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Buying your first home

Unless you’re very lucky, as well as savings, you’ll need a loan to buy your first home, known as a mortgage. There’s lots of choice and some of the language used to describe them can be quite confusing. In this section we look more closely at mortgages to help you understand some of the terminology, how mortgages work, when to think about getting a mortgage, and how much you could borrow. It sounds obvious, but when you get a mortgage, you’ll also need to make sure you can afford the repayments each month.

What is Loan To Value (LTV)?

LTV is the relationship between the amount you’d like to borrow, the size of your deposit, and the value of the property you’d like to buy. For example:

If you've chosen a 95% mortgage for a house worth £200,000.

You need to put down a 5% deposit of £10,000.

And borrow the remaining £190,000 which you pay back each month.

So, a loan of £190,000 against a value of £200,000, gives you an LTV of 95%.

See how much you could borrow

Use our Mortgage Calculator to see how much we could lend you and to see how much your monthly mortgage payments could be.

Mortgage calulator

And remember

This is just an introduction and there are other options and considerations. Taking on a mortgage is a big commitment, so it’s essential you know what you’re letting yourself in for and can afford the monthly payments.

Click on the sections below to explore what you need to know at each stage of your home buying journey:

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Finding >

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Moving >

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