If you are purchasing a mortgage for the first time there are options to examine. Do you wish to buy alone or share your mortgage not necessarily with a partner? It could be an investment for a trusted friend or family member.

What percentage of the property value do you require to borrow? Do you have savings to invest or do you require a 100% mortgage or even a 125% mortgage.

How much can you afford? There are many factors to consider; mortgages available to you will essentially depend on your budget.

1. Mortgage Calculations
2. What mortgage size can you afford?
3. Mortgage and Moving House; costs involved
4. Other home purchase costs involved
5. Special mortgage fee offers

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We recommend that you take financial advice before making decisions or changes regarding your finances. The information on this website is for information purposes only, it is not intended as advice.

We offer free independent financial advice from an impartial qualified financial adviser.

Contact our qualified online financial advisor with your mortgage enquiry.
Free independent financial advice about mortgages

Mortgage Calculations

The single borrower

The maximum amount available from a lender for a single borrower is typically worked out like this.

3.25 x Gross income of a single borrower

Joint borrowers

The maximum amount available from a lender for joint borrowers is typically worked out like this.

(3.25 x Gross income of first borrower) Plus (1 x Gross income of second borrower)

Or

2.5 x Joint income of both borrowers

Use our calculator. How much can I typically borrow?

What mortgage size can you afford?

What is highest price house you can afford?

This is the typical answer.

Maximum amount available from a lender plus the Cash available for deposit.

The loan amount borrowed can be expressed as a percentage of the purchase price; this called the loan to value or the LTV.

Mortgage and Moving House; costs involved

Deposit or no deposit

If you do not have a deposit then you may need to consider a 100% mortgage. You will need extra money to cover legal costs and estate agent fees etc.

If you are struggling to raise the funds required to purchase a property or just want some impartial advice then you can:

Contact our qualified online financial advisor with your mortgage enquiry.
Free independent financial advice about mortgages

Stamp duty in relation to purchase price

Stamp Duty is charged at 1% of the purchase price for properties between £100,000 – £250,000

Stamp Duty is charged at 3% of the purchase price for properties between £250,000 – £500,000

Stamp Duty is charged at 4% of the purchase price for properties costing more than £500,000

There will also be solicitor’s fees on top of these charges

Calculate your stamp duty

Purchasing a mortgage and moving home carries additional costs to take into account.

1. Lender’s valuation fee
2. Survey costs
3. Buildings and contents insurance
4. Estate agent fee typically 2%
5. Removals

Special mortgage fee offers

Lenders may offer special carrots to attract first time buyers away from their competitors; these can include paying for your valuation and / or legal fee, or waiving their arrangement fee.

What to look out for

1. Is there an application fee for the special deal?
2. Will you be charged an arrangement / completion fee on finalising the loan agreement?
3. Are there any mortgage indemnity guarantee charges (MIG)
4. What refunds or cash-back lump sums are available?
5. Does the lender keep fees to a minimum compared to other lenders?
6. Don’t forget to budget for additional valuation and survey fees

See also:100% Mortgages   |  Share your mortgage