Mortgage Types Guide
Residential Mortgages
A residential mortgage is a type of loan used to purchase a property that will be used as the borrower’s primary residence. This type of mortgage is usually provided by a bank, building society, or other financial institution, and is secured against the property being purchased.
With a residential mortgage, the borrower usually makes a deposit towards the purchase price of the property, and then borrows the remaining amount from the lender. The borrower then makes monthly mortgage repayments to the lender, which typically include both the principal amount borrowed and the interest charged on the loan.
Residential mortgages are available in a range of different types, including fixed-rate mortgages, variable-rate mortgages, and tracker mortgages. The interest rate on a residential mortgage can be either fixed for a set period of time or can fluctuate over the term of the loan, depending on the type of mortgage and the lender’s policies.
In order to be eligible for a residential mortgage, borrowers must meet certain criteria, such as having a good credit history, being able to afford the mortgage repayments, and having sufficient income to support the loan. The amount that can be borrowed through a residential mortgage will also depend on a range of factors, including the borrower’s income, credit history, and the value of the property being purchased.
Overall, a residential mortgage is a common way for people to purchase a home, and can provide a reliable and affordable way to finance a property purchase over the long term.
BTL Mortgages
A buy-to-let mortgage is a type of mortgage that is specifically designed for people who want to buy a property with the intention of renting it out to tenants. Buy-to-let mortgages are not available to people who intend to live in the property themselves.
Unlike a residential mortgage, which is based on the borrower’s income and ability to make repayments, a buy-to-let mortgage is generally based on the expected rental income of the property. Lenders will typically require the rental income to be at least 125-145% of the mortgage payments (depending on your personal tax status) at a predetermined interest rate, depending on the product type selected, to ensure that the borrower can afford to make the repayments even if the property is unoccupied for a period of time.
Where there is a shortfall in the rental income required, some lenders will allow a borrower to ‘top slice’.
Top slicing is where a mortgage lender considers the borrower’s overall income and assets, rather than just the rental income generated by the property when assessing affordability for the mortgage. This means that if the rental income is not sufficient to meet the lender’s affordability criteria, the borrower may be able to use their personal income or other assets to “top up” the rental income and meet the lender’s requirements.
Top slicing is typically used for borrowers with a high net worth or significant income from other sources who are looking to invest in property but may not meet the strict rental income requirements of some lenders. However, it is important to note that not all lenders offer top slicing, and the specific terms and criteria may vary depending on the lender and the product being offered.
Buy-to-let mortgages can come with higher interest rates and fees than residential mortgages, as they are considered higher risk. However, they can also offer the potential for income and capital growth if the property increases in value over time.
It’s important to carefully consider the costs and risks associated with buy-to-let mortgages, including the costs of maintaining the property, finding tenants, and the possibility of void periods when the property is unoccupied. It’s also important to comply with all legal requirements for landlords, including obtaining the necessary licenses and complying with health and safety regulations.
Ltd Company BTL Mortgages
A limited company buy-to-let mortgage is a type of mortgage designed for landlords who own rental properties through a limited company structure rather than as an individual. In recent years, many landlords have started to use limited companies as a way to hold their buy-to-let properties, in part because of changes to tax rules that make it less beneficial for individuals to hold rental properties.
With a limited company buy-to-let mortgage, the lender provides funding to the limited company rather than to the individual landlord. The limited company is then responsible for managing the rental properties, including finding tenants and maintaining the properties.
Limited company buy-to-let mortgages can offer several benefits to landlords, including tax advantages and limited liability protection. However, they can also come with higher interest rates and fees than individual buy-to-let mortgages, as they are considered higher risk.
It’s important for landlords to carefully consider their options and seek advice from a qualified professional, such as a financial advisor or accountant, before deciding whether a limited company buy-to-let mortgage is right for them.
IT Contractor Mortgages
An IT contractor day rate mortgage is a type of mortgage that is specifically designed for IT contractors who are paid on a daily rate or hourly basis. With this type of mortgage, lenders can consider the daily rate of pay, rather than the usual self-employed income, when calculating the amount that can be borrowed. This is because IT contractors typically work on short-term contracts and their income can fluctuate greatly, making it difficult to assess their affordability using traditional methods.
