How much can I borrow

Lenders, such as high street banks, have altered the way they review mortgage applications because of new mortgage lending rules.

Lenders will now determine whether they are willing to provide a mortgage through assessing affordability. Therefore, you will likely have to provide the following to support your mortgage application:

• Your credit history
• Details of your employment
• Proof of your income
• Your monthly outgoings

If you are over 55 and need a mortgage, find out what you could borrow with the mortgage table above.

How to calculate mortgage repayments

To find out how much you will need to pay each month for your mortgage, complete the fields in our mortgage calculator.  

In the fields on the left of the calculator enter the following:

• The purpose of your mortgage
• The value of the property
• The amount you wish to borrow
• The type of mortgage you want (either capital and interest or interest only mortgage)
• The length of mortgage

Once you have entered the necessary information, the calculator will provide a breakdown of the best mortgages on the market.

What is a fixed rate mortgage

A fixed rate mortgage is a mortgage where the interest rate is set for the introductory term. Banks often offer fixed rate mortgages from 2,3,5 or 10 years.

The advantage of a fixed rate mortgage is that you know exactly how much you have to pay each month for the initial term.

It should be noted that interest rates may fluctuate throughout your fixed term; therefore, a good interest rate now may not be as good in the near future.

What is a tracker rate mortgage

A tracker mortgage is a mortgage with a variable interest rate. The interest rate will move in correlation with the Bank of England’s base rate. If the Bank of England decides to increase their base rate, then tracker mortgages’ interest rates will go up too.

Repayment or interest only

As the name suggests, interest only mortgages only require you to pay the interest on a mortgage. This means that the monthly repayments are lower than other mortgages, but you will not own the property at the end of the mortgage. These mortgages may be more suitable for buy to let properties.

Repayment mortgages are the opposite of interest only mortgages. Repayment mortgages require you to pay the capital and the interest on a mortgage. The monthly repayments are often higher than interest only mortgages, but you will own the property at the end of the mortgage.

Making overpayments

Overpaying your mortgage could be a quick way of getting a significant amount of your mortgage paid off. There are some lenders on the market that are willing to allow overpayments. However, a number of lenders prohibit overpayments and will even charge early repayment penalties. It is important to check with your mortgage provider before making an overpayment.

If you want to explore your mortgage options, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice.