The first figure shows the amount of interest payment only.
The second figure gives the total monthly payment for a straight repayment mortgage, including both interest and payment towards the capital loan amount. This reduces the amount owed on the capital, month by month.
Anyone opting for an interest-only mortgage, such as linked to an endowment, ISA or pension savings policy, will need to add the cost of the monthly premiums of the policy to the interest figure above. On maturity the savings policy is intended to pay off the capital loan
These figures are only a guide. We recommend that you obtain exact figures before committing to any mortgage.
Banks and building societies used to lend three times a single salary or two and half times a joint salary on a property mortgage. With the average house price in the UK now over £130K, lenders have had to rethink their criteria. In addition to salary, they now consider deposit size and monthly financial commitments (excluding rent or mortgage payments) when making their decision. Our borrowing calculator can give you an idea of the amount could borrow under the new criteria.
