Your home may be repossessed if you do not keep up repayments on your mortgage.
Plan the purchase around a realistic household budget
Buying a home begins with understanding what you can afford and what you want the mortgage to do. The deposit and monthly payment matter, but so do purchase costs, other commitments and future plans. A lender’s maximum borrowing figure is not necessarily the amount that feels comfortable for your household.
Ria Ali at PMS Mortgages helps first-time buyers and home movers in Croydon, Purley, London and across the UK review residential mortgage options. We explain the process, assess relevant lender requirements and help prepare the application. Advice is available from our Croydon office, by phone or by Zoom.
Deposit, fees and proof of funds
Separate the deposit from money needed for legal work, surveys, moving and any applicable purchase taxes. A product fee, valuation cost or other mortgage charge may also need to be included. The precise costs depend on the property, product and transaction, so avoid treating the asking price as the whole budget.
Explain where the deposit comes from, including savings, a gift or sale equity. The lender and solicitor may need evidence of the source. If you are selling a home, calculate the funds available after repaying its mortgage and relevant costs. An estimated sale price is not the same as money already available for completion.
Income and affordability evidence
The lender assesses income and household spending as well as credit history and deposit. Payslips may be suitable for employed applicants, while accounts and tax records can be relevant for self-employed borrowers and company directors. Bonuses, overtime, dividends and other variable income need to be identified separately.
Bring a clear list of loans, credit cards, childcare, maintenance and other regular commitments. Tell us about planned changes in work or spending before the application. We can review complex income cases and contracting arrangements, but approval always remains subject to lender assessment.
Agreement in Principle and the full application
An Agreement in Principle can give an initial indication of lending based on the information supplied. It can be useful during a property search, but it is not a mortgage offer or guarantee. The credit-check approach and validity can differ between lenders, so understand the requirements before applying.
Once a property and suitable product are identified, the full application provides the detailed evidence needed for underwriting. The lender also assesses the property and may request further information. A change in circumstances can affect the application, so keep us informed about employment, borrowing or deposit changes before completion.
Repayment methods, rates and mortgage term
A repayment mortgage is designed to reduce the capital through scheduled payments over the agreed term. Interest-only borrowing leaves capital outstanding and requires an acceptable repayment strategy. The method affects monthly payments and long-term obligations. Read our interest-only guidance before assuming a lower monthly payment means a lower risk.
Fixed and variable rate products have different payment and flexibility characteristics. Compare the interest rate, fees, repayment term, early repayment charges and overpayment conditions. Extending the term can lower the monthly payment while increasing total interest. We explain the relevant illustrations and recommend an option suited to your circumstances and plans.
Moving home and porting an existing deal
If you already own a home, bring the current mortgage statement and product conditions. You may want to compare redeeming the mortgage with porting the existing product. Porting requires the lender to assess the new property and your circumstances; it is not automatic approval for the next purchase.
Extra borrowing may be priced differently and can create more than one mortgage part. Early repayment charges or timing conditions may apply. Review the combined costs alongside other available options. The sale chain and completion dates also matter, especially when the deposit depends on the sale of your current property.
Property checks, completion and protection
Your solicitor checks the legal position, and an appropriate survey helps you understand condition. The lender’s valuation is for its own lending purposes and is not a comprehensive survey. Leasehold terms, service charges, construction and building-safety issues can all affect the purchase and should be raised early.
Before completion, understand the mortgage offer, payment obligations and required insurance arrangements. Review life assurance and income protection against your dependants, existing benefits and budget. We explain the mortgage recommendation and support the application, while your solicitor handles the legal completion process.
Frequently asked questions
Does a calculator tell me how much a lender will offer?
No. It illustrates repayments using the figures entered. A lender’s affordability and property assessment is separate.
Can I move my current mortgage to a new home?
Your product may be portable, but the lender must approve the new property and application. Additional borrowing and charges need to be assessed.
What should I bring to a consultation?
Bring income evidence, deposit details, household spending, borrowing information and the property particulars where available. Home movers should also bring their existing mortgage statement.
Discuss your plans with Ria Ali, Principal Mortgage & Protection Adviser. Book a consultation with PMS Mortgages for advice in Croydon, Purley, London and across the UK. Mortgage approval depends on your circumstances, the property and the lender’s assessment.