To qualify for an IT contractor day rate mortgage, the contractor will typically need to have a track record of contract work and a history of consistent income. They will also need to provide evidence of their current contract and projected future earnings. The mortgage will usually be assessed based on the contractor’s average daily rate over the past 12 months, rather than their current rate, to take into account any fluctuations in income. However, lender shave different criteria and can consider newer entries to the industry.
IT contractor day rate mortgages are a niche product and are offered by specialist mortgage lenders who understand the unique needs of contractors. They can be a good option for IT contractors who may struggle to secure a traditional mortgage due to their income structure.
Second Charge Mortgages
A second charge mortgage, also known as a second mortgage, is a type of loan that allows homeowners to borrow money against the equity they have built up in their property. This type of mortgage is separate from the homeowner’s primary mortgage and allows them to borrow additional funds without having to remortgage their property.
A second charge mortgage is secured against the borrower’s property, meaning the lender has the right to repossess the property if the borrower defaults on their payments. Because of this added security, second charge mortgages may have lower interest rates than other types of unsecured loans.
Second charge mortgages are often used for home improvements, debt consolidation, or other large expenses. They can also be used for investment purposes, such as funding a buy-to-let property. It’s important to note that the borrower is responsible for making repayments on both their primary mortgage and the second charge mortgage.
Equity Release Mortgages
An equity release mortgage, also known as a lifetime mortgage, is a type of mortgage product available specifically designed for homeowners who are 55 years or older. It allows homeowners to release some of the equity in their property as a lump sum or regular income, without having to sell their home or make any monthly repayments.
The amount that can be released depends on the age of the homeowner, the value of the property, and the amount of equity they have in it. The loan, including the interest accrued, is repaid when the homeowner dies or moves into long-term care, and the property is sold. The lender will then take their share of the proceeds from the sale, with any remaining funds going to the homeowner or their estate.
Equity release mortgages can be a useful way for retirees to access some of the equity tied up in their property to supplement their income or fund their retirement, but it’s important to understand the costs involved and the impact it may have on inheritance for loved ones. Therefore, it is important to seek independent financial advice before considering an equity release mortgage.
The Financial Conduct Authority does not regulate building surveyors.
Thameside Mortgage Ltd are not regulated by The Royal Institution of Chartered Surveyors, we do not have any involvement in the provision of this type of service / activity. We are not qualified surveyors and the information provided on this website is for informational purposes only. The information provided is not intended to be a substitute for professional advice, inspection, or survey.
It is important to seek professional advice and to undertake a proper survey/inspection before making decisions or taking actions related to a property.
What Our Clients Are Saying
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Thameside Mortgages, Jason Senior Financial Adviser is the most proactive Adviser I have had the pleasure of working with. He helped me not only with the purchase of my Property 5 years ago but also with my Remortgage couple days ago, very versatile with a lot of knowledge and huge experience a really great, amazing person. My e-mail was answered frequently within a minute, he was quick on the document chase. Friendly professional, service, I definitely recommend it. And very decently. Thank you so much Jason.
stanislaw oleniacz
After the purchase of our property we were in search of a good mortgage broker and our estate agent recommended Andrew. After speaking to Andrew we were confident we had found the right person to entrust finding us something as important as our first mortgage. We provided Andrew with all the necessary details and with his extensive experience and knowledge in this field, he was able to find us a very good mortgage deal. It was a pleasure working with Andrew and he was there to help and support us from the initial stages of the mortgage to the final completion day. When we needed to remortgage, Andrew helped us find another good deal, providing the same care and support as before. I would definitely recommend Andrew to anyone who is looking for an experienced and professional yet very approachable and friendly expert broker who will help guide them through the whole mortgage process. Thank you so much Andrew and Lydia for all your help recently.
Pam Mehroke
Having used a number of mortgage advisors in the past, I can say that Thameside were a breath of fresh air. We have an unusual situation and were told we couldn’t get what we needed from other advisors. Thameside were able to arrange a mortgage and kept us updated constantly and were available any time to discuss all the usual issues. Highly recommend to anyone looking for a mortgage.
Christian Willmore
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This is the 3rd time I have used Thameside Mortgages , I was so impressed with their professionalism and quick response. They helped me through every step of the way and continue this service after completion. It was such a pleasure throughout the whole process , I would definitely recommend this company to all my friends and family . Mrs Pamela Payne
Pamela Payne
Impeccable service from Andrew and his team @ Thameside Mortgages. Very helpful, thorough and professional service. What’s more, we were under time restraints due to the temporary reduced rates of stamp duty; Thameside exceeded our expectations and got the job done with the mortgage secured and plenty of time to spare; a pleasant experience all round. Thanks Thameside!
Carl Jago
We used Thameside Mortgages for the purchase of our first home. We had both a professional and brilliant service from Andrew and his team. I would highly recommend Thameside Mortgages. They go above and beyond and guided us through the whole process. Thank you so much Andrew.
Alice Gedge
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I've been working with Andrew and his team for a few years now. After recently completing a re-mortgage with Thameside I thought I'd leave a quick review to help others looking for help with the mortgage and to show my appreciation to everyone at Thameside. Their customer service is fantastic. Each time the process is completely stress free. The team are knowledge and always willing to go above and beyond to help make the process go smoothly. They take the time to explain the products they offer in a way that is easy to understand. They are profession and personable at the same time. I especially like the person touches the team do, like sending a thank you card on completion. I would highly recommend the services they offer. Keep up the good work Thameside.
Surj
Thank you to Thameside Mortgages to Laura and Andrew, helping me get the mortgage, they were both very professional. The mortgage was smooth and efficient. I had difficulties with the solicitor, but Laura and Andrew have been there to support me throughout. I will definitely be in contact for a future mortgages. Happy to recommend to anyone.
chong brown
Andrew, Laura and the Thameside team were fantastic and delivered a brilliant result for us. They were able to secure two competitive mortgages for our remortgage and new house purchase. These were secured in a matter of weeks and then Thameside guided us through a tricky exchange and completion process with minimal fuss and stress. Thank you Thameside for a providing a wonderful service and we’ll sure to be back again in the future!
William McCann
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Andrew and the Team were not only extremely knowledgeable in their field, but extremely professional and thorough throughout the process. I can't recommend the team enough and would strongly urge engaging the team for your mortgage and life insurance management. Thank you Thameside Mortgages.
Matthew Harrison
I recently used Thameside Mortgages and their recommended solicitors when purchasing my property I can’t recommend them enough! Not only do I feel that I ended up with a very competitive mortgage, from start to finish the team kept me up to date on the progress of my mortgage application and the conveyancing process. They were always very quick to reply to any questions I had and I credit them with helping me exchanging contracts within just 7 weeks. Andrew, Lydia and Laura, thank you so much for all your help. I can’t thank you enough!
Erin LaBelle
Fantastic guidance and service all the way through the process of our purchase. Very quick to respond to our questions and would certainly recommend.
Aaron Jago
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Couldn't recommend Thameside Mortgages enough, both Andrew and Laura have and continue to be a huge support in the process for us. We have been kept up to date at all times, provided as much information as possible and have received helpful responses to any queries we have had. They have made a stressful process much easier and we couldn't have wished for a better service.
Laura Ward
From start to finish Thameside Mortgages have been available and very helpful in guiding us through not only moving house, but also remortgaging in these difficult times. I can’t tank Andrew, Laura and Lydia enough for their care and fantastic work ethic! Will definitely be using them in the future!!
Chris Bassett
I used Andrew and team 5 years ago and they were brilliant, I couldn't recommend them enough. Recently used them for my renewal and nothing was a problem and felt easy to complete. First class hassle free!!
Shaun Bradford
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We’ve been using Andrew for over 10 years, the service, knowledge and expertise he provides is exceptional! From our first time mortgage to re-mortgage, Andrew has always obtained extremely competitive rates vs what you would find on the market and is extremely responsive throughout the process. We also have our life insurance policies with Andrew, which we have found to be incredibly competitive. All around a great team and I would highly recommend Thameside Mortgages to anyone.
Philip Ismail
Thameside Mortgages have been nothing but patient, informative and thorough. Andrew and Laura have been great, providing continued support and really taking the time to explain all the questions we sent their way. Their knowledge and expertise is apparent straightaway. Would highly recommend!
Rosie Woods
Andrew & Laura at Thameside Mortgages were an absolute godsend. Having them as our Mortgage Broker was so worth the money. They had excellent communication, were brilliant at chasing our lender and keeping things moving quickly, they were also fantastic at finding the best mortgage deal and helping you with every step of the way. They made the whole process so much easier, especially as we were first time buyers and had no clue what we were doing. They help you with all the paperwork and make the process far less overwhelming. I cannot recommend them enough, book them you will not regret it.
