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Residential Property Mortgages
If you’re seeking a residential property mortgage, our award-winning team at Mortgage Lane is ready to assist. Specialising in helping both homeowners and first-time buyers, we provide expert advice tailored to your home mortgage needs. Our connections with a range of lenders, known for their generosity and less cautious approach, position us to find the best mortgage solution for you.
PROCESS BREAKDOWN
1
Information gathering and advice
The first process in your mortgage application will be gathering or updating information in relation to the property, tenants, or yourself. Once this has been established your expert residential mortgage broker will make a product recommendation.
2
Credit approval
Once you are satisfied with the product recommended and have confirmed to proceed, this will usually be submitted the same day to give you a decision, until this point there is still nothing to pay! As long as the Agreement in Principle (AIP) was approved, we can move to application stage where fees become payable.
3
Application, valuation & underwrite
Once the application is submitted, your valuation will be booked in and most of the time (depending on the lender). This will usually completed once your initial underwriting has been completed. Once the valuation is returned, if acceptable, the lender would then look to make a formal offer. You can then move to legal stage.
4
Offer and completion
Once you have had your residential mortgage offer, you will require adequate legal advice and then once you’re happy, your solicitor can draw this down once the legal requirements are satisfied. Your broker at Mortgage Lane will always be checking in on the application post offer, so we are chasing for you too!
Residential affordability and beyond
Residential affordability can be a tough nut to crack sometimes, being so different from lender to lender. You have Loan to income Ratio (LTI) ranging from 4-6x the useable income. That useable income can also vary from lender to lender, some lenders will not accept some incomes, or only a smaller % of them. Our role at Mortgage Lane is to connect you with lender that will lend you the funds required, whilst still being the most cost effective.
Types of Residential Buy to Let mortgages
We assist both business owners and investors with Commercial Mortgage advice. Below we explain all the types of variations you might come across as well as information on different ownership types and how this can impact your mortgage options.
New build mortgages
Mortgage Lane is adept at assisting borrowers with newbuild mortgages, catering to those buying off-plan or purchasing properties classified as new builds. Our expertise in this area ensures you get the most suitable mortgage for your newbuild property.
Understanding Newbuild Mortgages with Mortgage Lane
Definition of a Newbuild: Lenders have varying definitions of what constitutes a newbuild. Some consider a property as newbuild if it hasn’t been sold yet, while others may classify properties as new builds for up to 10 years post-construction.
Newbuild Products and Underwriting: Properties recognised as newbuilds are subject to specific new build mortgage products and underwriting processes tailored to these types of properties.
Newbuild Warranties: Applicants must be aware of the need for new build warranties, which are critical for mortgage approval. While the acceptability of warranties varies among lenders, typically recognised warranties include:
NHBC
Premier Guarantee
LABC
Building Life Plans (BLP) underwritten by Allianz Global
Build-Zone
Checkmate / Castle 10
Build Assure
Global Home Warranties
The Q Policy for Residential and Bespoke Properties
Protek
Advantage
International Construction Warranties (ICW)
Ark Residential New Build Latent Defects Insurance
Aedis
One Guarantee
CRL new build 10-year structural defects insurance policy
Off-Plan Purchases: Mortgage Lane can guide you through the process of purchasing off-plan. It’s important to note that mortgage offers for off-plan properties may only be valid for 3-9 months, depending on the lender.
Builder Cash Incentives: For new build residential property mortgages, some lenders may allow a 5% incentive if they are for payment of legal costs and stamp duty by the builder. Inclusions like white goods, floor coverings, and upgrades to kitchens/bathrooms are generally acceptable. However, the value of sales incentives should not exceed 5% of the purchase price.
Loan to Value (LTV): Newbuild houses and apartments are available up to 95% LTV, offering significant borrowing potential for new homeowners.
At Mortgage Lane, we specialise in navigating the specifics of newbuild mortgages, ensuring you have access to the right products and understand all the nuances, from warranties to builder incentives. Whether you’re a first-time buyer or looking to move into a newly built home, our team is here to provide expert guidance every step of the way.
