Typically you can borrow three to three and a half times your income, or two and a half to three times joint income of you and your partner. These are known as income multiples.

The amount you can borrow will also depend on value of your home. Most lenders will allow you to borrow up to 95% of value of a property. The loan rate is set by lender, and is called standard variable rate (SVR).

Always shop around for best rates. However you must be careful to ensure you are comparing like with like. To do this check annual percentage rate (APR) of loan. You also need to bear in mind that interest payments in respect of fixed rate mortgages can rise steeply once initial 'fixed' period ends. Therefore your planning should always include possibility of sharp changes to future interest payments.

There are two basic species of mortgage, repayment and interest-only. The option you choose is determined by way you want to repay your loan. Depending on type of mortgage you choose, your monthly repayments will be made up of either capital and interest or interest only.

A mortgage is a loan you take out to buy property. You can get a mortgage direct from lender such as banks, building societies and specialist mortgage lenders.

Your mortgage is probably biggest loan you will ever take out, so it is important to get a mortgage that suits you. This will depend on your personal circumstances and your plans for future. Many mortgages have hidden drawbacks. Get independent advice before you choose a mortgage.

There are two basic types of mortgage, interest-only and repayment. The option you choose is determined by way you want to repay your loan. There is no hard and fast rule about which is better. It is a matter of individual preference.

Interest only

An interest-only mortgage allows you to repay just interest on your loan, but you have to take out an investment that will mature to pay off outstanding amount. If your investment performs well then you may have some money left over after paying back your mortgage. But there is also a risk that investment will under-perform leaving you to make up any shortfall.

Repayment

A repayment mortgage requires you to pay back both interest and loan capital, so at end of your mortgage period there is no money owing. Early on you pay mostly interest, so it might seem that outstanding balance never gets lower. But later on you will repay more capital, and total will decrease more quickly.

Here is a selection of different mortgages that are available:

Discount mortgages