The top five questions about buying a property – now answered by experts

There are lots of queries people have when considering buying a home and here they are whittled down to the top five on Google and answered by mortgage experts

By Jacqueline Wake Young

October 12 2023, 5:00 pm

Working out your mortgage affordability should be calculated early on.

Everyone has questions when it comes to buying a home, with some queries popping up more than others.

According to recent research, “How much can I borrow?” is the most Googled question when people are looking to buy a house.

Mortgage brokers at L&C Mortgages analysed search volume for various terms and queries about buying a home and then had their experts provide some answers.

Buying a home brings up lots of questions – thankfully there are also lots of answers. Image: Shutterstock.

Here are the top five questions, all answered by an expert.

1. ‘How much can I borrow?’ – 153,000 monthly global searches

Your mortgage affordability is a term used when lenders assess whether you will be able to afford monthly repayments.

They assess multiple factors, such as age, income, and monthly outgoings to determine if you can pay at both the current and potential future rates.

They will also look to see if there are any likely changes to circumstances that could affect your ability to pay.

Monthly outgoings is one of the factors lenders look at. Image: Shutterstock.

2. ‘How much is my house worth?’ – 102,550 monthly global searches

If you are interested in selling or want to find out how much your property is worth before you remortgage, a valuation is the most accurate way to determine this.

The best way is through an estate agent or registered surveyor.

Online valuation tools can provide a general estimation but lenders will want an accurate valuation.

Whether selling up or just out of curiosity, people like to know what their property is worth. Image: Shutterstock.

3. ‘When will interest rates change?’ – 58,200 monthly global searches

To tackle recent high inflation figures, the Bank of England has increased interest rates over the past year.

The most recent change was in August, when the base rate increased from 5% to 5.25%.

There is no way to know when interest rates will fall. It is forecast rates could increase by a further 0.25% or 0.50%, potentially peaking at 5.75% and then falling over the next five years as inflation eases.

No one can say what will happen with interest rates for sure, but there are forecasts. Image: Shutterstock.

4. ‘How much deposit do I need?’ – 26,350 monthly global searches

Your deposit should be at least 5% of the property value. More significant deposits at 10% or 15% allow for better and lower mortgage rates.

Lenders’ best rates are reserved for those who can put even higher deposits, at 25% or 40%.

While 100% mortgages are available, following the 2008 financial crash lenders have become extremely cautious when offering these.

If you are successful with a 100% mortgage, lenders will usually require some cash or equity from your family members as security.

Higher deposits can make for a better mortgage rate. Image: Shutterstock.

5. ‘How can I get a mortgage?’ – 26,150 monthly global searches

The first step is determining how much you can afford to spend on your monthly repayments.

You will also need to check your credit history and lenders will use a credit reference agency such as Experian or Equifax.

You can improve your score by paying any credit on time, setting up direct debits and closing any credit card accounts no longer in use. Not being on the electoral roll can damage your rating.

Paying attention to your credit report can be key to securing your new home. Image: Shutterstock.

A DIP, ‘decision in principle’ or ‘mortgage in principle’ shows sellers you are serious about purchasing and will give you a clearer idea of how much you can borrow.

Getting professional advice from a mortgage broker can be invaluable.

A good broker will search across the market, checking lender criteria to ensure you get the best deal that suits your circumstances.