A residential mortgage is a loan used to buy or remortgage a property that you plan to live in. Before offering a mortgage, lenders assess your income, employment status, credit history, existing commitments, and deposit. This helps them decide whether the loan is affordable and sustainable for you.
The most common option is a repayment mortgage. Each monthly payment covers both interest and part of the loan, reducing the balance over time. Interest only mortgages are available in some circumstances, but they have specific eligibility criteria and require a clear repayment strategy.
Mortgage rates can be fixed, variable, or tracker. A fixed rate provides payment certainty for a set period. Variable and tracker rates may change during the term. Mortgage terms usually range from 5 to 35 years, depending on age, affordability, and lender criteria.
First time buyers, home movers, and those looking to remortgage can all apply, subject to lender requirements. Many lenders accept deposits from 5 percent, although a larger deposit may provide access to a wider range of products or lower interest rates.
You can apply directly with a lender or speak to a mortgage broker. A broker can explain available options and compare products across part of the market or the whole market, depending on their service scope. It is important to understand how your adviser is regulated, whether fees apply, and which lenders they can access.
Mortgage approval is not guaranteed. Early guidance and a full review of your financial position can reduce the risk of delays or declined applications. Always ensure the mortgage recommended is suitable for your needs and that you understand the costs, risks, and long-term commitments involved.