How much can I borrow

The mortgage lending market has changed in recent years, and new rules have altered the way that lenders review mortgage applications.

Affordability is now the lenders’ main focus, and they will often require details of your employment, income and monthly outgoings, along with other information to make their decision to grant a mortgage.

If you are a second time buyer, find out what you could borrow with the mortgage table above.

How to calculate mortgage repayments

The size of your monthly mortgage repayments could determine which mortgage you take out.

If you want to see how big your monthly mortgage payments could be, complete our mortgage calculator with the following information:

• 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

The mortgage calculator will display the best second time buyer mortgage options for you.

What is a fixed rate mortgage

If you want to guarantee your interest rate for an agreed period of time, then you might want to look at a fixed rate mortgage. You can find a fixed rate mortgage with the majority of high street banks, with fixed terms from 2,3,5 or 10 years.  

It may be an attractive prospect to lock up your interest rate for an agreed period of time. However, it is difficult to know what interest rates will look like in the near future. For example an attractive interest rate now may not look so good in a few years’ time.

If you are a second time buyer, then you might want to investigate all your options before committing to a long fixed rate mortgage.

What is a tracker rate mortgage

Tracker rate mortgages are mortgages that are closely linked to the Bank of England’s base interest rate. This means that tracker mortgages’ interest rates will increase if the Bank of England hikes their base rate interest.

Repayment or interest only

There are two main types of mortgages

Repayment mortgages: requires you to repay the capital and the interest at the same time. Repayment mortgages usually have higher monthly mortgage payments, but at the end of the term you will own the property.

Interest only mortgages: enables you to only pay the interest of the mortgage. These mortgages generally have cheaper monthly mortgage payments; however, with an interest only mortgage you do not get to own the property at the end of the term.

Making overpayments

Overpayments can help you pay your mortgage off quickly. However, some lenders do not allow you to make overpayments after a certain period in your mortgage. If you want to make an overpayment on your mortgage, you should check with your mortgage provider; making overpayments could result in you incurring early repayment charges.

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.