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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Fantastic service from start to finish. Andrew and Laura assisted with the purchase of mine and my partners first home, it was great to know that we were in safe hands throughout. Highly recommend!
Noah Kirby
I am so glad that we worked with Thameside Mortgages for the purchasing of our first home. From initial enquiries, guidance whist making an offer on the house, to getting a mortgage offer & insurance options, we cannot fault their service! Jason always made us feel informed, in control and aware of all our options. 10/10 and we would definitely recommend to our friends and family! Thameside eliminated all the fears & stress we thought we would have, and made the experience easy and clear. Thank you very much!
Sainimili Kata
We used Thameside Mortgages for our recent mortgage application and cannot speak highly enough of Andrew and his team. They were professional and attentive from the outset and helped us through every step of the process. Andrew consistently communicated with us throughout to ensure the process was as easy and streamlined as possible, and we felt we received a completely personal service. I wouldn’t hesitate to recommend Thameside Mortgages for anyone considering a mortgage application in the future and will definitely utilise their service again.
Sarah Blanks
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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
First class and professional service. The advice given on various mortgage products, terms and insurance options were excellent. Throughout the sale/purchase they were in constant contact with my solicitor and estate agent, and kept me up to date regularly. Would highly recommend.
Nick Harris
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
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We used Thameside Mortgages for our mgt for our new property. We had professional and brilliant service from Andrew and his team. I would highly recommend Thameside Mortgage as they go over and above what I expected from them. Thank you so much Andrew and your team X
Kelly Carberry
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
I really can’t recommend Thameside Mortgages enough. From start to finish, the process was very well explained and completely hassle free. They found me an amazing deal and their communication, responsiveness and support was second to none. A heartfelt thank you to Andrew, Laura and Lydia; keep up the brilliant work.
David Leece
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Excellent service. Helped me through the process of finding best mortgage deal. Cant recommend them enough.
Alan King
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
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
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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
I had heard great things about Thameside Mortgages before we used them to buy our new home, and they certainly did not disappoint! Andrew and his team were friendly, thorough and efficient from start to finish, which made what initially felt like a daunting process completely stress free. The team went above and beyond on multiple occasions, including to resolve a couple of unforeseen issues that we encountered with our mortgage application, proving that we couldn’t have done it without them! I will definitely be using them again for any future house purchase / remortgage.
Michaela Peck
This is the second time I've instructed Andrew Sheen at Thameside Mortgages to find and secure the right deal for me. On both occasions I've had complete confidence in his ability to work with my best interests at heart. So professional and personable, I hope to always work with him when moving house or remortgaging. Not to mention, he's also a really top bloke. Thank you Andrew and team. Let's do it all again in 5 years time.
Tom Denton
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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
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
We brought our first home nearly 2 years ago, we had Jason Harris as our advisor. I can’t put into words how much he helped from the very first call to present day with our remortgage and life insurance. Jason has been incredible from the get go, it felt as though we didn’t have to do anything really, as he found everything for us and gave multiple options so all we did was say yes or no. He broke everything down and explained things in such a simple way for us to not get too overwhelmed. He made everything feel stress free and simple, as well as finding us an incredible offer twice he has also found cheaper life insurance policies for us which is something I didn’t even think to do, he has saved us £100’s of pounds overall with our new offers. Really appreciate having him as our advisor and he’s a really helpful and lovely guy. Thank you Thameside & Thank you Jason.
chelsea melbourne
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Great service from start to finish, made the whole process very smooth and easy
Chris Lewis
We've bought our first home with Thameside Mortgages and it was a wise decision to choose them over others. Andrew made sure that everything is done for us and helped us beyond our expectations. Both he and Laura are very responsive, professional and welling to help anytime is needed. Our journey was a long one, being a chain but they stood side by side with us the whole process even in this difficult time. If I should choose again I would definitely choose them again. I recommend them 100%. Well done Thameside Mortgages 👌
Partene Ramona
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
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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 fantastic. They helped me through the whole mortgage process and were totally supportive. I was not only trying to buy a house but also remortgage my old one at the same. I can t tell you how stressed I was but Andrew and Lydia were amazing and walked me through the whole process. They will always do their best to help you. Believe me you are in safe hands with them. Thanks Sharon
Shaz Call
Andrew and his team were so helpful, quick and professional and once we moved into our new home they sent us the most amazing welcome gift. I can highly recommend them to everyone. A massive thank you for making our mortgage process for our first home so smooth and easy!
Whitney Osman
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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
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
I've used Andrew from Thameside Mortgages twice now, i'd highly recommend his service. The information provided was very in-depth and easy to understand. My most recent mortgage offer was about to complete, when Andrew called and had found a better rate and saved us more money which was a lovely surprise 🙂 Would use his service again!
matt grix
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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
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
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
