At Diamond Property Finance, we understand that navigating the mortgage market can be a daunting experience. That’s why we’re here to help you at every stage of your property journey, whether you’re a first-time homebuyer or a seasoned property investor. Our team of experts are dedicated to providing you with tailored advice and support to help you achieve your goals with ease and confidence.

If you’re a first-time buyer, we can guide you through the process of getting onto the property ladder, from finding the right mortgage to securing your dream home. If you’re a homemover looking to climb the property ladder, we can help you explore your options and find the best mortgage deal to suit your needs.

For those looking to remortgage, we can assist you with capital raising and provide guidance on what mortgage could be the right choice for you. If you’re interested in expanding your property portfolio, we can help you secure additional borrowing and provide advice on secured 2nd charge lending.

At Diamond Property Finance, our mission is to make the mortgage process as simple and stress-free as possible, giving you the confidence to achieve your property goals.

What is the difference between a residential mortgage and a buy-to-let mortgage?

When making a property purchase, it’s important to understand the differences between mortgage types in line with the property’s intended use. Each serve a different purpose and have unique features tailored to specific types of property ownership.

A buy-to-let property mortgage is typically designed for landlords or investors looking to buy property in addition to their main residence to let out on a long-term basis. A great solution for clients looking to invest in property, a buy-to-let mortgage is suitable for client’s already owning property and wishing to rent it out, or those looking to purchase additional property for this purpose.

A residential mortgage is intended for people buying property to live in as their primary residence. It is the most common type of mortgage for homebuyers.

Typically, buy-to-let mortgage interest rates tend to be slightly higher than residential mortgage rates due to the lenders increased risk. The deposit for a buy to let property investment is often c.25% of the property value, but it can vary between 20-40% depending on the lender. Traditional mortgages allow for less deposit with some considering as low as 5%.

To see which mortgage type best suits your requirements, contact Diamond Property Finance today and let us help navigate your property finance journey.


What is a residential mortgage?

A residential mortgage is a loan used to purchase a property intended for personal use, typically a home where the borrower plans to reside. The borrowed funds cover the property’s purchase cost, and the property serves as collateral for the loan. This type of mortgage is distinct from commercial mortgages, which are used for business properties.

What is the difference between residential and commercial mortgages?

Residential mortgages are designed for personal use, financing homes where the borrower resides. In contrast, commercial mortgages fund business properties, such as offices or retail spaces. Residential mortgages often have lower risk compared to commercial mortgages, making them more accessible for individuals.

How do you qualify for a residential mortgage?

To qualify for a residential mortgage, you typically need:

1. Stable Income: Lenders assess your income to ensure you can meet repayments.

2. Good Credit Score: A higher credit score increases your chances of approval.

3. Down Payment: A percentage of the property’s value is usually required upfront.

4. Employment History: A steady job history demonstrates stability.

5. Debt-to-Income Ratio: Lenders evaluate your existing debts in relation to your income.

What are current residential mortgage rates?

The current residential mortgage rates in the UK vary depending on the type of mortgage and the deposit or equity percentage. As of February 2024, the average two-year fixed-rate mortgage rates range from 4.39% to 5.59% for different deposit or equity percentages, while the average five-year fixed-rate mortgage rates range from 4.11% to 5.25%. It’s important to note that these rates are subject to change and may vary between lenders. Borrowers are advised to consult with our experts at Diamond Property Finance to obtain the most current and personalised rate information.