Residential Mortgage
Residential Mortgages Made Simple. Looking to step onto the property ladder or upgrade your home? At Connect Mortgages, we offer bespoke residential mortgage solutions designed for first-time buyers, home movers, and those seeking better rates through remortgaging. Your Mortgage, Your Way Every borrower’s journey is different. That’s why we don’t believe in one-size-fits-all advice. Whether you're salaried, self-employed, or dealing with complex income structures, our expert advisers tailor solutions that match your life – not just your credit score.
Buying a home is a major milestone, but understanding how residential mortgages work doesn’t have to be overwhelming. With various mortgage types, interest rate options, and lender criteria, it’s crucial to have the right information from the start.
Whether you’re a first-time buyer or moving up the property ladder, this guide breaks down the essentials from mortgage processes and eligibility to repayment terms and protection insurance.
At Connect Mortgages, we help you make confident, informed decisions. Let’s explore your options and find the residential mortgage that fits your goals.
What is a Residential Mortgage?
A residential mortgage is a loan used to purchase a property you intend to live in. The mortgage is secured against your home, meaning if you’re unable to keep up with repayments, the lender has the legal right to repossess and sell the property to recover the outstanding debt.
At Connect Mortgages, we help you secure the right loan based on your income, credit profile, and property value. Whether you’re a first-time buyer or planning to move home, we provide tailored advice to suit your goals.
What is Second Residential Mortgage?
A second residential mortgage, often called a second-charge mortgage, is an additional loan secured against your property, in addition to your existing mortgage. Homeowners typically use second-charge mortgages to release equity for home improvements, consolidate debt, or support family members financially.
Unlike a further advance from your current mortgage provider, a second charge usually involves a different lender, meaning they hold the secondary legal right (or “charge”) on your home. Since this loan is subordinate to the first mortgage, interest rates and fees may be higher to reflect the added risk.
If you’re exploring capital raising options, improving your current mortgage rate, or need a strategic way to access property equity, Connect Mortgages is here to help.
The Benefits of Residential Mortgages
How Does a Residential Mortgage Work?
A residential mortgage is a loan used to purchase a house, flat, bungalow, or other residential property. At Connect Mortgages, we work with a wide range of banks and lenders to help you secure the funding you need for your home purchase.
You’ll repay the loan in monthly instalments over an agreed term, typically 5 to 40 years. A longer term means lower monthly payments, but you’ll pay more in total interest. These are secured loans, meaning the property serves as collateral, providing the lender with additional protection.
Explore related options like our first-time buyer mortgages or remortgage services to find the right fit for your situation.
To secure a residential mortgage, borrowers are typically required to make a deposit, which serves as a financial commitment to the property. This deposit can start from as little as 5% of the purchase price, depending on the lender and the type of mortgage.
How Does Interest on Residential Mortgage Work?
When you take out a residential mortgage, you agree to repay both the principal and interest, the additional cost charged by the lender over time for providing the loan. This cost is typically expressed as the Annual Percentage Rate (APR), which reflects not only the interest rate but also additional fees associated with the mortgage.
Mortgage lenders determine your interest rate based on several factors, including your credit score, the size of the loan, and the length of your repayment term. In general, the higher the perceived risk to the lender, the higher the interest rate applied.
That said, you don’t need perfect credit to access competitive mortgage deals. Even if you’ve faced credit challenges, such as missed payments or County Court Judgements (CCJs), our team at Connect Mortgages can help you explore suitable adverse-credit mortgage options.
To understand what rate you might qualify for, try our quick mortgage calculator or speak directly with an experienced mortgage adviser for personalised guidance.
Mortgage Advice..
Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation.
Buy to Let vs Residential Mortgages
The following are some differences between buy to let vs residential mortgages
Buy to Let
- Purpose: Buy-to-let mortgages are designed for landlords who want to purchase properties specifically to rent out to another person or family.
- Term: Buy-to-let mortgages can often have longer repayment terms, which can go into retirement.
- Interest Rates: Higher interest rates.
- Deposit: Buy-to-let mortgage lenders typically require borrowers to make a larger down payment (25% – 30%) than residential mortgage lenders to reduce risk.
- Fees and Costs: Additionally, buy-to-let mortgages may have higher fees and other costs associated with the loan.
Residential Mortgages
Purpose: It is designed for purchasing a house, flat, or other residential property for the purchaser to live in.
Term: It typically needs to be repaid by retirement. (Unless you take a specialist mortgage called RIO or Equity Release)
Interest Rates: Lower interest rates than commercial or Buy to let mortgages.
Deposit: Residential mortgage lenders also require borrowers to make a down payment to reduce risk but can be as low as 5%.
Fees and Costs: It may also involve different fees and other loan-related charges.
Residential Mortgage Rates
Your residential mortgage rate is influenced by key factors such as your credit profile, loan amount, and the lender you choose. At Connect Mortgages, we help you understand your options so you can make confident, informed decisions.
When choosing a lender, you’ll typically be offered two main types of mortgage rates: fixed rates and variable rates.
Fixed Rate Mortgages
A fixed-rate mortgage ensures your monthly repayments remain the same for a set term, commonly 2, 5, or 10 years. This stability means you’re protected from fluctuations in market interest rates during the fixed period. For example, if you lock in a 5-year fixed rate, your payments won’t change for five years, no matter how the base rate moves.
Explore more on our remortgage page if you’re considering switching to a new fixed rate.
Variable Rate Mortgages
With a variable rate mortgage, your monthly payments can rise or fall depending on the Bank of England base rate or your lender’s standard variable rate. There are two main types:
Tracker Rates: These track the Bank of England’s rate, typically with a set margin.
Discount Rates: These offer a discount from the lender’s standard variable rate (SVR), often for an introductory period.
While variable rates may start lower than fixed rates, it’s important to plan for potential increases in monthly payments if rates rise.
You can also try our mortgage calculator to estimate how different rate types affect your repayments.
Which Rate Type Is Right for You?
Whether you’re a first-time buyer or moving home, it’s essential to select a rate that fits both your current financial situation and future plans. Our experienced mortgage advisers are here to guide you through the pros and cons of each option and help ensure your repayments remain affordable in the long term.
Residential Mortgage Calculator
Use our residential mortgage calculator to estimate your monthly payments and total loan cost in seconds. Adjust interest rates, repayment terms, and loan amounts to compare real-time scenarios tailored to your budget.
This tool helps you make informed decisions before applying for a first-time buyer or home mover mortgage. Want to know what rates you might qualify for? Our expert mortgage advisers are ready to guide you with personalised support.
Start now to gain clarity, confidence, and a better deal on your next home.
Residential Mortgage Advisers or Mortgage Brokers
If you’ve come across terms like mortgage adviser and mortgage broker, you might wonder what sets them apart. In general, a mortgage adviser is a qualified professional who specialises in residential and buy-to-let mortgages, offering tailored advice to homebuyers and movers. Meanwhile, a mortgage broker often works within specialist markets, such as commercial mortgages or complex lending scenarios.
We combine the best of both. Our residential mortgage advisers are fully qualified, highly experienced, and dedicated to helping you secure the right mortgage deal, whether you’re a first-time buyer, moving home, or simply seeking a better rate through remortgaging.
We work with a panel of over 200 lenders and providers, giving you access to a wide range of competitive interest rates and flexible repayment options. Our advisers take the time to understand your financial goals, guide you through the documentation process, and support you every step of the way from application to approval.
- Ready to explore your options? Use our Mortgage Calculator
- Have questions? Browse our First-Time Buyer guide
- Need expert advice now? Contact our team today.
Let Connect Mortgages help you unlock the best residential mortgage solution for your future.
FAQs: Residential Mortgage
Most frequent questions and answers about residential mortgage
Consent to Let is an arrangement where the lender allows the borrower to rent their property. This period lasts until they can switch to a residential BTL mortgage. Moreover, this option gives the borrower time and flexibility when finding alternative housing solutions. It is crucial to seek consent; otherwise, you will breach the lender’s rules. Additionally, you can speak with an adviser about remortgaging to a buy-to-let mortgage.
You cannot change your buy-to-let mortgage to a residential mortgage without a full affordability and underwriting assessment. This is because a buy-to-let mortgage relies on rental income, not your personal payments. If you move into a property with a buy-to-let mortgage, you will breach the lender’s conditions. Such a breach can seriously affect your ability to get future mortgages. However, a good mortgage adviser can help you make the changes correctly.
Yes, it is possible to have both buy to let and residential mortgage simultaneously. However, it is important to assess your financial situation before taking on any additional debt.
It is not allowed to rent out a property with a residential mortgage without the lender’s permission, as it is considered mortgage fraud. If discovered, the lender may demand repayment or repossession of the property.
What next?
We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.
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Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.
About the Author
Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.