Right to Buy Mortgages
Welcome to Mortgage Lane’s dedicated page on Right to Buy Residential Property Mortgages, a scheme that offers a unique opportunity for housing association tenants to become homeowners. Our expertise in this area ensures that you have access to the best mortgage solutions tailored to your needs.
Understanding Right to Buy Residential Property Mortgages
Right to Buy is a government-backed initiative, also known as the voluntary right to buy or right to acquire, aimed at helping housing association tenants in the UK purchase their rented homes at a discounted price.
Eligibility for Right to Buy
To be eligible for Right to Buy, you need to meet certain criteria:
Tenancy Type: This scheme is specifically for housing association tenants.
Duration of Tenancy: Eligibility often hinges on the length of your tenancy with the housing association or public sector landlord.
Property Specifications: The property should be your main residence and self-contained. Certain types of properties may be excluded.
Tenancy Status: Your tenancy should be secure and free from legal disputes.
Financial Aspects of Right to Buy
Lenders who support the Right to Buy scheme typically offer loans up to 100% of the discounted purchase price of the property. However, it’s crucial to note that the total loan to value (LTV) should not exceed 90%. This means eligible tenants can potentially buy their homes without a standard deposit, as the discount received might cover the deposit amount.
Mortgage Lane’s Digital Mortgage Solutions for Right to Buy
At Mortgage Lane, we integrate Right to Buy options into our innovative Digital Mortgage services. Our digital approach is designed for efficiency and speed, with some mortgage offers issued in mere seconds after application submission. This service is particularly advantageous for those looking to utilise the Right to Buy scheme, ensuring a smooth and fast transition from tenant to homeowner.
For more information on how our Digital Mortgages can assist in your Right to Buy application, please explore our detailed section below. Our commitment at Mortgage Lane is to provide comprehensive support and guidance, making the journey to homeownership through Right to Buy as seamless and straightforward as possible.
Digital mortgages
Mortgage Lane is at the forefront of embracing the latest advancements in residential property mortgages, including the innovative concept of digital mortgages. Our new page will provide an in-depth understanding of what digital mortgages are and how they can benefit applicants.
What are Digital Mortgages?
Digital mortgages represent a significant shift in the mortgage application process, moving towards a more streamlined, technology-driven approach. These mortgages leverage digital technology to simplify and speed up the mortgage application and approval process. Key features include:
Automated Income and Expenditure Analysis: Lenders may use data from credit bureaus like TransUnion to automatically assess salary credits and expenditures, reducing the need for manual input.
Electronic Identification and Verification: The process of verifying the identity and bank statements of applicants is now done electronically, enhancing the efficiency and security of the application.
Rapid Decision Making: One of the standout features of digital mortgages is the speed at which they can be offered. Decisions are often made within minutes, providing a seamless and efficient customer experience.
Use of Automated Valuation Model (AVM): For property valuation, digital mortgages often use AVM methodology. This is particularly significant for residential mortgages up to 95% LTV, as it allows for a swift and accurate property valuation without the need for physical inspection in many cases.
How Mortgage Lane Can Assist with Digital Mortgages
At Mortgage Lane, we specialise in assisting applicants who are interested in pursuing digital mortgages. Our expertise in residential property mortgages means we are well-equipped to guide you through the digital mortgage process, from the initial application to the final approval. We understand the nuances of digital lending and can help you navigate the new landscape of mortgage applications, ensuring you benefit from the speed, efficiency, and convenience that digital mortgages offer.
Whether you are a first-time buyer or looking to refinance, our team is dedicated to providing you with the best possible support in securing a digital mortgage. With Mortgage Lane, you can be confident in accessing the latest mortgage technology for a smooth and streamlined home-buying experience.
Shared ownership mortgages
Our goal is to help borrowers navigate the complexities of shared ownership and secure suitable mortgage options.
Understanding Shared Ownership Mortgages
Shared ownership mortgages are designed for individuals looking to purchase a share of a property, typically between 25% and 75%, and pay rent on the remaining share.
