![]() ![]() It's much easier to get a mortgage on a 25% share of a £400,000 property in London than on the full price. Help to Buy Shared Ownership lets you buy a share of a property and pay rent on the remainder. When you sell the property, you pay the government back. You pay no interest for the first five years. With Help to Buy Equity Loan, the government lends you up to 40% of the property price (20% outside of London), as long as you put down a deposit of 5%. In the UK, especially in the south east, house prices are so high that most people don't have a high enough income to secure a mortgage.Įven if you can afford the monthly mortgage repayments, most lenders only will give you a maximum mortgage of five times your salary - which is problematic when house prices in the south east can be up to 15 or 20 times the average salary. Our Help to Buy mortgage calculator helps you work out whether an equity loan from the government can help you get onto the property ladder. Mortgage repayment calculator Help to Buy calculator Lenders won't give you an interest only mortgage unless you can prove that you can repay the whole loan at the end of the term. Then, at the end of the mortgage term, you still need to repay the full mortgage amount. Interest only mortgages have much smaller monthly repayments because you only pay the interest. By the end of the mortgage term, you will have paid off the entire debt and own your home outright. This means that, every month, you repay some of the original mortgage debt. Most mortgages, particularly if you're buying your first home or moving house, are repayment mortgages. Our mortgage repayment calculator can help you quickly estimate the monthly cost of your mortgage. You will have to make monthly mortgage repayments for the entire length of your mortgage - usually 25 to 35 years. Your monthly mortgage repayments are based on four things: the size of your mortgage loan, the length of the mortgage, the mortgage rate, and whether it's a repayment or interest only mortgage. Mortgage calculator: How much can I borrow in the UK? Calculate your monthly repayments And that's before you spend any money renovating the new place or buying furniture! Stamp duty, mortgage fees, conveyancy (legal) fees and surveys are likely to cost thousands of pounds. If you're self employed, have bad credit, or you're looking to release equity from your home, then you should talk to a mortgage adviser to discuss your options.ĭon't forget that the total cost of buying a house is much more than just saving up a deposit and getting a mortgage. To get an exact figure, you'll need to talk to a broker or lender and get an agreement in principle. Use an online mortgage calculator to quickly work out how much you can borrow. These mortgages have higher interest rates, and you will not generally be accepted unless you already have a mortgage with the lender or you have a guarantor. If you don't have a deposit of at least 5%, you will need to look at 100% LTV mortgages or guarantor mortgages. If you have a bad credit score, or you have very high monthly outgoings, then lenders might give you a higher interest rate or refuse to give you a mortgage. This varies from lender to lender, and it will also depend on the size of your deposit and the market value of your property. The maximum most lenders will offer is five times the total income of the people applying for a mortgage. In the eyes of the mortgage lender, mortgage affordability is mainly down to two factors: the total income of the people applying for the mortgage, and your overall financial health. If you're remortgaging, buying your first home, or investing in a buy to let property, you need to work out how much a mortgage lender may be willing to give you. ![]() Calculating how much you can borrow is the first step to getting a mortgage in the UK.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |