The two main things you need to factor in when looking for a mortgage are how much it costs, and whether you and your property are eligible.
You’ll need to look at the loan to value you require (the size of the mortgage you need as a percentage of the property’s value), whether it’s for first time buyers, existing owners for a new home, or a remortgage, then check out the fees involved, the monthly cost in the initial period, and the cost thereafter.
There’s quite a lot involved so a qualified adviser can do a lot the hard work for you.
The amount you can borrow will be influenced by the size of your deposit, your income, and your outgoings. Typically, most lenders will allow something in the region of four times your and your partner’s salary less your outgoings.
Rates tend to get better the more deposit you have, as it reduces the risk for the lender. As a first time buyer you now tend to need 15% if you want to buy all of the property. but if you have 5% you can use government schemes to buy a share in the property.
You’ll need to spend some time figuring this out. Start with your monthly income after tax, then figure out what you spend on bills, what you need for leisure, how much you want to save, and then look at what you have left.
There are usually fees involved, which will be made clear to you when you get a quote.
A mortgage adviser can take your details and find which mortgages you are eligible for before actually getting a quote. This can save a lot of time and help protect your credit rating.
We include an example of life insurance companies who you can get a quote from via a Financial Conduct Authority (FCA) regulated broker who we may introduce you to if you request a quote. We keep the information on this page up to date, but you will get a tailored quote from the broker we introduce you to.
If you choose to take out a policy, we may be paid a commission by the broker.