Key Features of Shared Ownership Mortgages with Mortgage Lane:
Minimum Loan Amount: We offer shared ownership mortgages starting from a minimum loan of £50,000.
Staircasing Requirements: The minimum share a borrower can purchase (staircase) in their property is 10%, with the maximum being up to 75% LTV for staircasing. Staircasing allows you to increase your share in the property over time, up to 100% ownership.
Mortgagee Protection Clause (MPC): A full MPC must be in place for these mortgages, ensuring both the borrower and lender are protected.
Panel Solicitors: Applicants may be required to use one of the lender’s approved panel solicitors to facilitate the transaction.
Borrowing for Applicant’s Share: We assist borrowers in securing mortgage options for up to 100% of their share in the property.
Further Advances: Further advances in shared ownership mortgages are typically available only for the purpose of staircasing.
Lender Variability: While some lenders may only offer mortgages for shared ownership scenarios that lead to 100% ownership, at Mortgage Lane, we work with lenders that provide tailored products suitable for different levels of shared ownership staircasing.
Affordability Criteria: Similar to conventional mortgages, the loan-to-income (LTI) ratios range from 4-6x the applicant’s income. We also have access to tier 3 lenders who offer products for those with recent or complex income, making it possible for applicants without an extensive income track record to apply.
At Mortgage Lane, our expertise in residential property mortgages, particularly in shared ownership, allows us to guide applicants through each step of the process. Whether you’re looking to start on the property ladder or aim to staircase to full ownership, our team is equipped to help you find the most suitable mortgage option for your needs.
Help to Buy equity loan
Mortgage Lane offers guidance and access to the government’s Equity Loan Scheme, designed to assist first-time buyers in the UK with residential property mortgages. This scheme is an invaluable resource for those entering the housing market.
What is the Equity Loan Scheme?
The Equity Loan Scheme is a government initiative aimed at helping first-time homebuyers purchase a property. Under this scheme, the government lends you up to 20% of the cost of your newly built home (or up to 40% in London), so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
Who Can Apply?
This scheme is specifically tailored for first-time buyers who are purchasing a new-build home.
Eligibility criteria includes:
You must be a first-time buyer.
The property purchased must be a new-build.
The price of the property falls within the set regional price caps.
Terms of the Scheme
The equity loan is interest-free for the first five years.
From year six, a fee of 1.75% is charged, increasing annually by the Consumer Price Index (CPI) plus 2%.
The loan must be repaid after 25 years or earlier if you sell your home, with the repayment amount being a percentage of the market value at the time of repayment.
At Mortgage Lane, we specialise in helping first-time buyers navigate residential property mortgages with the assistance of the Equity Loan Scheme. Our expertise ensures you understand every aspect of the scheme, helping you make an informed decision about your first home purchase. Whether you’re looking for advice, eligibility checks, or application assistance, Mortgage Lane is here to support your homeownership journey.
Contractors
Mortgage Lane specialises in providing mortgages tailored for contractors, including CIS workers, IT contractors, and subcontractors. Our expertise in this area ensures that we cater to the unique mortgage needs of these professionals.
Contractor Mortgages at Mortgage Lane
Subcontractors and Self-Employment: Typically classified as self-employed, subcontractors are required to present SA302s and tax year overviews to lenders. These documents help in assessing affordability and verifying income.
Day 1 Contractors: We assist Day 1 contractors who have at least a 1-year track record in the same line of work. To qualify, contractors should have a minimum of 3 months remaining on their current contract. A signed copy of the applicant’s current contract is essential for the application process. Umbrella companies are also considered.
Income Requirements: For self-employed contractors, we calculate income based on the weekly rate multiplied by 48 weeks.
CIS Workers: Contractors in the Construction Industry Scheme (CIS) may need to demonstrate a 12-month track record. This can be done through 12 months of contractor statements or SA302s and tax year overviews.
