Residential Mortgages

Residential Mortgages

Our panel of carefully selected Specialist Mortgage Brokers are always here to support and assist you when needed offering a whole of market service. Who at times have exclusive offers for our clients. 

What are Residential Mortgages?

Residential Mortgages are loans provided by financial institutions, like banks or building societies, to individuals who wish to purchase a home. These loans are secured against the property being purchased, meaning that if the borrower fails to make the agreed payments, the lender has the right to repossess the property and sell it to recover the outstanding loan amount.

Key Features of Residential Mortgages:

• Loan Amount and Deposit:  The mortgage typically covers a percentage of the property's value, with the borrower required to pay a deposit upfront. For instance, a typical mortgage might cover 75% to 95% of the property's value, meaning the borrower needs to provide a 5% to 25% deposit.

Interest Rates: 

• Fixed-Rate Mortgages:  The interest rate remains the same for a specified period, usually 2, 5, or 10 years. This provides certainty over monthly payments during that period.
• Variable-Rate Mortgages:  The interest rate can change, often in line with the Bank of England's base rate or the lender's standard variable rate (SVR). This can result in fluctuating monthly payments.
• Tracker Mortgages:  These follow the Bank of England base rate plus a fixed percentage, meaning payments can go up or down with changes in the base rate.

Repayment Methods:

• Repayment Mortgages:  Each monthly payment goes towards paying off both the interest and the principal loan amount. By the end of the mortgage term, the entire loan is repaid.
• Interest-Only Mortgages:  The borrower pays only the interest each month, with the full loan amount due at the end of the mortgage term. This method requires a plan for repaying the principal, such as investments or savings.

Mortgage Term:

• The length of a mortgage can vary, but common terms are 25 to 30 years. Shorter terms result in higher monthly payments but less interest paid overall, while longer terms have lower monthly payments but more interest paid over time.

Affordability and Eligibility:

• Lenders assess a borrower's ability to repay the mortgage by considering their income, expenses, credit history, and overall financial situation. They also perform stress tests to see if the borrower could still afford the payments if interest rates were to rise.

Types of Residential Mortgages:

• First-Time Buyer Mortgages:  Tailored for those purchasing their first home, often with incentives like lower deposit requirements.
• Buy to Let Mortgages:  For those buying a property to rent out, these typically require a larger deposit and have different affordability criteria.
• Help to Buy Mortgages:  Linked to government schemes designed to help people buy homes with smaller deposits.

Government Schemes:

• Various schemes exist to help buyers, particularly first-time buyers, such as Help to Buy, Shared Ownership, and Right to Buy, which offer different forms of financial assistance.

Costs and Fees:

• Arrangement Fees:  Charged by the lender for setting up the mortgage.
• Valuation Fees:  For assessing the value of the property.
• Legal Fees:  Costs associated with the legal process of buying a home, including solicitors' fees.
• Early Repayment Charges:  Fees that may apply if the mortgage is paid off early.

Our Specialist Mortgage Brokers are here to support you in finding the right mortgage for you

The mortgages they can assist with are listed below:

• Home Mover Mortgages
• Older Age Borrowers
• Product Transfer
• Remortgage - Additional Borrowing
• Remortgage - Debt Consolidation
• Remortgage - Home Improvements
• Repayment and Interest Only Mortgages
• And more...

Find out how our panel of Specialist Mortgage Brokers can assist you.