![]() If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement with regard to your personal circumstances, before making any decision about whether to acquire the product. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. It should not be relied upon for the purposes of entering into any legal or financial commitments. Because of this, you should consider the appropriateness of the advice to your own situation and needs before taking any action. This website has been prepared without taking into account your objectives, financial situation or needs. Getting a Mortgage 5 – 5.The information provided on this website is for general education purposes only and is not intended to constitute specialist or personal advice. £250k Mortgages: How Much You Need To Earn & Monthly Costs What To Do If You Can’t Afford A Mortgage You can also use our repayment calculator below to see what repayments will be using a different interest rate and term: ![]() Borrowing for longer means you’ll pay less each month but pay more overall. Most buyers choose to borrow over 25 years, but you can borrow over a shorter or longer term (up to 40 years). A longer fixed term usually has a higher interest rate than a shorter fixed term. Most people choose an initial fixed term rate, which is fixed for a certain period (usually 2, 3, or 5 years). However, that rate can increase, whereas fixed rates cannot (within a certain period), which is why these are more popular. Variable mortgages typically have a lower starting rate than fixed rate mortgages. You’re far more likely to find a mortgage rate under 2.00% if you have a clean credit history than if you have defaults, late payments, county court judgements, or bankruptcy on your credit report. You’re far more likely to find a mortgage rate under 2.00% if you have a 25% deposit than a 10% deposit. The following factors can all affect the mortgage rate you are able to get: ![]() For a £300,000 mortgage, this results in monthly payments of between £1,189 and £1,390. How much your monthly payments are exactly will depend not just on the loan amount but on: Your mortgage rateĪt the time of writing, typical rates available are between 1.42% and 2.79%. The monthly payments on a £300,000 mortgage will likely be between £1,200 and £1,400. How much will the repayments be on a £300,000 mortgage? a listed building or a thatched cottage) a broker who specialises in this property type will be able to help you. you get paid through commission or bonuses), a mortgage broker who works specifically in one of these fields can improve your chances of approval.Īlternatively, if you’re trying to buy a type of property that is in some way unusual (e.g. If you have a poor credit history or a non-standard income (e.g. In some cases, you could secure a much lower rate by adding just £1,000 to your deposit, which your broker can advise you on. Your broker can help you with important decisions, like whether you should choose a variable rate or a (usually slightly higher) fixed rate, or whether you should increase your mortgage term to repay less each month. They’ll be able to easily compare rates from every different lender so you can be sure you’re not overpaying. Your broker will know which lenders will only lend you four times your income and which will let you borrow five times your income or more, which helps you to maximise your borrowing. Here are some of the benefits: Market knowledge That’s why it’s smart to work with a broker who can help you to find the deal that’s right for you. How a broker can help you get the best mortgage dealĪs you can see, even slight differences between mortgages can have a huge impact on how much you repay on a £300,000 mortgage. In most cases, this drops to 85% for newly built flats (vs. For example, many lenders have a maximum LTV of 90% if you’re buying a newly built home and won’t consider offering a 5% deposit mortgage unless you’re applying through a scheme such as Help to Buy. The table below shows how much you would need as a deposit for a £300,000 property at different LTVs: Property valueĪdditionally, there are a range of factors that could affect the maximum LTV you can borrow at. ![]() Some lenders have a lower LTV of 85%, or in some cases 75%, meaning you’d need a bigger deposit. Most lenders have a maximum LTV of 90%, meaning you can borrow 90% of the property value and you’d need at least a 10% deposit to make up the rest, although 5% deposit mortgages are available under the right circumstances. The size of deposit you need is determined by the property value, the maximum loan-to-value (LTV) your mortgage lender offers and personal circumstances such as your credit history. You’ll need a deposit of at least £15,000 and likely more.
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