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Mortgages can be intimidating, especially when you’re making a significant financial commitment. Whether you’re buying your first home or looking for a new property to invest in, understanding residential mortgages can help you make informed decisions.
As a leading, experienced mortgage broker, Ascot Mortgages Ltd aims to simplify this process. We will guide you through the complexities of the residential mortgage journey, making it less intimidating and more straightforward.
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A residential mortgage is a long-term loan that allows you to purchase a home. The property acts as collateral, providing security to the lender. If you fail to make repayments on time, the lender has the right to take possession of your property.
In the UK, a standard residential mortgage requires you to provide a deposit of a minimum of between 5 – 10% of the property’s value. However, this could vary depending on your financial circumstances and the lender’s criteria.
Ascot Mortgages Ltd offers free initial financial advice, helping you understand what deposit might be required for your own unique situation. We’ll guide you through the abundance of options, helping you find the perfect deal.
The loan to value ratio (LTV) refers to the amount you wish to borrow compared to the value of the property. It’s a crucial factor lenders consider when assessing your mortgage application. The higher your LTV, the higher the risk you pose to the lender.
Interest is the cost of borrowing money, and it’s calculated as a percentage of the loan. For a residential mortgage, interest can be applied in various ways, such as fixed, variable, or tracker rates.
There are primarily two types of residential mortgage rates – fixed and variable.
Fixed rates mean your interest rate will remain the same for a set period, while variable rates fluctuate according to the lender’s standard variable rate (SVR) or external factors like the Bank of England’s base rate.
Ascot Mortgages Ltd can help you navigate these complex terms, ensuring you get the best residential mortgage rate tailored to your needs.
Monthly repayments are essential for any residential mortgage, as they allow you to repay the capital borrowed and the interest accrued over the term.
Your monthly repayments will depend on the amount borrowed, the term of the loan, and the interest rate. It’s important to understand how these payments are calculated to budget effectively.
Most residential mortgages in the UK operate on a capital and interest repayment basis. You pay back a part of the loan (capital) plus the interest accrued each month.
In an interest-only mortgage, you only pay the interest each month. The loan’s capital is repaid in full at the end of the term.
Missing monthly repayments could lead to severe consequences. The lender could charge you late fees, and persistent failure to pay may result in the lender repossessing your property. This can also have an adverse effect on your future ability to borrow money.
At Ascot Mortgages Ltd, we make it our priority to provide simple, fast, and hassle-free service to ensure you understand your obligations.
Finding the best residential mortgage involves considering your individual circumstances, market trends, and various lenders’ offerings.
Ascot Mortgages Ltd stands out as a residential mortgage broker who will search across the market for you. We are committed to offering honest, reliable mortgage advice, tailored to your circumstances. We take the time to cut through the various rates, features, and fees, securing the right mortgage for you.
In conclusion, understanding the intricacies of a residential mortgage can be a daunting task, but it doesn’t have to be. At Ascot Mortgages Ltd, we’re here to help you navigate this complex landscape, simplifying the process, and securing the best residential mortgage for you. Trust us to help make your dream home a reality.
The amount you can borrow typically depends on your income, credit history, and current financial obligations. Most lenders offer up to 4-4.5 times your annual income. However, when you’re ready, we can provide a more personalised estimate.
Typically, you’ll need proof of identity, proof of address, last 3 months’ bank statements, and proof of income (e.g., payslips or accounts if self-employed). We’re here to help you gather the necessary documentation when you’re ready.
Yes, it’s possible to switch from a buy to let mortgage to a residential mortgage, though you’ll need to meet the lender’s affordability criteria and may face early repayment charges on your buy to let mortgage. Reach out when you’re ready, and we can guide you through the process.
Yes, you can have more than one residential mortgage, for example, if you’re buying a second home or helping a family member purchase a property.
To get consent to let on your residential mortgage, you’ll need to apply through your mortgage lender. They may set certain conditions and may increase your interest rate or charge a fee.