Getting a Fair Deal On a Mortgage

1. How much can I afford to borrow?

  • What will I have to pay out each month?
  • If I take a mortgage with a low interest rate to start:
    • what will be the rate at the end of the fixed period?
    • what would my payments be now if I were paying that rate?
    • what would the payment be if the the interest rate were higher/lower than it is today?
  • What fees will I need to pay to get your mortgage?

If you choose a fixed rate remember the rates will usually go up at the end of the fixed period. Make sure you will be able to afford the repayments at the end of the fixed period even if interest rates rise. The lender may want to charge you extra if you want to switch to another fixed rate at the end of this one.

Most lenders will lend you an amount based on your salary (and partner’s). Don’t forget you will have to pay other costs involved in buying a home – the valuation fee and perhaps a structural survey fee, a fee for additional security arrangements if you want to borrow a high proportion of the property price, legal expenses, stamp duty, Land Registry fees and the costs of moving in.

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