A residential mortgage is a loan available from lenders such as banks or building societies which allows you to purchase a home. Residential mortgages are the most common way of buying a home in the UK as most people do not have enough funds to buy a property outright. There are many types of residential mortgages available which differ from each other on factors including interest rates, repayment methods and loan sizes.
You are well advised to get your mortgage sorted out before you even start looking for a house – so you’ll know what you can afford. This is called getting a mortgage approved ‘in principal’ and indicates that the mortgage lender thinks you are a credit worthy person that they are prepared to lend to. Your mortgage adviser will help you to find the right kind of mortgage that suits both your own circumstances and the type of property you are looking to buy. Once you find your home sweet home your lender will consider its details and then approve the loan, allowing you to proceed with the purchase process.
To find the right residential mortgage for you find a mortgage adviser here.
Questions you might like to ask a mortgage adviser…
- How often should I be reviewing my mortgage arrangements?
- Are there any kinds of property that the lender won’t approve – such as flats over commercial premises, ex council etc?
- With the deposit I have saved, what sort of value property should I be considering?