IT Contractors: We offer specialised services for IT contractors, including those who are day 1 contractors or those transitioning between roles. Lenders can consider the affordability based on the contractor’s weekly rate, multiplied by 48 weeks, as a measure of income.
Mortgage Lane’s Commitment to Contractors
At Mortgage Lane, we understand the unique challenges faced by contractors in securing mortgages. Our team is dedicated to helping contractors navigate these challenges by providing tailored mortgage solutions that recognise the distinct nature of contract work. Whether you’re a CIS worker, an IT contractor, or a subcontractor, our expertise in contractor mortgages ensures that we can find a mortgage solution that fits your specific situation and income pattern.
For contractors looking for reliable mortgage advice and solutions, Mortgage Lane is the go-to broker, committed to offering customised support and accessible mortgage options.
TRY OUR Residential Property Mortgage CALCULATOR
Specialist residential property mortgage options
In an industry where lower cost lending usually demands a certain loan to income ratio or compliance with criteria points that can be hard to work around, we can often use specialist lenders to achieve more flexibility in accepting of complex incomes, or employment/income types.
We work with lenders that may accept 100% of the following income types:
- Second job
- Investment income
- Property income
- Pension contributions
- Car allowance
- Bonuses and commission
- Benefits
- Bereavement support allowance
ANSWERS TO COMMON QUESTIONS AND QUERIES ABOUT BUY TO LET MORTGAGES
How is affordability calculated on residential property mortgages?
Calculating affordability on residential mortgages primarily involves assessing your Loan to Income (LTI) ratio. This ratio is a crucial factor that lenders use to determine how much you can borrow in relation to your income.
Understanding the LTI Ratio:
The LTI ratio is calculated by dividing the mortgage amount by your annual income. For instance, if you want to borrow £200,000 and your annual income is £50,000, your LTI ratio could be 4 (200,000 ÷ 50,000).
Lenders typically offer LTI ratios ranging from 4 to 6 times your income. This means if your income is £50,000 per year, you might be eligible for a mortgage amount ranging from £200,000 to £300,000, depending on the lender’s criteria and your financial circumstances.
Factors Influencing Affordability Calculation:
Income: Your total income, including base salary, bonuses, overtime, and any additional sources like rental income or investments, is considered.
Existing Debts: Existing financial commitments, such as loans or credit card debts, are factored in as they affect your ability to make mortgage payments.
Living Expenses: Regular expenses, including bills, groceries, and other living costs, are accounted for to ensure you can comfortably afford the mortgage repayments.
Credit Score: A good credit score can positively influence the lender’s assessment of your affordability.
Interest Rates: The mortgage’s interest rate will affect the monthly repayment amount and, consequently, the overall affordability.
Mortgage Term: The length of the mortgage term also plays a role, as spreading repayments over a longer period can make monthly payments more manageable.
At Mortgage Lane, we assist in accurately calculating your affordability for residential property mortgages. We consider all the above factors and work with you to understand your financial situation, ensuring that the mortgage you take on is comfortably within your means. Whether you’re a first-time buyer or looking to remortgage, we provide expert guidance to help you make informed decisions about your mortgage options.
Can I get a residential property mortgage near a commercial property?
Obtaining a mortgage for a residential property situated near a commercial property is indeed possible, and at Mortgage Lane, we specialise in facilitating these types of residential property mortgages. Our experience and network enable us to work with lenders who are willing to consider such unique property locations.
Mortgages for Residential Properties Near Commercial Areas
While purchasing a residential property close to a commercial establishment can come with its challenges, it doesn’t necessarily disqualify you from obtaining a mortgage. We collaborate with lenders who understand and are willing to finance properties in these situations.
Lender and Valuer Considerations
It’s important to be aware that some mortgage lenders or valuers may have reservations about providing a mortgage or valuation for a property near a commercial area. These concerns are typically due to factors such as:
Kerb Appeal: Properties adjacent to commercial establishments might have a different street appearance or ‘kerb appeal’, which could be perceived as less attractive to potential buyers.