Nicholas Anscombe
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Andrew and Laura provided an exceptional service and my partner and I are extremely grateful for their services. They were both on hand to answer any questions or queries without hesitation and provided clear, concise and accurate information. As first time buyers and with one of us being self employed, it proved extremely difficult for us to get a mortgage (especially in a pandemic), however Laura and Andrew both went above and beyond to ensure we were looked after and for that we are extremely thankful.
Hazel McCarthy
Great service from start to finish, made the whole process very smooth and easy
Chris Lewis
Introduced to Mr Sheen in 2016 and using his services for me and my family since then. When I was looking for the second mortgage, I was unable to find him at his earlier employers, as he had meanwhile started Thameside Mortgages. I spent two days on internet, found him and contacted. I appreciate 7 respect his services, integrity & professionalism.
Rajen Saraswati
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Andrew has dealt with our mortgage and remortgage since we bought our first home 12 years ago. The service and advice is always spot on, hence why we always return without question. It's peace of mind knowing we can trust Thameside to take care of everything and give us the advice we need.
Rhys Jones
Both Andrew and Laura were extremely helpful and responsive from start to finish. I highly recommend using Thameside Mortgages, we will definitely use them again.
Jake Whitford
Thameside were amazing! Made the process completely stress free and felt informed throughout. I’ll go with them every time.
Ellie Blackall
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Thameside mortgages made getting a mortgage so easy ,even for a tech phobe like myself Laura was so professional ,always their to answer any questions I was kept up-to-date through the whole process ,no stress at all Would recommend to anyone ,5 * isn't enough Massive thank you to Andrew & Laura Well done
Cheryl Zammit
My partner and I have used Andrew and his team several times now and will continue to do so, or recommend him, wherever possible. Whether it’s a mortgage, buildings, contents or life insurance, Andrew and his team, without fail, go above and beyond in delivering an exceptional service and client experience from start to finish. Andrew and his team respond speedily by email and/or make themselves available to speak directly. Their insight is incredibly valuable and offer kindness and patience too at a time when decisions can be more challenging. Additionally, Andrew has offered suitable products where other advisers have been unable. Thank you Thameside - you are absolutely our ‘go to’ and your service is genuinely appreciated at a time when it is needed!
Claire Shepherd
We have used Thameside Mortgages now for six of our remortgages over many years. Andrew and his team have been absolutely outstanding. They have always delivered on the best mortgage for us, based on our changing family circumstances, and also have brought ideas and advice that has been extremely helpful to guide us in making the best choice. What has been very impressive is that they are focused on a long-term relationship, not simply a quick commission, and have a few times taken us to mortgage offer stage, where we have backed out for various personal reasons, and they have not asked for any payment for much time and effort on their part getting that far in the process. I am reassured to know where to go for our mortgage advice!
J
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Andrew and the team at Thameside Mortgages provided a fantastic service throughout our re-mortgage process. From detailing how it all works and what steps we have to take along the way with taking care of our best interests. Andrew was also able to sort out life insurance for me and my partner ensuring we are protected with what we seemed necessary. I very much look forward to using Thameside Mortgages in the future and would recommend anyone else to do so.
Jordan Smith
Andrew and Laura were attentive to all our needs and gave us all the facts to help us make informed decisions. They were more than happy to answer our many many questions and always did so in a very timely manner. We had some issues with our solicitors taking too long to action paperwork but both Andrew and Laura chased things up on our behalf. The support and guidance along the way was definitely appreciated. We shall definitely use Thameside Mortgages again!
Alison King
I genuinely can't thank Andrew and Laura enough for all of their hard graft through a very stressful process! The sleepless nights have been totally worth it!! I couldn't have done this with out your superb guidance. Professional, caring, excellent communication, explations to a solo first time buyer that doesn't always understand the jargon that comes with process. I was told by several people I didn't earn enough, needed a partner, better paid job to get on the property ladder. Andrew took this as a challenge and found me an excellent mortgage deal, twice!! I am so, so happy that I chose them to make this a lot easier. I genuinely can't recommend Thameside Mortgages enough. Forever grateful!
Lauren Cosgrove
