If you’re buying property or land in Scotland or Wales, there are similar taxes that you might have to pay. You can use our stamp duty calculator to work out how much your stamp duty might be. Depending on its value, you might also have to pay Stamp Duty Land Tax, which is a government tax payable on property or land above a certain price threshold in England and Northern Ireland. Remember, when you’re working out what you can afford, there are other expenses you’ll need to consider, besides the cost of the mortgage itself.įor example, when you get a mortgage, the lender will require you to take out buildings insurance to cover the property. Ultimately, this is for your benefit, as the lender will want to supply you with the most appropriate product they can. So, when it comes to applying for a mortgage, you’ll have to go into a lot of detail about your income and spending. The current rules around mortgages were put in place to help make sure that customers only borrow what they can comfortably afford. Your home may be repossessed if you do not keep up repayments on a mortgage. Make sure you obtain accurate figures from your lender before committing to any mortgage. These will be considered for both of you if you’re making a joint application.īut you can start by getting a rough idea of how much you could borrow by using our mortgage calculator.Īctual loan amounts and affordability criteria will differ across lenders. It includes criteria such as your income, the size of your deposit, your regular expenditure, and your credit rating. How much might I be able to borrow with a mortgage?Įvery lender has different ways of calculating how much they will lend to you, or even whether they will lend to you at all. If you own the house you’re currently living in, that too will be an asset, even if you haven’t paid it off fully. If you’re a first-time buyer, your assets will be savings, investments and anything else you can turn into cash quickly. This will help you to stay well within your means and less likely to overstretch your finances. It may sound obvious but take the time to make a note of all the things you spend money on throughout the year, even without a mortgage. You don’t want to commit to a mortgage and then realise you can’t afford some of the nicer things in life. You will need to consider the assets you have – like savings, which you might be able to use for your deposit – as well as the money that’s coming in and going out. Buying a property is a big step involving a substantial long-term financial commitment, so think hard about what you can afford.
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