Your guide to
buying your home - How much can I borrow?
The first thing you should consider
is how much you could afford to pay for a property and therefore how
much you would need to borrow. Most lenders would expect you to provide
a deposit of at least 5% of the purchase price, although Right to Buy
purchasers are usually allowed to borrow the full amount. Even then
you may still need savings to pay for the survey and legal fees which
can sometimes to be as much as £500 or more.
It might be a good idea to approach
a lender before you do anything else about your intended purchase, to
find out how much they are likely to lend you based on your income.
Most banks and building societies
will lend between 2.5 and 3 times your annual income plus 1 times a
second income, although this may vary from lender to lender.
A good place to start might be
a bank or building society where you already have an account, although
it is always advisable to shop around and if necessary seek the advice
of an independent financial advisor.
Most mortgage interest rates
are variable and can increase or decrease at any time so you should
guard against over commitment as regards the size of loan you take out.
The willingness of the lender to offer mortgage facilities is no indication
of your ability to pay.
A
guide for first time buyers
Choosing
a mortgage
Interest
rates
The
survey
Completing
the purchase
Protecting
your interests
