Residential mortgage
Mortgages for your own home, whatever your circumstances
A residential mortgage is a loan you take out to buy a property you plan to live in yourself, not to
rent out. It’s the most common option for first-time buyers, families moving home, or those
looking to improve their living conditions.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Key terms
- Deposit: from 5–10% of the property value (the higher the deposit, the better the terms).
- Income assessment: your main income, expenses, and credit history are taken into account.
- Property purpose: you must live in the property; it cannot be used as a rental.
Most common types of mortgage interest rates in the UK
- Fixed rate: interest rate stays the same for 2, 3, 5 years or more — ideal for those who want payment stability.
- Variable rate (base rate tracker): your interest rate moves with market changes.
Documents you will need
For employed:
- Passport, residency card, settled or pre-settled share code
- Council Tax bill or latest utility
- Last 3 month bank statement
- Last 3 month payslips
- Contract of employment
- Proof of deposit ( last 12 month bank statement)
- Completed questionnaire ( attached)
- Credit report
For self – employed:
- Passport, residency card, settled or pre-settled share code
- Council Tax bill or latest utility
- last 3 month bank statement
- SA302 & Tax Overview for 2023-2024, 2024-2025
- Proof of deposit ( last 12 month bank statement)
- Credit report