For most people, buying property is the biggest purchase they ever make. Given the sheer amounts of money involved, you can’t have too much information.
Our Mortgages page explains the key elements that you need to know before you start looking for a home. It is also a useful reference for someone in the middle of the process, who just wants to check out a particular point, including:
- Mortgages explained: definition
- How much can I borrow? The crux of the matter. How the interaction between your savings and income impacts on your mortgage application. Includes an example to make things clearer.
- What do I need? What order you need to follow.
- Where does my income fit into the calculation? Why your income (and outgoings) are scrutinise by mortgage lenders.
- Mortgage types: explanation of fixed-rate, variable-rate and interest-only mortgages. You can’t decide which one is best for you if you don’t fully understand all the available options. There are positives and negatives to them all and there are different variables within each type, depending on your lender. Get the basics straight in your head here, then delve into the comparisons.
Mortgage Affordability Calculator
We have also included this handy tool from the Money Advice Service. It only takes a few minutes to input the necessary financial particulars, then the calculator works out approximately how much you can afford to borrow to buy a property. These are the numbers that mortgage lenders will be using to make the same calculations, so it gives you a realistic idea.
Initially you will need to put in your pre-tax annual salary, your monthly ‘take home’ income (after deductions), any other income and if there is more than one applicant. You also need a list of your monthly outgoings.
By using TRS Money you’ll get free uncomplicated mortgage information so you have all the details to make the best decision for your home buying situation. You can find out about other money related products such as credit cards, loans, and there’s a free money health check too.
