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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

  • 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 Avatar Alison King

    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 Avatar chelsea melbourne

    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 Avatar Partene Ramona
  • I was highly recommended Thameside Mortgages and they didn't disappoint! The process was stress free, professional and very efficient. Nothing was a problem. Everything was explained fully and no question was to much trouble to answer in a way that I could understand. I also took out insurances too which were highly competitive! Great company and service received.

    Laura Biggs Avatar Laura Biggs

    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 Avatar Claire Shepherd

    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 Avatar Philip Ismail
  • 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 Avatar J

    Andrew and Laura have been very helpful every time we have spoken to them. They have quickly processed our transactions and responded to any issues immediately. We highly recommend Thameside Mortgages and all the services they offer. Thank you for helping us through our recent propert purchase.

    Gilly Wright Avatar Gilly Wright

    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 Avatar Lauren Cosgrove
  • Great service from start to finish, made the whole process very smooth and easy

    Chris Lewis Avatar Chris Lewis

    Absolutely the best, most helpful and speedy broker I've ever worked with - Thameside sorted everything including finding the right mortgage and insurances for me, guiding me through the applications and keeping me posted throughout the process. Particular thanks for their endless patience with me dithering over every decision, but because of their honest and clear advice, I'm completely comfortable I've made the right choices. I really couldn't recommend these guys enough!

    Kate D Avatar Kate D

    Jason was very knowledgable and calm during the whole process and always available to answer my questions. I would definitely use Thameside again.

    Kerry Briggs Avatar Kerry Briggs
  • 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 Avatar Pamela Payne

    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 Avatar Rajen Saraswati

    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 Avatar Erin LaBelle
  • 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 Avatar Nick Harris

    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 Avatar Shaun Bradford

    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 Avatar Cheryl Zammit
  • Andrew and Laura at Thameside Mortgages were incredibly helpful in guiding me through the home buying process. They answered all of my questions and were in regular communication with me throughout. They were invaluable with also helping to communicate with my solicitor to ensure that my purchase went well. I can highly recommend them to anyone looking for a friendly, knowledgeable and professional advisor.

    yordanos yimmesghen Avatar yordanos yimmesghen

    Huge thank you to Andrew, Laura & the team for all their help in sorting out my sons remortgage. In what was an extremely difficult time for us as a family they went above & beyond to make sure everything was dealt with quickly & efficiently, searching the market to obtain the best possible deal for him. Highly recommend their service & Andrews knowledge was an absolute godsend. Thank you all once again for the excellent service, we will certainly recommend you as often as possible 😊

    Helen Clarke Avatar Helen Clarke

    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 Avatar Sainimili Kata
  • 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 Avatar Surj

    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 Avatar Nicholas Anscombe

    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 Avatar Jordan Smith
  • 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 Avatar Sarah Blanks

    Andrew & Laura were amazing at Thameside Mortgages. They were able to secure us a mortgage after we purchased the property, so only a few lenders were available to us. We were happy with the mortgage they recommended. The conveyancer wasn't the best, but Andrew & Laura pushed that side too. This is the second mortgage I've got through Thameside Mortgages and I will definitely use them again! Can't recommend them enough. Fantastic service, always available and happy to help. Thanks guys 🙂

    paul sharp Avatar paul sharp

    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 Avatar matt grix
  • I could not recommend Thameside Mortgages More! Andrew is always fantastic to deal with, he is always extremely responsive, supportive and helpful! Thanks to the team at Thameside and Andrew for your constant support!

    Larissa Tait Avatar Larissa Tait

    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 Avatar Laura Ward

    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 Avatar Christian Willmore
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