![]() Ask yourself:Īre there any standing orders or Direct Debits you have been paying for years that you could do without?Ĭan you cut down on your weekly shopping spend or any other outgoings ? Look at all your spending habits before you even start comparing mortgages. In the run up to applying for a mortgage, it’s therefore sensible to make sure you are budgeting properly. If you spend a large amount of your monthly income you may be seen as a riskier prospect by the lender. They will want proof of the income you have coming in regularly and will also look at your expenses to get an idea of how much of your income you are spending each month. ![]() Mortgage lenders will usually want to see up to six months of bank statements. You can get an idea of what you could afford by using our mortgage affordability calculator. Lenders generally take income, deposit and affordability into account The details we require include the property price, your deposit, whether you're looking to live in it or rent it out. Secure your mortgage with our broker partner Mojo Get mortgage deals recommended to you based on the information you provide Let us know your details so we can narrow down your options For this reason, looking at the total cost over the deal period can be a better way to find the cheapest option. It’s usually best to switch to a new deal at the end of the initial period to avoid paying your lender’s SVR. However, as it assumes you’ll have the mortgage for the whole term it’s not always a useful way to compare deals. This helps you to find out whether the deal with the lowest initial rate is really the cheapest overall. The APRC is a way of taking both these interest rates into account to show the cost over the whole term. Mortgages generally offer a lower interest rate for the first two to 10 years then revert to the lender’s - usually higher - standard variable rate (SVR). It takes the overall rate charged over the lifetime of the mortgage, including any fees, and gives you a baseline comparison rate. What is the APRC?ĪPRC stands for Annual Percentage Rate of Charge and is a way of comparing different mortgages. First-time buyers often pay higher interest rates than other borrowers as a result. First-time buyers tend to need to borrow a higher percentage of the property’s value than existing homeowners who have often built up equity in their property by the time they want to remortgage or move home. Typically, the higher the LTV, the higher the interest rate you’ll pay on your mortgage. All mortgage deals have a maximum LTV – the maximum percentage of the property’s value they can fund. The LTV, or loan to value, is the ratio between the value of your property and the amount you're borrowing. However, it will also take you longer to repay the mortgage, and you’ll pay more interest overall. The longer your term the more spread out your costs and the lower the monthly repayments. Mortgages are typically taken out for 25 years, but the term can be shorter or longer. However, being able to continue doing so depends on you keeping up with the repayments every month. This means that if you can’t repay the loan, the lender could, as a last resort, take back (repossess) and sell the property to get their money back.Ī mortgage allows you to use the property as soon as the purchase has been completed you don’t need to pay the property’s purchase price in full to start living there or renting it out to a tenant. It is paid back with interest, usually over a long period of time, and is secured on the property you’re buying. A mortgage is a loan from a bank, building society or other lender that you can use to buy property.
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