mortgages Devon
Home About Us Services Corporate Services Online Services Resources Our Clients Contact Us  
Pensions Investments Mortgages Life Assurance General Insurance Long Term Care Healthcare Wills & Estate Planning
Mortgage types FAQs Glossary Mortgage Calculators Endowment Mortgage Valuation      
mortgages Devon

How much could my mortgage cost?

How much can I afford to borrow?

What interest rate am I paying?


How much could my mortgage cost?

This will depend on a number of key factors. For example:
 
  • The Interest Rate
        The higher the interest rate, generally the higher your payment will be for a mortgage of the same amount and term, but lower interest rate.
     
  • Loan Amount
        The higher the loan amount, the higher your monthly costs will be (subject to your specific loan arrangement).
     
  • Payment Term in years
        The shorter the term, generally the more you will pay per month for a 'repayment' mortgage with the same payment interest rate and the same loan amount. However, the term does not affect the monthly amount your mortgage will cost you if it is an 'interest only' mortgage with the same loan amount and interest rate.
     
  • The Type of Mortgage
        An 'Interest Only' mortgage is where you repay the loan amount separately, for example, by an Investment Vehicle such as an ISA, Endowment, PEP or Pension. Provided the interest rate is constant, the monthly amount will remain constant, regardless of the length of the loan.

    A 'Repayment' mortgage is a mortgage where you pay off part of the capital each month as part of your regular payment. The balance of the monthly payment is interest. The amount of capital you pay off per month generally increases towards the end of your mortgage term.  For example:
      Mortgages Newton Abbot
       For Illustration purposes only.

       In general, the shorter the period of the loan, the higher the monthly payment will be.
    back



    How much can I afford to borrow?

    This will depend on a number of key factors. For example:

     
  • Income
        Most mortgages lenders allow a multiple of income as the maximum amount of loan. For example:

    3.5 x single income
    3.5 + 1 x joint income

    Borrowing to these levels may not be affordable.
     
  • My Financial Commitments
        A Mortgage lender will ask you about your financial commitments and take these into account to assess your maximum loan amount. For example: personal / car loans, maintenance payments.
     
  • Credit History
        A Mortgage lender will ask you about your credit history. If you have a bad credit history you may be offered a mortgage at a higher rate than advertised or could be declined.
     
  • The Interest Rate
        The higher the interest rate, generally the higher your payment will be for a mortgage of the same amount and term, but lower interest rate.
     
  • The Loan Amount
        The higher the loan amount, the higher your monthly costs will be (subject to your specific loan arrangement).
     
  • The Payment Term in years
        The shorter the term, generally the more you will pay per month for a 'repayment' mortgage with the same payment interest rate and the same loan amount. However, the term does not affect the monthly amount your mortgage will cost you if it is an 'interest only' mortgage with the same loan amount and interest rate.
     
  • An 'Interest Only' Mortgage
        Is where you repay the loan amount separately, for example, by an Investment Vehicle such as an ISA, Endowment, PEP or Pension. Provided the interest rate is constant, the monthly amount will remain constant, regardless of the length of the loan.
     
  • A 'Repayment' Mortgage
        Is a mortgage where you pay off part of the capital each month as part of your regular payment. The balance of the monthly payment is interest. The amount of capital you pay off per month generally increases towards the end of your mortgage term.  For example:
      mortgages Devon
       For Illustration purposes only.

       In general, the shorter the period of the loan, the higher the monthly payment will be.
    back



    What interest rate am I paying?

    The interest rate you pay is dependent on your individual circumstances and the mortgage products you may have access to. Lenders will take into account different factors in deciding what interest rate to allow you to borrow at including:

     
  • Loan to Value
        Having a bigger deposit reduces the loan to value ratio and gains you access to better mortgage deals.
     
  • Lender Criteria
        If you have adverse credit, you may be considered high(er) risk by the lender, and they may charge a premium for this in the form of a higher interest rate.
     
  • Size of Loan
        If you are borrowing a larger amount, you may gain access to special rates.
     
  • Macro Economic Factors
        The two main factors which determine borrowing costs are the bank of England base rate and the risk premium the bank applies. The bank of England base rate can vary, and if you have a tracker mortgage your mortgage repayments will also vary. Opting for a fixed rate mortgage is one way to protect yourself from these movements.
     
  • Special Deals
        From time to time, special deals are available for certain classes of buyer. We are updated daily from many of the top lenders, so feel free to enquire.
     
  • Fees
        Although not strictly related to the interest rate, Fees can have a dramatic effect on the overall cost of your mortgage. In many cases, the fees disproportionately higher for headline grabbing low rate deals, making them unfavourable.
     
  • Other Mortgage Factors
        Interest only Vs Repayment:

    An 'Interest Only' mortgage is where you repay the loan amount separately, for example, by an Investment Vehicle such as an ISA, Endowment, PEP or Pension. Provided the interest rate is constant, the monthly amount will remain constant, regardless of the length of the loan.

    A 'Repayment' mortgage is a mortgage where you pay off part of the capital each month as part of your regular payment. The balance of the monthly payment is interest. The amount of capital you pay off per month generally increases towards the end of your mortgage term. For example:
      Payment Term in years
        The shorter the term, generally the more you will pay per month for a 'repayment' mortgage with the same payment interest rate and the same loan amount. However, the term does not affect the monthly amount your mortgage will cost you if it is an 'interest only' mortgage with the same loan amount and interest rate.

    If you have not found the information you are looking for, further information on residential mortgages and insurance can be found at www.hedgelandsmortgages.co.uk.

    back
    Your home may be repossessed if you do not keep up repayments on your mortgage.
    For mortgage advice we can charge a fee of typically £500 or we can receive commission from the lender.




    Hedgelands Financial Services, Hedgelands, Abbotskerswell, Newton Abbot, TQ12 5PW
    Registered in England No. 4694508.  Registered Office 32 Monk Street, Abergavenny, Monmouthshire, NP7 5NW
    Hedgelands Financial Services Ltd is authorised and regulated by the Financial Conduct Authority, FCA Registration Number 624282. Sitemap
    Hedgelands Financial Services
    Hedgelands
    Abbotskerswell
    Newton Abbot
    Devon   TQ12 5PW

    map

    Telephone:

    01626 360654

    General Insurance:

    01626 438184

    Independent Financial Adviser
    mortgages Devon
    mortgages Devon mortgages Devon