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Residential Mortgage

Specialist Mortgage Broker For Residential Mortgages.

Are you struggling to find a residential mortgage with fair interest rates? Have high street lenders refused to consider your application due to your unique circumstances or financial mistakes you’ve made in the past? Talk to a residential mortgage advisor at When The Bank Says No today!

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Annual Gross Income
Deposit
You could borrow
For a property worth:
Annual Gross Income
Deposit
You could borrow
To buy a property worth:
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Finding The Best Residential Mortgages For Your Circumstances

A residential mortgage in the UK shouldn’t be hard to come by. Owning your own home is a dream of many UK residents, but sometimes finding a residential mortgage can feel impossible, especially if you have no credit history (or even bad credit). But that doesn’t have to be the end of your mortgage journey, especially if you work with a specialist mortgage broker like a member of our team at When The Bank Says No.

As a mortgage broker we are in regular contact with mortgage lenders that have different lending criteria compared to high street lenders, so a mortgage deal may still be possible. With our help, you can improve your circumstances to make yourself a more attractive borrower to lenders, and help frame any past bad credit history in a way that shows your responsibility today.

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What Is A Residential Mortgage?

A residential mortgage is a mortgage taken out in order to purchase a home for residential use. It’s different from buy to let mortgages, because a buy to let property is the purchasing of a home that is then rented out to a tenant as a way of making additional income.

Residential mortgages are designed for individuals, couples, groups, or families to purchase a property to live in.

The borrower usually takes out a residential mortgage over a specific period of time (known as the mortgage term) which can be altered, but is usually around 25 years on average for UK residential mortgages.

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Are Residential Mortgages Interest Only Or Fixed Rate?

Residential mortgages are available as both fixed rate mortgages and interest only mortgages.

A fixed rate mortgage essentially means you lock into fixed interest rates on your mortgage deal for a specific period of time – usually 2, 5, or 10 years. Here the interest rate will remain the same no matter what else happens with the mortgage market during this time. These differ from tracker mortgages or a variable rate mortgage which both have interest rate fluctuations throughout the course of the mortgage. Residential mortgages are available with different interest rate terms.

An interest only mortgage is a mortgage product you might be moved on to if you’re struggling to make your monthly repayments, and so they’re used most often as a safety net when you can’t cover the full costs of your repayment mortgage (where the actual amount you borrowed and the interest rate charges are covered each month) rather than as a mortgage product people apply for in the first instance. If you’re on a residential mortgage and need support, you might be switched to an interest only mortgage if your circumstances change and you need a little breathing space to get your finances in order.

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Let's get the ball rolling.

We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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Check your credit file.

In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.

How Large A Deposit Will I Need For A Residential Mortgage?

As with all mortgages, the larger your deposit, the more favourable your mortgage conditions will become as mortgage lenders will start to see you as a decreased risk.

The more deposit you can offer, the lower your loan to value (LTV) ratio is. LTV rates are expressed as a % typically, showing the % of the property value that is covered by the loan vs your own deposit.

For example:

Property Value:

£200,000

Deposit:

£50,000

£20,000

Mortgage Amount:

£150,000

£180,000

Loan To Value (LTV) Ratio:

75%

90%

With a LTV ratio of 75% you’ll be able to get access to much more mortgages with more competitive rates and favourable terms and conditions for you as the borrower. With a LTV ratio of 90% you’ll still be able to access some great deals (given that most lenders are happy to lend with a 90% LTV, and others are happy with 95% LTV if other lending criteria is satisfied to a high degree), but these deals will carry higher interest rates than those offered to borrowers with a LTV of 75%.

Turning Your Nightmares Into Dreams

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When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

How Much Can I Borrow For Residential Mortgages?

How much you’ll be entitled to borrow will depend entirely on your circumstances. The lender will need to determine your affordability to ensure you’re actually able to make the monthly payments reliably every month.

They’ll need to consider multiple factors before they can determine exactly how much you’ll be entitled to, such as:

  • Your income
  • The nature of your work (self employed mortgages are much harder to come by – but we can help there, too)
  • Property value
  • Deposit amount
  • Joint mortgage vs solo mortgage
  • Guarantor or not?
  • Credit history

 

All of these factors, plus others which each lender will consider individually and assign different levels of importance to, will decide how much you can realistically borrow.

If you are looking for a rough guide, then generally you’ll be entitled to borrow between 4 and 5 times your annual income (or joint household income if you’re applying with a partner or friend who also works). So, if you and your partner had a combined household income of £50,000, you could borrow somewhere between £200,000 and £250,000, depending on your deposit amount, the nature of your work, and other mitigating factors.

