If you dont have enough capital to buy a home outright, you will have to consider how you can raise a mortgage. Different types of lenders are available for this purpose. Building societies and banks offer the cheapest arrangements, so you should consider approaching only them. If your previous lender was a building society or if you have savings in a building society, contact that one first.

Many banks grant mortgages but they, like building societies, are likely to be wary of someone who has had difficulties making their mortgage payments in the past. If you have tried these options and been refused you can ask an estate agent or mortgage broker to refer you formally to a building society. Be very careful to check whether you will be charged a fee for this introduction, and make sure that you are not obliged to take a very expensive form of mortgage. If a broker fails to get you a suitable mortgage, they are only allowed to charge $1. Brokers can, however, charge for any surveys and other work carried out on your behalf.

If you want the lowest possible monthly payments you should try to obtain a capital repayment mortgage from a building society. If you are working and want a mortgage, write to the lender that you would like a capital repayment mortgage stating your gross income and that of your partner (if any), and how this is made up. Give details of your basic pay, regular overtime and bonuses, and pay raises you are expecting in the near future. Also state the amount of capital that you can put towards the purchase price. Please be specific to make it clear that you have calculated that you will be able to meet the mortgage payments as well as your other commitments.