FAQ's

Unfortunately there is no set calculation for this, as each lender has a different approach to what you can borrow. The amount is determined by the cost of the property you wish to purchase, the amount of deposit you have, your income and your financial commitments. Most lenders have tools on their website that give you an idea of how much you can borrow based on your financial circumstances

For employed individuals, lenders will ask to see your last 3 months’ worth of payslips (last 14 if paid weekly) and occasionally may also ask for your P60

For those that are self-employed, you would be required to provide your last 2 years’ trading accounts or your SA302s which can be obtained from HMRC

Any other form of income such as benefits will need to be proven by award letters or statements from the provider

All applicants will also be required to provide 3 months’ worth of bank statements regardless of their income type

That will simply come down to what you can afford or your personal preference. Some people may want to pay off their mortgage as quickly as possible, for others it may be a case of wanting to take the mortgage out over the longest term possible to reduce your monthly payments. The absolute maximum term that any lender will allow is 40 years, but each lender has a maximum age that they allow at the end of the mortgage term, so the maximum term you will be able to take out will be determined by your current age and the lender’s criteria

Application Fee – Some mortgage products come with an application/product fee attached, typically this can be added to the loan or you can chose to pay it upfront to avoid paying interest on the fee over the length of your mortgage term

Valuation Fee – Lenders may charge you to value the property, the fee is usually paid upfront once you’ve made an application

Solicitors Fees – Partly paid up front when the solicitors are first instructed, but the remainder is paid upon completion, these fees are charged by the solicitor for the completion of conveyancing transactions on the property

Stamp Duty – For first time buyers, no stamp duty is payable on any property up to the value of £425,000

For non-first time buyers, the current stamp duty rates and stamp duty calculator are available on the government website gov.uk

Most commonly associated with fixed rate mortgages, but mortgages taken out with an initial deal (could also be a tracker or discounted rate) will usually come with early repayment charges attached to them. Simply put, if you decided to repay all or part of your mortgage before the end of the deal, you will be charged an early repayment fee, this is usually charged as a percentage of the loan. Some mortgages are ‘portable’, which allows you to transfer your existing mortgage balance to a new property when you move as a means of avoiding early repayment charges

You are only legally required to take out buildings insurance when you arrange a mortgage. However, you might also want to consider life insurance or critical illness cover to pay off your mortgage balance should you die during your mortgage term or be diagnosed with a major illness. Income protection is also an option for those that want to cover their monthly mortgage payments should they be unable to work an extended period of time due to accident or sickness