What is a residential mortgage?
A residential mortgage is a loan to buy a property to live in. The mortgage loan is secured on the property. If you cannot make payments, your lender can take ownership of the property and sell it to recover losses.
It is typical to determine residential mortgages based on the property’s value, creditworthiness, and income.
How does a residential mortgage work?
- Rates for this mortgage can be fixed or variable; it’s your choice. If you choose a fixed rate, your monthly payments will stay the same throughout the fixed term. A variable rate means the interest rate may change, so your monthly payments can go up or down.
- Residential mortgages are paid back in monthly instalments over 5-40 years. Most people take a ‘capital and interest’ mortgage, sometimes called a ‘repayment mortgage’. This means the monthly payment consists of the interest cost and an element to repay the debt so that the mortgage is fully repaid at the end of the term.
- For higher earners or those with a larger deposit, it is possible to take an interest-only mortgage which would mean lower monthly payments. You, instead, would have to have the means to repay the whole debt at the end of the mortgage term, and the lender would need to agree that your repayment strategy was credible.
Benefits of a residential mortgage
- A residential mortgage helps you to purchase your home without the need to pay a large sum of money upfront and if property prices increase, you could build up equity in the property over time.
- Low-interest rates: It typically comes with lower interest rates than other types of loans, such as credit cards or commercial loans, making them more affordable.
- Flexible repayment terms: Residential mortgage lenders are often willing to provide flexible repayment terms, such as overpayments or fixed or variable rate options.
- Builds Equity: If you take this mortgage on a repayment basis, meaning your monthly payments consist of capital and interest, some of your payments count toward reducing the principal balance of the loan.
- Stability: It can provide financial stability if you opt for a fixed interest rate, as your interest and, therefore, monthly payments will remain the same for that fixed rate period.
Click below to begin the process of applying for a residential mortgage
The types of finance we can offer
We can offer a wide range of funding options that include the following:
Business Loans
Let us help source the right business loans for you
Commercial Mortgages
Funding for commercial mortgages and buy-to-let purchases
Property Development
A range of development finance options catered to your specific needs
Bridging Finance
Funding for that urgent purchase or refinance when time is tight
Residential Mortgages
For individuals who wish to purchase their own home
Invoice Finance
Keep cash flow moving and get paid quicker for your products and services
Portfolio Landlord
For individuals or investors who own a portfolio of properties
Asset Finance
Sourcing the equipment you need without disrupting your cash flow
Buy-To-Let Mortgages
For individuals or investors who wish to purchase residential property to let
Multiply Finance Ltd is a member of the National Association of Commercial Finance Brokers.
Multiply Finance Ltd is a member of the Federation of Small Businesses.
Get In Touch
Our finance experts are on hand to take your call, email or respond to your message.
Censeo House,
6 St Peter's Street,
St. Albans,
AL1 3LF
Multiply Finance Limited trading as Multiply Finance is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 929261. The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Your property may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice, the precise amount will depend upon your circumstances.
Multiply Finance Limited Registered Address: Egale 1 80 St Albans Road, Watford, Herts, England, WD17 1DL Registered in England and Wales No: 12561172
Not all services we offer are covered by the FCA. Click here to read our Privacy Policy statement.
Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.
How to make a complaint - It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.