Can You Afford It?: Apartment, Waterloo Quay, Liverpool

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The Independent Online

Price: £169,995

Agent: King Sturge 0151-242 6490

What you get: This two-bedroom apartment on the fourth floor of a modern complex is ideal as a first step on the property ladder – buyers can rent a room if mortgage payments are an issue. It looks like a sound investment, too – apartments in Waterloo Warehouse next door are selling at more than £250,000.

Where: From the balcony, this riverside flat offers great views across the Mersey and to the city. It's just five minutes from the business district.

How much will I be able to borrow?

The following quotes from Yorkshire Building Society (0845 1 200 100) are for a 25-year fixed-term mortgage requiring a minimum deposit of 25 per cent, or £42,499, leaving a balance of £127,496. Both options carry a mortgage fee of £90 and a £290 valuation fee. Lending is based on borrowing four times your single or joint income – at least £31,874 – but the exact amount would depend on circumstances. If you elect to only pay the interest each month, a suitable repayment vehicle would need to be in place.

Five-year fixed-rate mortgage: The interest rate is fixed at 5.99 per cent until 31 August 2013. Monthly, you will pay £819.83 on a repayment basis, or £636.42 interest only. After five years, the rate reverts to Standard Variable Rate (SVR), currently 6.90 per cent, and monthly payment would be £880.51 on a repayment basis, or £733.04 on interest only. Early repayment charge of five per cent until 31 August 2011, then four per cent until 31 August 2012, then three per cent before 31 August 2013. Fee: £2,495.

Council tax: Band C, £1,285.67

Stamp duty: 1 per cent, £1699.95

Legal costs to include land registry and search fees: from £1,500

Information correct at the time of printing. Quotes subject to status