Resale ability Demand: Lenders often assess the potential demand for a property if it were to be resold. A residential property near a commercial area might be seen as having a lower demand in the resale market, affecting its perceived value.
How Mortgage Lane Can Assist
At Mortgage Lane, we recognise the unique aspects of purchasing a home near a commercial property and are adept at addressing these challenges. We guide you through the process, helping you understand the implications and finding lenders who are open to financing such properties. Our goal is to ensure you have access to suitable mortgage options, taking into account the specific location and characteristics of the property you are interested in.
Whether you’re looking to purchase a home near a shopping centre, industrial area, or any other commercial establishment, our team is here to provide the expertise and support needed to secure your mortgage. With Mortgage Lane, you can explore a wide range of residential property mortgages, tailored to meet the unique needs of properties in diverse locations.
How much deposit will I need for a residential property mortgage?
For a residential property mortgage, it’s possible to secure a mortgage with as little as a 5% deposit of the property’s purchase price. This lower deposit requirement is particularly beneficial for first-time buyers or those who may not have a substantial amount of savings.
A 5% deposit mortgage falls under higher Loan to Value (LTV) mortgages, meaning you’re borrowing up to 95% of the property’s value. While this can make property ownership more accessible, it’s important to consider that higher LTV mortgages might come with higher interest rates due to the increased risk to the lender.
At Mortgage Lane, we specialise in helping clients navigate the options available for residential property mortgages, including those with a 5% deposit. We work with a range of lenders to find a mortgage solution that suits your financial situation and homebuying goals. Our expertise ensures that we can guide you through the process, from understanding the implications of a higher LTV mortgage to securing the best possible deal for your circumstances.
Low leasehold residential property mortgage?
Mortgage Lane is adept at addressing the specific needs of residential property mortgages for flats with limited leasehold years remaining. Understanding the intricacies of leasehold tenure is essential for buyers considering these properties.
The Impact of Leasehold Tenure on Mortgage Approvals
Critical Role of Lease Length: In residential property mortgages, the leasehold term – the time left on the property’s lease – is a crucial factor. Shorter leases can pose challenges in securing financing, as they potentially diminish the property’s value and security from a lender’s perspective.
Mortgage Lane’s Solutions for Short Leasehold Properties
Working with Accommodative Lenders: Our network includes lenders who are flexible with lease terms, willing to finance flats with lease periods that may be as low as 25 years remaining at the mortgage term’s end. In some cases, these arrangements might be contingent on a lease extension plan.
The Importance and Process of Lease Extensions
What a Lease Extension Entails: Extending a leasehold involves legally increasing the lease’s duration. This process not only enhances the property’s appeal to lenders but also adds to its market value.
Utilising Section 42 Notice: To begin a lease extension, a solicitor generally issues a Section 42 Notice to the freeholder on the leaseholder’s behalf. This formal request initiates the lease extension negotiations, which are crucial in securing longer lease terms.
The Advantages of Lease Extensions in Residential Mortgages
Improving Mortgage Approval Chances: Extending the lease can significantly boost the likelihood of mortgage approval. It’s a strategic approach for properties with shorter leaseholds to meet lending criteria.
Enhancing the Property’s Value: Beyond mortgage considerations, a lease extension can increase the property’s resale value, making it a sound investment.
Guidance from Mortgage Lane: We offer guidance in navigating the mortgage process for short leasehold properties. It’s important to remember, however, that Mortgage Lane does not provide legal, tax, or valuation advice. We recommend consulting with legal experts, particularly concerning lease extensions and property valuations.
Our aim at Mortgage Lane is to assist clients in understanding and managing the unique challenges of obtaining residential property mortgages for flats with short leaseholds, ensuring they are well-equipped to make informed property and financing decisions.
Can I overpay on my residential property mortgage?
Yes, you can overpay on your residential property mortgage, but the specific terms vary between lenders. Many mortgage lenders offer an overpayment facility, typically allowing you to pay up to an extra 10% of your mortgage balance per annum without incurring any penalties. This option can be a great way to reduce your mortgage balance faster, potentially saving you money on interest over the long term.
