Mortgages (Residential Mortgages, Buy-to-let & Commercial Mortgages)

Puchasing Property using a Mortgage?

If you're contemplating the purchase of property, be it for personal residence, business expansion, or as an investment, it's essential to understand the different types of mortgages available. Mortgages are not one-size-fits-all; they come with their own sets of rules, benefits, and potential drawbacks. This comprehensive guide aims to shed light on the various mortgage types, their features, and how they might fit into your financial plans.

Exploring the Types of Mortgages Available

Residential Mortgages - What are they?

Residential mortgages facilitate the purchase of your personal dwelling, with terms and conditions designed around making homeownership accessible and sustainable.

Age Limits

  • Minimum Age: You generally need to be at least 18 years old to apply.
  • Maximum Age: This varies among lenders but is often up to 75 years at the end of the mortgage term.


  • Interest Rates: You can choose between fixed rates, where the interest rate stays the same for a set period, or variable rates, which can change.
  • Repayment Types: You can opt for capital and interest repayments, where you pay off the loan amount and the interest, or interest-only, where you only pay the interest and must settle the loan amount later.


  • Home Ownership: A residential mortgage allows you to become a homeowner and spread the cost over several years.
  • Tax Rules: Unlike some other types of loans, the interest you pay on a residential mortgage is not tax-deductible.

Commercial Mortgages - What are they?

A commercial mortgage is the stepping stone to owning business premises, whether for operational expansion or as an investment.

Age Limits

  • Minimum Age: Typically, you must be at least 18 years old.
  • Maximum Age: This often extends up to 75 years at the end of the mortgage term.


  • Loan-to-Value (LTV): Lenders usually offer up to 75% of the property's value.
  • Interest Rates: These can be either fixed or variable, similar to residential mortgages.


  • Business Growth: Acquiring a commercial property can be a significant step in expanding your business.
  • Tax Rules: The interest payments on a commercial mortgage are generally tax-deductible, reducing your business tax liability.

With mortgage interest rates and mortgage rates comparison tools available, identifying the most beneficial mortgage deal requires thorough research and often, the insight of mortgage brokers near you. Our professionals can navigate the mortgages in the UK, offering tailored advice and access to exclusive deals that might not be directly available.

Buy-to-Let Mortgages - What are they?

A Buy-to-Let mortgage is specifically designed for buying properties that you intend to rent out.

Age Limits

  • Minimum Age: Usually, you must be at least 18 or 21 years old, depending on the lender.
  • Maximum Age: This can vary but is often up to 75 years at the end of the mortgage term.


  • Interest Rates: These are generally higher compared to residential mortgages.
  • Loan-to-Value (LTV): Like commercial mortgages, this is usually up to 75%.


  • Rental Income: One of the main attractions is the potential for earning rental income.
  • Tax Rules: The interest costs on the mortgage can be offset against your rental income when calculating your tax liability.

Additional Considerations

  • Affordability Checks: Regardless of the mortgage type, lenders will assess your income, credit history, and other financial circumstances to determine your eligibility.
  • Fees: Be prepared for application fees, valuation fees, and possibly early repayment charges.
  • Regulations: It's important to note that residential and Buy-to-Let mortgages are regulated by the Financial Conduct Authority (FCA), providing an extra layer of consumer protection. Commercial mortgages, however, are not.

Mortgages for Special Circumstances

Mortgages for Over 60s and When Retired: Lenders are increasingly accommodating older borrowers, with products specifically designed for retirement planning.

Mortgages Shared Ownership: A way to gradually purchase your home, shared ownership schemes allow for buying a portion of the property while renting the remainder, easing the financial burden.

Preparing for Your Mortgage Application

Understanding your affordability, considering potential fees, and the importance of a favourable credit history are pivotal steps in securing a mortgage. Lenders will conduct thorough affordability checks, weighing your income against outgoings to ensure sustainable borrowing.

The Regulatory Landscape

The Financial Conduct Authority (FCA) regulates residential and Buy-to-Let mortgages, providing consumer protection and ensuring fair treatment. However, commercial mortgages fall outside this regulatory perimeter, necessitating careful consideration and advice.

Embarking on Your Mortgage Journey

Mortgages represent a significant financial commitment and choosing the right one can profoundly impact your financial health and well-being. If you’re contemplating navigating the mortgages market in the UK, especially concerning mortgages shared ownership, or if you're in specific life stages such as mortgages when retired or for over 60s, expert guidance can be invaluable.

Continuum Wealth - Trusted Mortgage Brokers Near You

Understanding your mortgage options and making well-informed choices is crucial. Whether you're looking to compare mortgage interest rates, seeking a mortgages rates comparison to secure the best deal, or need expert insights from mortgage brokers near you, our team is here to support you. Our team specialises in guiding you through the intricacies of mortgages in the UK, including tailored options like mortgages for over 60s, mortgages when retired, or mortgages with shared ownership. Reach out to us to discover how we can assist you in finding the mortgage solution that perfectly matches your financial goals, ensuring your property aspirations are achieved.

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Mortgages FAQs

Yes, mortgages for over 60s are available, though the choice may be more limited. Lenders will consider your retirement income and whether you can sustain mortgage repayments in retirement.

Yes, self-employed individuals can get mortgages, but you may need to provide more comprehensive proof of income, usually through SA302 forms or tax year overviews from HMRC, and potentially complete accounts for two or more years.

The right mortgage for you depends on your financial situation, how much risk you're willing to take, and your future plans. Fixed-rate mortgages offer stability, while variable-rate mortgages may offer lower initial rates. Interest-only mortgages have lower monthly payments but require a plan to repay the loan. Consulting with a mortgage broker can help tailor the best mortgage to your needs.

Mortgage brokers are intermediaries who help you find the best mortgage deal. They have access to a wide range of products, including some exclusive deals not available directly from lenders. Brokers assess your financial situation, offer advice, and can manage the mortgage application process.

The deposit size required can vary significantly; however, you'll typically need at least 5% to 20% of the property's purchase price. The larger your deposit, the better the mortgage rate you may be able to secure.

Mortgage interest rates fluctuate based on the Bank of England’s base rate, lender competition, and other economic factors. It’s crucial to research current rates or consult with mortgage brokers near you for the most up-to-date information.

A mortgage in principle is an indication from a lender stating how much they might lend you, based on preliminary information. It’s not a guarantee but can make you a more attractive buyer. It’s beneficial to have when you start house hunting, as it gives you and sellers

Mortgages for shared ownership allow you to buy a share of a property (between 25% and 75%) and pay rent on the remaining share. This scheme is designed to help people with lower incomes or deposits get onto the property ladder.

When comparing mortgage rates, look beyond the interest rate to consider the APRC (Annual Percentage Rate of Charge), fees, the term of the deal, repayment penalties, and any additional features like overpayment flexibility. This will give you a fuller picture of the cost and benefits of each mortgage.

In the UK, the main types of mortgages include fixed-rate, variable-rate (which includes trackers and discount mortgages), and interest-only mortgages. There are also specialised mortgages like buy-to-let for landlords and shared ownership mortgages for those looking to purchase a portion of a property.


Note: This page is for information purposes only and should not be considered as financial advice. Always consult an Independent Financial Adviser for personalised financial advice tailored to your individual circumstances.