencies such as Experian or Equifax, they score you based on your financial past and give you a credit rating based on your history. “Bad” could constitute a high debt to income ratio, missed / late payments, CCJs or defaults.

You can check your credit profile using Check My File, who offer a free trial.

It’s important to remember that lenders are looking for more than just high scores—they want to see consistency over time and trust in your ability to pay back loans. If you’ve had a low score in the past but have been consistently paying back loans on time since then, then the lender will take this into account when deciding whether or not to approve your loan application. A mortgage adviser will be able to help you with appropriate lenders for your situation.


The most important thing you should consider when you are shopping for a residential mortgages is your unique financial situation. How much income do you currently have coming in? How much can you afford to pay each month in terms of both your monthly payment and any initial mortgage costs? What happens if interest rates rise? If you’re willing to put in more work, it can go a long way to helping you understand the types of mortgages that are available.

That said, using a mortgage adviser can make the process much easier. They’ve had the training and experience to help determine which product will work for you. Having an expert at your disposal should keep the whole process from dragging on for longer than necessary. And isn’t that worth having?

The information on this page is not tailored to any individual readers and should not be considered financial advice under any circumstances.

If you are seeking advice about a mortgage, you should consult a qualified professional.

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Calculate your monthly mortgage repayment.

Please note, this is a guide to how much you’d pay on a repayment mortgage, assuming your interest rate stays the same.

It’s important you always get a specific quote from the lender and double-check the price yourself before acting on the information. We cannot accept responsibility for any errors.


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