Many first-time (and non-first-time) buyers wonder how much they can borrow and how much they can afford each month. If you’re reading this, you’re probably wondering – what does a £150 000 mortgage really cost every month? It can feel like the most stressful part of a move – that fear of the unknown.
The thing with this sort of question though is that almost all mortgage products are different, with different terms, interest rates and checks.
There are lots of online calculators (including the one on this page) and little charts on house-hunting sites that can tell you what they think you should be paying but when you’re putting your details into these it’s important to remember that these are based on a really average borrower, mortgage market, and lender, and that’s not necessarily the situation that you’re in!
Things that can impact monthly cost may include:
- Your deposit amount
- Whether it’s a fixed or variable rate mortgage
- LTV or Loan-To-Value (read our guide on this here)
- Your mortgage length (term)
- The lender’s interest rate
- The actual lender you choose
- Your own profile and which lenders you’re able to use with that profile
Important questions to ask yourself before you put in an offer…
- What can I afford when I balance income vs. outgoing costs?
- Will the mortgage lender agree with my own affordability assessment?
- Will my monthly mortgage budget work for the repayments on the amount I borrow?
If the answer to any of these is “I don’t know” then speaking to a mortgage advisor might be a really good first step for you, and it’s not as stressful as you may think.
With the right advice and the perfect lender, you could have your £150 000 mortgage-in-principle in no time, ready to start looking (or putting offers in) for your dream home.
Now for our actually really helpful plug…
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