130000 mortgage (Deposit, monthly repayments, eligibility etc)

What are the repayments on a 130000 mortgage?

An example of what you could pay on a 130000 mortgage could be: £130000 over 25 Years at a rate of 5.5 % will incur a monthly repayment of £798.31 and a total repayable of £239493.00.

How much deposit do I need for a 130000 mortgage?

A 130000 mortgage will mean you have at least between 5% – 20% for a mortgage deposit.

This means if you want a 130000 mortgage you already have between £6,500 and £26,000 for your mortgage deposit.

This will be the first basis of your affordability of a 130000 mortgage.

You can improve your mortgage affordability by using one of the governments first-time buyer schemes.

This will mean you can put down a smaller mortgage deposit or be eligible for a reduction in the property price.

Some of the mortgages you could get with a 130000 mortgage include:

Fixed-rate 130000 mortgages:

With these mortgages, the rates are fixed for a period of 2, 3 or 5 years and provides you certainty over your mortgage term.

Variable rate 130000 mortgages:

You can access a host of variable mortgages through a mortgage lender and these mortgages will have a variable rate which can be increased or decreased at any time by the mortgage lender.

Tracker 130000 mortgages:

You can access a host of tracker mortgages from most mortgage lenders. These mortgages will usually track the bank of England’s rate and will move in line with it although it may not be the exact rate but rather a rate which will increase by the same point or increase by the same point as the bank of England rate.

130000 Remortgages:

You can access a host of remortgage options for a 130000 remortgage.

130000 buy to let mortgages:

Some buy to let mortgage lenders have a minimum amount they will lend but you may be able to get a 130000 buy to let mortgage with some specialist buy to let mortgage lenders. A buy to let mortgage broker will be able to assist you in this regard.

You may be eligible for some first time home buyer government schemes which may reduce the total cost of the property or increase your mortgage deposit.

• Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
• Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
• Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
• Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
• Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
• Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
• Right to buy- allows you to buy your home at a discount price.
• Preserved right to buy– same as above.
• Right to acquire- same as above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

The second basis of affordability for a 130000 mortgage will be your salary.

Most mortgage lenders use your annual salary x a multiple to see how much they could lend to you.

If you want a 130000 mortgage you will need your salary when multiplied by a multiple of 3 to be at least 130000.

Most lenders will use multiples of between 3 and 5.

What do the repayments on a 130000 mortgage look like?

Mortgage repayments on a 130000 mortgage will differ based on lenders and it wouldn’t be wise to simply provide details that can change at any moment here.

To see if you are eligible for a 130000 mortgage, speak to a mortgage broker.

How much would a 130000 mortgage cost per month?

£130000 over 25 Years at a rate of 5.5 % will cost £798.31 per month.

What’s the monthly payment on a 130000 mortgage?

The monthly payment on a 130000 mortgage will vary based on the APR which you pay on the mortgage. e.g over a term of 25 years at an APR of 5.5% you will pay £798.31 as your monthly payment but with an APR of 1.5% over the exact mortgage term of 25 years, you will pay £519.92 as your monthly payment.

Yes, you can get a mortgage for 130000. Speak to a mortgage broker to further assess your mortgage affordability but there are mortgage lenders who are willing to lend you 130000.

Can you get a 0% LTV 130000 mortgage?

Yes, there are mortgage lenders who will offer a 130000 mortgage.

They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand

mortgage or the post office family link mortgage.

Can you get a 130000 mortgage with bad credit?

Yes, you may be able to get a 130000 mortgage with bad credit but this will heavily depend on your circumstances. You should always look to build credit when you have bad credit as this could improve your mortgage affordability.

A bad credit mortgage broker may also be in a better position to carefully analyse your situation and provide you with suitable bad credit mortgage lenders willing to lending to you.

If you are bankrupt then you may need to wait for 12 months after you have been discharged from being bankrupt to get a 130000 mortgage

Bad credit may include:

How to get a 130000 mortgage?

Getting a mortgage can be a very difficult process if not handled with care.

If you are considering getting a mortgage for 130000 then using a mortgage broker may be a good choice as mortgage brokers usually have access to many more products than any specific mortgage lender.

Mortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.

If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit mortgage brokers or self-employed mortgage brokers may be useful.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.