However, it’s important to be aware that some lenders may impose penalty charges for overpayments beyond their stipulated limit, especially during fixed-rate or discounted interest rate periods. These penalties are often in place to offset the loss of interest income for the lender.
At Mortgage Lane, we can assist you in understanding the overpayment terms of different residential property mortgages. We guide our clients in choosing a mortgage that not only fits their current financial situation but also offers the flexibility they desire for future payments. Whether you’re looking to make regular overpayments or occasional lump sum payments, we ensure you’re fully informed about any potential charges or restrictions.
Can I get consent to let?
Yes, you can obtain consent to let for your residential property mortgage, but it’s important to understand that this should not be pre-empted or assumed as a guaranteed option. Mortgage Lane, as an expert broker, can guide you through this process.
Understanding Consent to Let
Consent to let is an agreement from your mortgage lender that allows you to rent out your property under the terms of your existing residential mortgage. This is typically sought by homeowners who need to let out their property temporarily, perhaps due to a change in circumstances like relocation for work or personal reasons.
How Lenders Approach Consent to Let
Lenders usually grant consent to let on a case-by-case basis. It’s not an automatic entitlement and often depends on your circumstances and the lender’s policies.
Obtaining consent to let usually involves paying a higher interest rate or a fee, as letting out the property presents a different risk profile compared to owner-occupation.
Some lenders might not offer consent to let if it contravenes their lending criteria, particularly if the mortgage was initially taken out on a residential basis.
Mortgage Lane’s Role
At Mortgage Lane, we specialise in residential property mortgages and can assist you in navigating the consent to let process. We’ll help you understand the specific terms and conditions of your mortgage lender, and provide advice on how to proceed with requesting consent to let. Our expertise ensures that you make informed decisions that align with both your lender’s requirements and your personal needs.
Whether you’re considering letting out your property for a short period or looking at longer-term options, Mortgage Lane is here to offer expert advice and support throughout the process.
Are residential property mortgages regulated?
Yes, residential property mortgages are regulated. In the United Kingdom, residential mortgages are regulated by the Financial Conduct Authority (FCA). The FCA ensures that mortgage lenders and brokers adhere to specific rules and standards designed to protect consumers. This regulation covers various aspects of mortgage lending, from the initial marketing and promotion of mortgage products to the advice given to customers, the affordability assessments conducted by lenders, and the handling of any complaints.
This regulatory framework is in place to ensure that mortgage products are suitable for the customers’ needs and that borrowers are treated fairly throughout the mortgage process. It also means that if you have any issues with your mortgage provider, you have the right to lodge a complaint and seek redress.
At Mortgage Lane, as an expert broker, we strictly adhere to these regulations, ensuring that all our practices and the advice we provide are in compliance with FCA guidelines. Our commitment to these regulations means that our clients can trust the services and advice we offer, knowing they are protected and supported within a regulated environment.
Can I get a residenital mortgage near a power station or powerlines?
Yes, you can obtain a mortgage for a property located near powerlines, especially when considering residential property mortgages.
When pursuing a mortgage for a property near powerlines, it’s important to inform your mortgage broker about this detail early in the application process. Transparency regarding the property’s location can help prevent potential declines from lenders. Some lenders may adjust the loan to value (LTV) ratio if the proximity to powerlines is only revealed during valuation.
However, a significant number of lenders are open to financing properties near powerlines, with many offering up to 95% LTV for residential property mortgages in these situations.
Lender Considerations for Properties Near Powerlines
While some lenders may have concerns about financing properties near powerlines, mainly due to the potential impact on property value, there are still many who do not see it as a significant issue. Properties close to powerlines can sometimes be perceived as having lower resale values, which could affect the property’s security for the loan.
At Mortgage Lane, we are skilled in navigating these specific mortgage challenges. Our expertise in residential property mortgages allows us to connect you with lenders who are comfortable with financing properties near powerlines, ensuring you find a mortgage solution that aligns with your needs. We aim to make the mortgage process smooth and straightforward, regardless of the property’s location.