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Residential mortgages FAQs

What will I need to apply for a residential mortgage?

There are 6 main things you’ll need to have to hand when applying for a residential mortgage:

  1. An up-to-date credit report (check this for any errors – and be prepared to explain any blips in your credit history and how things are different for you now if you’ve suffered from poor decision making and bad credit practices in the past)
  2. ID
  3. Proof of address
  4. Deposit evidence – usually from bank statements showing the amount you have ready to put down as a deposit on your future property
  5. Proof of income – payslips, contract of employment, etc – this will help lenders assess the amount of money you reliably make each month and the nature of your work
  6. Other financial commitments – this might be other debts or regular payments you make, just so lenders can get an idea about the expenses you have so they can assess your affordability more realistically

 

You may be asked for other pieces of evidence to support your application, but for the most part, these will be the main things you will need to get in order before making an application with any mortgage lender.

Residential mortgage rates fluctuate constantly in the UK, sometimes on a daily, weekly, or monthly basis, depending on just how stable the market is at the time of any application.

We won’t provide a figure here, because by the time some of you read this section, it will be out of date and no longer relevant and the best residential mortgage rates today might be even better in the future.

You can check average mortgage rates online with ease, however, but remember if you’re applying for a residential mortgage as somebody with bad credit, these rates are likely to be higher than average anyway, as lenders need to protect themselves even when they’re willing to offer mortgages to individuals with a poor credit history.

You might be considering whether a solo or joint mortgage is the better option for you. Generally, applying for a joint residential mortgage is always the better idea as applying for a mortgage for a household with two (or more) incomes will only strengthen your application and show lenders that you’re more than capable of affording the monthly payments.

This is especially true if you’re an individual with bad credit, but the person you’re applying with has a particularly good credit history. Most lenders will consider both of your credit scores, meaning on average, the two of you combined will have a stronger credit history and make you less of a risk in the eyes of the lender.

If you both have bad credit, however, applying for a joint mortgage won’t usually affect the likelihood of a lender being willing to lend you money for your mortgage, as you’ll both be considered riskier borrowers anyway.

If you have bad credit and you’re hoping to work with our specialist advisors at When The Bank Says No, then you’re already taking a positive first step, because we can advise you further when we know more about the reasons behind your bad credit.

But some of the things you can do to improve your chances of success include:

  • register to vote if you haven’t already – being on the electoral register is reassuring to mortgage lenders
  • review your credit report – and highlight any discrepancies/errors and try to get them removed to increase your credit score
  • build your credit – by purchasing things on a credit card responsibly and then paying it off each month you show lenders you can borrow responsibly and make repayments on time
  • apply for a credit card – even if it’s only a credit card with a low limit, such as £500, this shows lenders that other lenders see you as reliable (a well managed credit amount of around £4,000 is preferable so apply to increase your credit limit if you can manage it responsibly to further improve your chances of success with a mortgage application)
  • reduce card balances – if you already have credit cards that are using more than 50% of your total credit limit, then you’ll want to focus on bringing that down as quickly as possible whilst ensuring you don’t fall into debt elsewhere

These are great places to start, but we can advise further when we work together to help you improve your chances of mortgage success. We’ll also put you in contact with specialist mortgage lenders who are more willing to listen to the circumstances surrounding any bad credit history to understand how your life is different now and how that makes you a much more reliable lender today.

If you have the ability to buy a property outright then you don’t need a mortgage. In fact, if you’re desperate to own a home right now, and you can afford to be a cash buyer, then you can do so without having to account for the monthly interest rates added on to mortgage payments, meaning you’ll pay only what the property is worth.

There’s little point taking out a mortgage just to pay for it all early later down the line – as you’ll also be charged early repayment charges for such a decision.

With that said, very few people in the UK are in the fortunate position to pay cash for a property, so you’ll need to be realistic about whether this is an option for you.

Trusted specialist residential mortgage advisors

Whatever your circumstances, a member of our team at When The Bank Says No wants to hear from you if you’re hoping to own your own home one day, but are concerned your credit history might get in the way of a residential mortgage.

We know having a poor credit history can feel like a barrier to home ownership, but it doesn’t have to be. It’s our belief that your circumstances today are far more important than your credit standing in the past. And we can help put you in touch with residential mortgage lenders with the exact same attitude as us, who are more than happy to consider applications from a range of applicants no matter their history or circumstances.

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