Frequently Asked Questions

How much can you borrow?

How much you can borrow depends on how much you can afford. Lenders will check this but you can too.

Lenders should lend responsibly. This means that they should consider whether you can keep up the mortgage repayments now and throughout the term of the mortgage; for example after an initial discount period ends. They should base this on things like your income, expenditure and other circumstances.

Mortgage lenders have in the past offered to lend a sum based on a multiple of your salary (before tax) or your income if you were self-employed.

If you have other income such as bonuses, overtime, commission, pension income or tax credits lenders may take this into consideration.

It is more common now for lenders to make an affordability assessment when calculating how much they are prepared to lend you. Each lender will have its own method, but generally they will all try to calculate your disposable income, taking account of:

  • your total income

  • any monthly payments that you make for loans and credit cards

  • household bills and living expenses.


Top tips

  1. Work out your budget first.

  2. Be clear about the whole cost of the mortgage – including fees.

  3. Don't be tempted to lie on your application form to get a bigger loan – it's fraud.


How much can you afford?

How much you can afford may change over time. Find out how to protect yourself against changes in circumstances and what you can do if things change.

Four main things affect what your monthly mortgage repayment will be. These are:

  • how much you borrow

  • the term of your mortgage

  • the type of mortgage you have (interest-only or repayment), and

  • the interest-rate deal you choose.

All these factors can vary, so use our mortgage calculator to work out what your repayments might be. Simply enter the information it asks, and see what a particular mortgage will cost you each month.

Always check the Annual Percentage Rate of charge (APR) and use it to compare mortgages. You pay back more than just the interest on the amount you borrow – other things may also affect the overall cost of the mortgage, such as administration fees, survey fees and insurance charges. The time at which the credit and other charges have to be paid back affects the rate of the charges and the overall cost to you. You’ll see the APR quoted in Section 5 of the about this mortgage document (also known as a Keyfacts illustration or KFI).


You can afford it now, but what if...?

You may be able to afford the repayments now, but think about what could happen if your (or your partner’s) income fell or if interest rates increased.

Your income could fall if you or your partner:

  • lost your job(s)

  • had to take a drop in income

  • stopped work to have a child or look after a dependant, or

  • became ill and couldn’t work.

Your mortgage payments could go up if:

  • a special interest-rate deal ends – often special rates are for a set period only, so when this ends your payment will change to the lender’s standard variable rate

  • your lender increases the standard variable rate at their discretion. Even if the lender sets a limit that the standard variable rate cannot go over, its terms may allow them to increase this limit after they give you notice, or

  • interest rates increased – although setting interest rates is a commercial decision for firms, mortgage interest rates are related to the interest rate set by the Bank of England. It is at a historically low level, but don’t assume it will stay like this. A rise in the rate is likely to affect you, unless you have a fixed rate deal for the full mortgage term. If your interest rate deal is a standard variable rate, your lender may change the interest rate at their discretion.


Top tips

  1. Don't borrow the maximum on offer unless you’re sure you can afford it.

  2. Work out if you can still afford your mortgage if interest rates rise. Check
    using our mortgage calculator if you can afford your mortgage if rates go
    up by 1% or 2%.

Testimonials

Homesavers Mortgages and Loans in Bishop Auckland were recommended to me by a friend and from the moment I first contacted your mortgage company I found you to be helpful, straight forward and highly efficient. I also took mortgage advice from the in house mortgage advisor at the...

Dan, Bury (2010) (2013)

Hi Bill, Many thanks for that mortgage advice. I really appreciate the time and effort you put in to get this all put in place so quickly, the level of service was outstanding and certainly far exceeded my expectations! I will definitely be passing your details on to some c...

Puneet, London (2012) (2013)

Considering my personal financial circumstances and the fact that I literally walked in off the street I felt that I recieved a competent efficient service from Homesavers Mortgages and Loans in Bishop Auckland, with a warm welcome each time I called in. The mortgage offered t...

John and Louise, Co Durham (2010) (2015)

Thankyou! Finally we thought this day would never come, Thank you for everything you did for us, it would not of been as easy with out all your help. As first time buyers in Bishop Auckland Co Durham

Chris and Jen, Co Durham 2012 (2013)

Homesavers were reassuringly knowledgeable and friendly, made the process much less stressful. I would definitely recommend them.

Sara, Bedford 2013 (2013)

Thank you for all of your help, could not of understood any of this mortgage stuff without you...thanks for making it simple (mortgages for dummies by T Sharp 2013)

Davey and Fiona, Co Durham (2013)

We found Homesavers Mortgages and Loans in Bishop Auckland to be professional and efficient. The team members we spoke to were approachable and very helpful, despite quite a drawn out mortgage application (due to property issues) Trevor liaised with us and our estate agent to ex...

