Update the purchase price and adjust the deposit to see how much the mortgage will cost you.
See how your repayments will change as interest rates alter over time - don't stretch yourself so far that you risk losing your home.
Monthly repayments £
On a property purchase price of £ with a £ deposit.
We highly recommend using an independent mortgage broker to make sure you understand all your borrowing options and get the best value mortgage product you can.
What can I borrow?
Whilst your bank may well offer you a mortgage, they may not offer you as much as another lender or at as competitive a rate as you could obtain elsewhere.
Typically, most lenders will offer around 4.5 times your income - what counts as income to each lender though is different.
Some lenders will accept bonuses and overtime, whilst others won't. Some require you to have been in a job for a certain amount of time or be out of your probationary period, others don't.
A good mortgage broker will know straight away which lenders are most likely to lend you the money.
Not all mortgage brokers are equal - a good one will ensure your 'decision in principle' (also known as an 'agreement in principle') is realistic and likely to be obtainable (given your personal circumstances).
An unrealistic decision in principle provided by an automated online mortgage broker may mean you can't borrow the amount you need. Don't risk losing your new home due to assuming that an automated mortgage decision in principle is accurate - make sure you either contact a lender directly or go through a real mortgage broker that you can speak to.
What's the advantage of using a mortgage broker?
Most people aren't eligible for the cheapest rate a bank offers, a mortgage broker will be able to give you a more accurate repayment cost than an online mortgage comparison website.
In addition to this, a good mortgage broker will be able to do the following:
They can search lots of lenders quickly
They know which mortgage lenders will lend to people who have a bad credit history
They know how much a lender will offer (based on base salary, overtime, as well as bonuses)
They know which lenders will respond best to variable/unstable incomes
For people with multiple jobs, which lenders will take account of both incomes
For company directors, they know the best way to present your 'earnings' to the lender (whether to use dividends and your personal tax return or your company accounts)
For contractors, which lenders will consider a day rate and what other criteria they have (e.g. the minimum length of contract remaining)
Some mortgage brokers are free but many charge up to about £500, however, they will usually be able to save you far more than this
For most people, going to each lender to find out this level of detail is not only prohibitively complictated and time consuming but actually impossible as you simply won't be able to get access to the same mortgage products that the broker is able to access.
Many lenders do not want to deal directly with the public and much prefer to sell their mortgages through an independent mortgage broker.
Yes, I want a free 30 minute call to find out what my mortgage options are and what I can borrow.
Be aware that many of the online 'decision in principles' that are available (without speaking to real mortgage broker) are not realistic and often won't lead to a successful mortgage offer.
Want to know more about mortgages?
Make sure you understand the mortgage terminology so you know you can borrow the money you need.