A residential mortgage for a property you live in is one of the most common forms of credit in the UK
Residential mortgage is one of the most common mortgages, whether you’re a first-time buyer, or are looking to move house, a residential mortgage or home mover mortgage as its sometimes called will most likely be the type of loan that you’re looking for.
When a house is bought it is common for a cash deposit to be put down. This is typically (although not always) at least 5% of the property price. The loan is then used to pay the rest of the purchase price and potentially any extra that has been borrowed to cover, for example renovation or improvement costs.
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Residential Mortgage FAQ
Residential mortgages are one of most common forms of credit. The average home in the UK now costs around £216,000, so it’s highly likely that you will need to take out a mortgage to afford to purchase your own property.
Whether you’re a first-time buyer or looking to move house, a residential mortgage is the type of mortgage you will need to take out. A residential mortgage is a mortgage for a house that you live in. It is a long term loan which helps to fund the purchase of a property. The mortgage is to be paid back to the lender over approximately 25 years or more with additional interest.
With this type of mortgage, you must be living in the home yourself. You cannot rent the house out to tenants or use the property for any commercial purpose.
Residential mortgages typically require a cash deposit of between 10 and 30% of the total property value. For example, the deposit you would require for a £200,000 home would be somewhere within the region of £20,000 and £60,000.
Whether you’re a first-time buyer or looking to move house, a residential mortgage is the type of mortgage you will need to take out. A residential mortgage is a mortgage for a house that you live in. It is a long term loan which helps to fund the purchase of a property. The mortgage is to be paid back to the lender over approximately 25 years or more with additional interest.
With this type of mortgage, you must be living in the home yourself. You cannot rent the house out to tenants or use the property for any commercial purpose.
Residential mortgages typically require a cash deposit of between 10 and 30% of the total property value. For example, the deposit you would require for a £200,000 home would be somewhere within the region of £20,000 and £60,000.
Every mortgage has an LTV ratio. This is the amount you borrow set against the total value of the property.
If you are looking at buying a house with a value of £200,000 and you have a deposit of £40,000, then you will need to borrow £160,000 to afford the property. This would give you an 80% LTV mortgage with your deposit making up the remaining 20%.
The lower the ratio, the lower the risk to the lender and the better the interest rate you will be eligible for.
Mortgages with the lowest available interest rates typically have an LTV of 60%. The highest rate mortgages typically have an LTV of 85% or more. Higher loan to value mortgages are popular options for people buying their first home as it allows them to save less for a deposit and get onto the property ladder much quicker than they would otherwise.
As well as your deposit amount, lenders will also consider your individual financial circumstances when applying for a mortgage. Your credit rating plays a huge role in your mortgage application. If you have a poor credit rating then it’s likely you will only be eligible for mortgages with high-interest rates. You can find out more about our bad credit mortgage options here.
For free initial advice from our qualified mortgage brokers about a residential mortgage, call 0800 197 0504 or click below to request a callback at a time to suit you.
Case Study
Securing a residential mortgage for one person who had previously been in an IVA
We secured a residential mortgage for one customer who had recently come out of an Individual Voluntary Arrangement (IVA). At Clever Mortgages, we helped him by:
- Getting a mortgage, even with a poor credit history
- Securing a fixed rate of 2.99%
- Finding a 95% mortgage
| Balance | Payment | Rate | Term | |
|---|---|---|---|---|
| New Mortgage | 113,050 | 584.91 | 2.99 | 22 Years |
Completed 09/07/2019
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Specialists in bad credit
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The number and quality of lenders we work with means we have access to a diverse spectrum of best-rate deals. The lenders we use means we have all areas covered – even for those in particularly niche circumstances.
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We have helped 1000’s of people with bad credit. All our advisors are trained on securing mortgages for clients with bad credit. In short, we know this market.
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We have access to every adverse friendly lender, we can often secure you exclusive rates you can’t find on the high street.
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Why use a mortgage broker?
Most of our customers have had some form of credit difficulties, from low credit score, missed payments or declined a mortgage elsewhere.
- Valuable knowledge, through years of experience helping customers
- Bad credit / poor credit experts
- Find the right mortgage first time
- Some mortgages are only available through a broker
- Help with the application process
- Advice on all options available, such as help to buy, guarantor or shared ownership
- Read more on what a mortgage broker does for you
Why use a mortgage broker for a residential mortgage?
Mortgage brokers can help you find the best deals on the market – not just from one lender. With a broker you’ll get:
- Valuable knowledge, through years of experience helping customers to find mortgages
- An improved chance at finding a mortgage, some mortgages are only available through a broker
- Help with the application process, as usually just one application can be used across various lenders
- Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage
About Clever Mortgages
We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:
- With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
- Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
- With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
- Our team know the lenders that are most likely to say ‘yes’, and give you the best rates
What should I do next?
- You enquire online with us today or request a call back
Our simple form takes a couple of minutes to fill in, this gets the ball rolling
- One of our experts will give you a call to find out more about your situation
We have experts in remortgaging, who focus solely on helping customers save money
- We do all the hard work for you
We search the market for the trusted lender that’s right for you
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We can guide you every step of the way, and we’ll always keep you up-to-date with progress
Ashleigh Bottomley
Ashleigh is one of our Front Line team ready to answer your mortgage questions.
Call us on: 0800 197 0504
Below are some of the lenders we work with
