OK here is my 2 pence worth

I'm a finance journalist in the mortgage industry, so I hope I can help.

There are 2 types of mortgages

Capital Repayment

Interest Only

Capital Repayment - every payment you make goes towards the bricks and mortar, so you will own your home outright at the end of the term

Interest Only - every payment you make goes towards the interest on your mortgage, so you will only be paying the bank/BS for your mortgage, so will need to pay them back the full amount after the term ends. People who opt for interest only are usually landlords or professional investors

Then you need to work out how much mortgage you can get. Typically most lenders will lend you 3-4x your salary, so you will be able to get around £120,000. Unless you have a deposit you may find it hard to get a good deal, without sacrificing lots of money.

If you have a deposit - great! If you don't, then all is not lost. But beware of

- high arrangement fees - to get the mortgage deal
- redemption penalties - paying it back early
- standard variable rate - the rate it reverts to when the deal ends...

fixed rates - you know how much you will pay per month. You will fix it for anything from 2- 25 years

variable rates - your mortgage will fluctuate depending on the bank of england's monetary policy committee - which meets every month. So your payments can go up as well as down

capped rates - a guarantee that your payments will not go above or below the bank of england's base rate

it's a f**king jungle out there chap. If you need help finding a good deal I have access to the whole of the mortgage market, so just drop me an email and I will help you out

liam_tarry@hotmail.com

right, I'm off to me bed. x

Posted By: Stoopish on December 20th 2007 at 02:13:54

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