Residential Mortgage Hub

Residential mortgage advice covers a wider range of situations than most people expect. A first purchase, a remortgage at the end of a fixed rate, a self-employed application that a high-street affordability model will not accommodate, or a large loan underwritten individually rather than from a rate card — all of these are residential cases, and all of them are assessed differently.

This hub brings together our residential pages, the calculators that give you a figure before you commit, and the guides covering the questions we are asked most.

First-time buyers

Most lenders look for a deposit of at least 5% of the purchase price, though the widest choice of rates opens up between 10% and 25%. Borrowing is set by an income multiple, commonly four to five and a half times income, then tested against your committed outgoings, dependants and existing credit.

Two lenders can reach materially different answers on identical circumstances, which is the single strongest argument for comparing across the market rather than going straight to your own bank. Start with our first-time buyer and remortgage page.

Remortgaging and product transfers

If your fixed rate is ending you have three broad options: a product transfer with your existing lender, a full remortgage elsewhere, or a further advance if you are raising money. Which is cheapest depends on your current rate and any early repayment charge — mid-way through a competitive fix, a further advance often beats breaking the whole loan.

Our remortgaging guide covers the timing and the arithmetic.

Self-employed and complex income

Lenders generally want two to three years of accounts or SA302 tax calculations, though some will consider a single year. How income is assessed varies considerably: some use net profit, others salary plus dividends, and a few will use retained profit. That variation is precisely where lender selection changes what you can borrow.

The same applies to contractors, company directors, and anyone whose income arrives as a mix of salary, dividends and bonus.

Adverse credit

Missed payments, defaults, County Court Judgments and past bankruptcies do not automatically rule you out. What matters is how recent and how severe the issue is, whether it has been satisfied, and the size of your deposit. Specialist lenders price for this risk, so rates are higher than mainstream products — but the case is usually placeable.

Larger loans and high net worth

Above a certain size, mortgages stop being underwritten from a published rate card and start being assessed individually. Bonus, carried interest, share options, foreign-currency earnings and asset-backed lending all come into play. Our guide to high net worth mortgages and large loans explains how these cases are approached.

Raising money against your home

A secured loan or second charge mortgage sits behind your existing lender in priority. It can be the better route where you want to raise capital but your current rate is attractive, or where an early repayment charge would make a full remortgage expensive. Pricing is typically higher than a first charge because the lender ranks second.

Our guide compares second charge mortgages against remortgaging.

Work out the numbers

Mortgage repayment calculator — capital and interest, or interest only
Stamp duty calculator — including the additional property rates
All calculators

Remortgaging in the UK
High net worth mortgages and large loans
Second charge mortgages versus remortgaging
Stamp Duty Land Tax, Inheritance Tax and pensions and mortgage payments
The Renters’ Rights Bill — if you are letting rather than living in the property
Frequently asked questions — deposits, affordability, timescales and documents

If the property is an investment

Lending against a property you will let rather than live in is assessed on rental income rather than your earnings, and sits outside FCA regulation in most cases. That work is covered in our Buy-to-Let & Portfolio Landlord Hub. If the property is wholly or partly commercial, see the Commercial & Corporate Banking Hub, and for short-term or development lending the Bridging & Development Finance Hub.

Where we advise

Residential work is spread across all four offices. Rainham and Dagenham handle the bulk of first-time buyer and remortgage cases across the RM and IG postcodes, including a steady flow of self-employed applicants. Putney deals with higher-value and complex-income cases across south-west London. Willenhall covers residential lending across Walsall and Wolverhampton. See areas we cover for the postcodes each office serves.

Speak to an adviser

Tell us your circumstances — income, deposit, credit history and timescale — and we will tell you what is realistically achievable and which lenders are worth approaching. Call 020 8088 2211 or send an enquiry. All of our advisers are qualified and regulated to advise on the products they recommend.

Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857).
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Second charge mortgages and secured loans are secured against your home. Your property may be repossessed if you do not keep up repayments on any loan secured against it. Buy-to-let lending is not usually regulated by the Financial Conduct Authority. Nothing on this page is tax advice; consult a qualified accountant or tax adviser about your own position.