Know the monthly payment first
Start with the loan amount, interest rate and term in our mortgage calculator. This gives the monthly payment and total interest, but not the other costs below.
Costs when you buy
Depending on the country, buyers may pay property transfer tax or stamp duty, notary or legal fees, land registry fees, agent fees and bank arrangement fees. These can add a meaningful percentage to the purchase price, so ask for an itemised estimate before signing.
Costs while you own
Plan for building insurance, life or payment protection insurance if required, annual property tax, building or community charges and maintenance. A common rule of thumb is to budget a percentage of the property value each year for repairs, though the right figure depends on the property's age and condition.
Fixed or variable rates
Fixed rates protect you from rises for an agreed period, while variable rates usually follow a reference rate such as Euribor and can change. Ask what happens when a fixed period ends, because the new rate may be different.
Test your budget
Check you could still pay comfortably if the rate rose or your income dropped. If you plan to rent the property out, use the rental yield calculator to check the numbers.