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When you do feel ready to take on the responsibility of buying your own home, you need to choose your mortgage carefully and shop around for the best deal to suit your needs. There are dozens of different banks, building societies and other finance companies willing to lend mortgages and hundreds of different types of home loans on offer. So, before you even start looking for a property, it’s a good idea to find out as much as you can about mortgages and to consult different lenders about the amount you could borrow and the deals they offer. Most lenders will be prepared to lend you up to around three times your annual earnings, depending on your financial commitments. If you want to take out a joint mortgage with your partner or someone else, you can usually borrow three times the highest earner’s income plus once the other income, or up to two and a half times the joint income. Your main mortgage options:
An important decision is whether to choose a repayment mortgage or an interest-only mortgage linked to a suitable investment.
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