Vedran Biondic, Hertfordshire 2014 (2014)

Brilliant service once again from Homesavers in Bishop Auckland Co Durham, bearing in mind we have had Easter from application to offer it has been approx 1 week. Heather

Heather , Manchester 2014 (2014)

Very pleased with the service we received! Always got a text,email or call when I was in need of help and advice. Homesavers Mortgages and Loans in Bishop Auckland always make sure to contact us in a few years when our mortgage rate will increase. Leanne and Peter

Leanne and Peter, Murton 2014 (2017)

Fantastic service from start to finish, Trevor was always there to answer questions and there were numerous questions! Would highly recommend Homesavers Mortgages and Loans to friends.

Bryan and Annemarie, Newton Aycliffe 2014 (2014)

We found working with Trevor to be an absolute pleasure, He was always friendly, professional and competent. We have already recommended Homesavers Mortgages and Loans to others and will continue to do so. We were very please with the product Trevor found on our behalf and fel...

Anthony and Kate, East Sussex 2014 (2014)

Having used Homesavers Mortgages and Loans in the past, I had no doubts about doing so again, especially in very difficult personal circumstances. The services offered was highly professional, efficient and reassuring in a time of much financial uncertainty and turmoil. I wil...

Tracy, Spennymoor 2014 (2014)

An excellent service provided by Trevor who guided me through the mortgage process with ease and simplicity.

Christopher , Spennymoor 2014 (2014)

I was very impressed by the personal service that I received and the time the staff members were able to spend with me/talking to me. As a first time buyer of a property and a mortgage I was very grateful for the information I received and for the service that Homesavers Mortg...

Alex, London 2014 (2014)

We had an exceptionally good service from Homesavers Mortgages and Loans. We were very unsure about remortgaging as had never done this before however, were soon put at ease. Any questions we had (and there were quite a few) they were dealt with efficiently making the process...

Danielle, Co Durham 2015 (2015)

Hi Bill We just wanted to thank Homesavers Mortgages and Loans, very much for the efficient and friendly service you provided us while purchasing our new house which is, incidently, wonderful! Your knowledge of the market and assistance with organisation, and the resulting ...

Brett and Claire, Darlington 2015 (2015)

We would like to thank Bill again for all the support with our purchase! top notch service!...we will be recommending Homesavers Mortgages and Loans to everyone we know! Ali and Clare

Clare and Ali, Durham 2015 (2015)

Bill Just a little note to say a massive thank you for all of your hard work and patience! to get us our gorgeous new home! We would not trust anyone else with the job and we really appreciate all that you have done for us. Thank you very much.

Cassandra and Mark, Sunderland 2016 (2016)

I am delighted to say that the re-mortgage with Santander completed today, which I am thrilled about. Thank you so much for your quick and thorough work, it is very much appreciated and I will certainly be back to you for any future requirements, and I will recommend Homesavers M...

Elizabeth, Co Durham 2016 (2016)

Thanks again for arranging this Bill, as always very simple and a pleasure having you represent us.

Darren and Tracy, Kent 2016 (2016)

I Dealt with Trevor who couldn't have been more helpful, His help and advice was invaluable. I would certainly recommend Homesavers Mortgages and Loans to everyone I know!

Peter, Durham 2016 (2016)

I wanted to personally thank Trevor at Homesavers Mortgages and Loans for his help and guidance in this process. You have been absolutely brilliant and talked me through anything I didn't understand with patience, understanding and reassurance that I wasn't completely c...

Louise, West Midlands 2016 (2016)

Bill I just want to thank you for all you at Homesavers Mortgages and Loans have done for us, you have helped us get our very first home together THANK YOU

Cooke, Houghton Le Spring 2016 (2017)

Homesavers Mortgages and Loans came personally recommended and we are so pleased we used there services, Trevor provided us with an excellent service, his guidance and assistance proved invaluable during a tense time. We put our faith in Trevors experience and knowledge and he m...

Ian and Victoria, Wolsingham 2017 (2017)

Excellent service form Homesavers Mortgages and Loans in Bishop Auckland, I was recommended by my brother to see Bill, And I thought the service was second to none. I will remortgage with you in the future and possibly purchase a Buy to Let.

Warren, Bishop Auckland 2017 (2017)

We felt form the outset that Trevor form Homesavers Mortgages and Loans was looking out for our best interest and we trusted that he found us the best deal for our financial situation at this time. Having spoken with another broker a short time before we felt disheartened and ...

Chloe, Wolsingham 2017 (2017)

Thank you so much Bill at Homesavers Mortgages and Loans for helping us with our new home! Also sorry for all the constant texts, questions and phone calls!

Tom and Rebecca, Witton Le Wear 2017 (2017)

Fantastic service all round provided by Bill, giventime to understand the products before making an informed decision, very knowledgeabe and made the process to adjust our mortgage and life insurance policies extremely straitforward, I will certainly pass on Bill&#039...

Jon , Darlington 2017 (2017)

We just wanted to say a huge thank you to Bill at Homesavers Mortgages and Loans for being so helpful with my re-mortgage! I keep recommending you to friends, ( If that's ok!) I look forward to hearing from you again in about a year and ten months!

Rachael, London 2017 (2017)

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