What size mortgage can I get?

Before mortgage lenders provide any offer they will take into account a few important things: your annual income, type of your job and how secure it is, whether you are going to borrow on your own or with someone else, your outstanding loans and savings, credit history, whether anyone will be your guarantor by agreeing to repay the mortgage if you aren't able to and the value of the property you are going to buy.

Most mortgage lenders will offer a mortgage with repayments (including your other loan repayments) that will not exceed 40% of your monthly take-home pay. Taking all this into account lenders may then offer a smaller mortgage amount or propose extension of repayments over a longer term.

100% Mortgages

The majority of lenders tend to offer a percentage of the property's value - usually up to a maximum of 92%. It means that you will have to pay at lease an 8% deposit if you decide to buy proceed. However it happens from time to time that lenders may offer 100% mortgages, however there is always a danger of suffering negative equity if house prices fall and where you find your mortgage is higher than the value of your home.

Typically lenders now expect you to be in a position to pay a deposit least 8% of the valur of the purchase price. It is woth noting that even if you get a 100% mortgage keep in mind you will also have to cover other expenses such as legal fees or stamp duty.

Depending on your situation you may have to choose a longer term for paying off your mortgage as well as all other expenses connected to buying your first home. However it's possible to shorten the term later on. Two options available are paying extra every month or paying lump sums anytime you can afford it. Generally you will need to be on a variable rate interest rate to do this free of charge. Extra expenses are connected when paying some or all of your mortgage before the agreed term if you have a fixed rate mortgage.