Work out your repayments
Assumes the same rate for the whole term. Most mortgages have a fixed or tracker rate for a few years, then change, so real payments will differ. Fees are not included.
How the numbers work
With a repayment mortgage, each payment covers the interest and part of the loan, so the debt is cleared by the end of the term. With interest only, you pay just the interest and still owe the full loan at the end, so you need a plan to repay it.
Loan to value
Loan to value (LTV) is the loan as a percentage of the price. A bigger deposit means a lower LTV, which usually gets a lower interest rate. Common steps are 95%, 90%, 85%, 75% and 60%.
Next steps
- Get a mortgage in principle.
- Work out your Stamp Duty.
- Add everything to your moving budget.
This is a guide, not financial advice. Speak to a mortgage adviser or lender before you decide. Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently asked questions
How much can I borrow?
Lenders look at your income, outgoings and credit history. Many lend around four to four and a half times income, but it varies. A mortgage in principle gives you a figure.
Is a longer term cheaper?
Monthly payments are lower, but you pay more interest in total.
Does this include fees?
No. Add arrangement, valuation and broker fees separately.
Useful pages