Can I get an interest only residential property mortgage?
Yes, it is possible to obtain an interest-only residential mortgage, a type of residential property mortgage where you pay only the interest on the loan each month. Mortgage Lane can assist applicants in exploring these mortgage options.
Understanding Interest-Only Residential Mortgages
In an interest-only mortgage, your monthly payments cover only the interest on the loan, not the principal amount borrowed. The full loan amount remains the same throughout the mortgage term and is typically repaid at the end of the term.
Loan to Value (LTV) Considerations
The maximum LTV for interest-only residential mortgages is generally capped at 85%, but more products are readily available at 75% LTV and below.
At higher LTV ratios, particularly when the LTV exceeds 50%, lenders might require substantial equity in the property. For instance, if the repayment vehicle is the sale of the subject security, you must have at least £200,000 of equity at the time of application.
Part and Part Mortgages
Part and Part mortgages combine interest-only and repayment mortgages. You can borrow up to 85% LTV on an interest-only basis and an additional 10% on a capital and repayment basis, totaling up to 95% LTV.
This arrangement allows for lower monthly payments than a standard repayment mortgage while reducing the overall loan balance over time.
Repayment Vehicles
A repayment vehicle is a strategy planned to repay the loan at the end of the term. Common repayment vehicles include the sale of the security property, investment bonds, downsising, or pension plans.
Some lenders require a minimum equity amount in the property to qualify for an interest-only mortgage, often around £150,000, though this can vary with different lenders and may be indexed on regional indices.
Mortgage Lane’s Assistance
At Mortgage Lane, we specialise in providing guidance and access to various residential property mortgages, including interest-only options. Our expertise ensures that we can help you understand the nuances of interest-only and Part and Part mortgages, including eligibility criteria like minimum equity requirements and suitable repayment vehicles.
Whether you’re considering an interest-only mortgage for flexibility or a Part and Part mortgage for a balanced approach, Mortgage Lane is equipped to offer tailored mortgage solutions. We ensure that applicants are well-informed and choose a mortgage that aligns with their financial goals and circumstances.
Do I need to repay an interest only mortgage at the end of the term?
Interest-only mortgages are a distinct type of residential property mortgage where your monthly payments cover only the interest on the loan, not the principal amount. This means that at the end of the mortgage term, the initial sum you borrowed remains outstanding. Consequently, it’s crucial to have a solid repayment strategy in place for this principal amount.
While you have the option to make additional payments towards the principal during the loan’s term, it’s important to establish a clear plan for fully repaying the mortgage. This repayment can be managed through various means, such as utilising funds from other investments, tapping into savings, or choosing to remortgage the property at the end of the term.
At Mortgage Lane, we guide our clients in understanding and managing interest-only residential property mortgages. We help you explore and set up viable repayment strategies, ensuring that you are well-prepared for the end of the mortgage term. Our focus is on providing you with comprehensive advice and options that align with your financial situation and long-term housing goals.
How do I get a residential property mortgage with bad credit?
There are residential property mortgage lenders that accommodate applicants with adverse credit histories. Whether you have experienced missed payments, County Court Judgments (CCJs), defaults, or even an Individual Voluntary Arrangement (IVA), we at Mortgage Lane can help you find a suitable lender for your residential mortgage. If you have been discharged from bankruptcy, you’ll find that your mortgage options typically improve after 3 years, and they continue to broaden after 6 years. Our expertise lies in sourcing the right mortgage solution for those with challenging credit backgrounds, ensuring you have access to options that fit your unique financial situation.
Where do you broker Buy to Let mortgages in the UK?
We assist our clients with residential property mortgages in England, Wales, Scotland and Northen Ireland.
EXPLORE OUR LATEST NEWS AND IN-DEPTH BLOG ARTICLES
At Mortgage Lane, we see the most complex of residential property mortgage applications, some of which make a good read for investors looking to learn from other applicants challenges, or for those effected by the topics! See more buy to let mortgage topics covered in our blog here.
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