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How much can I borrow?
How much is stamp duty?
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Moving or buying a new home can be an exciting but also stressful experience, that’s why it’s important that you are in the right hands and speak to the experts that deal with this process daily.
We’ve included some information below to guide you on what to expect, or even better, pick up the phone and speak to one of our fee-free advisers to get started today on 01904 373 028 or submit an enquiry here.
How much can I borrow?
Broadly speaking the amount, you can borrow, depends on the amount of income and outgoings you have. You can influence your affordability by doing everything possible to reduce your monthly outgoings as well as considering how many years you take the mortgage over.
Whilst a longer term for your mortgage will reduce your monthly payments it may also mean that you pay more over the term of your mortgage. Other factors that influence the amount you can borrow are:
Commission, bonuses and other regular income such as overtime.
Employment situation i.e. self-employment.
Amount of deposit.
Current age and expected retirement age.
What if this amount isn't enough for me?
If this is the case that’s where our expertise comes in. There are a number of specialist options available that may lend you more than your average lender.
You can call our mortgage advisers today to find out more.
How much deposit do I need?
The general assumption, when it comes to putting down a deposit, is that you need a minimum of 10% of the purchase price of the property. However, dependent on several factors it is not uncommon to put down as little as 5% deposit, therefore raising a 95% mortgage on the property.
There are also specialist options available where borrowers can secure a property with no deposit through various schemes. If this is something that you are interested in, we would highly recommend you speak to one of our advisers, who are experts in these areas, on 01904 373 028.
It is generally best practice to put down as much deposit as you have available. A larger deposit will normally give you greater choice of lenders with better rates of interest.
Help to Buy: Equity Loan Scheme
With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
Example: for a home with a £200,000 purchase price.
If the home in the example above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money. For more information on the Help to Buy Equity Loan and how you can make this work for you, contact the experts at My Mortgage Finder today on 01904 373028.
To reflect the current property prices in London the Equity Loan gives an increased amount to new homebuyers within Greater London from 20% to 40%.
Contrary to popular belief, Equity loans are available to home-movers looking to move as well as first time buyers. The home you want to buy must be newly built with a price tag of up to £600,000. You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy: Equity Loan.
For more information on the Help to Buy: Equity Loan and how you can make this work for you, contact the experts at My Mortgage Finder today on 01904 373028.
Costs to be considered in your house purchase or house move.
Stamp Duty Land Tax
You may be subject to Stamp Duty Land Tax. You can use our interactive calculator to show what you can expect to pay.
It is important that this cost is factored in when deciding how much deposit you will need as the cost will need to be paid for in one go as it can’t be associated with a mortgage.
Mortgage product and arrangement fees are a common cost associated with selecting a specific mortgage product, these can be paid for upfront or added to the mortgage amount.
It is important to note if these fees are added to the mortgage this will result in paying a higher amount of interest over the term of the mortgage.
All lenders will require a valuation and many lenders now offer a free basic valuation as part of their service, you may wish to upgrade to a homebuyer’s report or a full structural survey.
Speak to one of our advisers who will explain the benefits and associated costs with doing so.
Buying or moving a home will always incur legal fees and picking the right conveyancer is a crucial part of the process.
My Mortgage Finder work alongside a number of high-quality conveyancers who provide an excellent service at a competitive price. You can find out more about our conveyancing panel by speaking to one of our advisers who will arrange a quote on your behalf.
Once you have moved.
Once you move into your new home it is important that you can afford to live comfortably so you need to consider some other costs:
Repairs and decorating