?630 for a 3 bed detached.

But it's not quite as simple as saying a 3 bed detached will cost ?630 per month. If someone wanted to buy the same house for the same price, it may cost them ?400 per month, it may cost them ?1000 per month.

The main factor is what your Loan to Value value ratio is (i.e. the amount of mortgage you need vs the market value of the house). The interest rate will be higher if your loan to value is 90% compared to say 70%.

As such, your mortgage cost really depends on what your deposit is.

It's also important the length of term of the mortgage. i.e. if you are paying it off over 25 years, it will cost you less per month than say 15 years (though naturally you'd have 10 years mortgage free). I'd personally recommend at the moment to pay off mortgages as soon as possible as the interest rate is on the floor right now (and as such you should be able to afford to pay off more now).

Another thing to factor in is that house prices over time are likely to go up, so a house thats ?150k now, may be worth ?200k in 10 years time... you shouldn't rely on this, but renting does mean that you def won't have that extra money in a few years time.

You can play with some figures at www.google.co.uk/mortgages

Posted By: MortgageGuru, Sep 11, 10:55:19