Can You Afford It? Cottage On The Hill, nr wolverhampton

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The Independent Online

Price: £499,950

Agent: Nock Deighton (01746 767 767)

What you get: If three-and-a-half acres of beautiful woodland, a stream and a private lake don't endear this four-bedroom property to you, then perhaps beamed ceilings, a balcony at the back that's the length of the building, a vaulted wine cellar and a sauna will.

Where: Nestled in unspoilt countryside, this property is perfectly situated for West Midlands-based commuters. It forms a triangle with Bridgnorth and Telford, and is only a 15-minute drive from Wolverhampton and a further 20 minutes from Birmingham.

What will I be able to borrow?

The following quotes from Stroud & Swindon (0800 618161) are both for a 25-year fixed term, and require a minimum deposit of 25 per cent, or £124,988, leaving a balance remaining of £374,962.

Two-year fixed rate: The interest rate is fixed at 6.6 per cent until 30 September 2010, meaning monthly repayments will be £2,555.25 or £2,062.29 interest only. After the initial two-year period, the rates will rise to the Standard Variable Rate (SVR), currently 7.29 per cent. Repayments will increase to £2,719.92, or £2,277.89 for interest only. With this option there is also a product fee of £999 and a valuation fee of £370.;

Variable-rate mortgage: This option tracks at 0.5 per cent above the SVR until 30 June 2010, after which it will revert to the SVR. At today's rates, repayments will be £2,842.05, or £2,434.13 interest only. From 1 July 2010, if the SVR remains unchanged, repayments will be £2,719.92 or £2,277.89 interest only. There is no product fee with this option, but there is a £370 valuation fee.

Council tax: Band F £2,013.25

Stamp duty: 3 per cent

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

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