Working out what you can afford

Don’t stretch yourself – make sure you can afford to pay your mortgage. We’ll be able to help you in determining what you can and can’t afford based on your income. Lenders will need proof that you can afford to keep up repayments. There are other outgoings that will affect you as a homeowner which should also be kept in mind; such as utility bills, council tax and insurance – to name just a few!

How you can pay your mortgage back

The money you have borrowed is called ‘capital’ and the lender charges you interest on this sum until it is repaid in full. The type of mortgage you are able to apply for will depend on whether or not you wish to repay interest only or interest and capital.

Applying for a mortgage

You will be asked a range of questions about the type of mortgage you want, if it is appropriate for you and how long your mortgage should last. Depending on your answers, the lender or mortgage broker will be able to recommend a mortgage that meets your needs and circumstances.

Your deposit

Buying a property requires a deposit to be put down. This figure will go towards the cost of the home you’re buying, so the bigger the deposit put forward – the lower the interest rate will end up being. For example, with a £20,000 deposit on a £200,000 property, the deposit rate is 10% of the price of the property, and the LTV is the remaining 90%. The mortgage is secured against this 90% portion. Lenders like a lower LTV because the lender takes less of a risk with the loan.

If you’re interested in our mortgage advice services, then get in touch with our team of experts who will be happy to help with any questions you might have about this service.