Can You Afford It?: Old Quay Cottage, near Plymouth

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The Independent Online

Price: £209,950

Agent: King Sturge (01752 202 121)

What you get: A large, semi-detached two-bedroom cottage, lovingly restored, that would serve a small family or those seeking a second home. Wonderful views from a balcony overlooking a busy marina.

Where: Clovelly Bay Marina is in the fishing-village of Turnchapel. Plymouth centre is five miles away.

How much will I be able to borrow? The following quotes from Yorkshire Building Society (0845 1 200 100), for a 25-year fixed term, require a minimum deposit of 25 per cent, or £52,488, leaving a £157,462 balance. Both options carry an arrangement fee of either £1,995 or £995 and a mortgage fee of £90. Lending for both is based on borrowing four times single or joint income, which would need to be at least £39,366; the exact amount depends on individual circumstances. A valuation fee of £320 applies to both options.

Five-year fixed-rate mortgage: The interest rate will be fixed at 5.99 per cent to 31 August 2013. Monthly, you'll pay £1,012.51 on a repayment basis or £786.00 interest only. After the five years, the rate reverts to the Standard Variable Rate (SVR), currently 6.9 per cent, and the monthly payment would be £1,088.03 on a repayment basis, or £814.27 interest only. There is an early repayment charge of 5 per cent until 31 August 2011, then 4 per cent until 31 August 2012, then 3 per cent before 31 August 2013. The arrangement fee for this product is £1,995.

Two-year variable-rate mortgage: Tracks at 1.19 per cent above Bank of England Base Rate, currently 6.19 per cent, until 31 August 2010. At current rates, monthly repayments will be £1,031.82, or £812.24 interest only. After 31 August 2010, rate reverts to the SVR, currently 6.9 per cent, and the payment would be £1,097.60, or £905.3 interest only. The early repayment charge is 3 per cent until 31 August 2010. Arrangement fee for this product is £995.

Council tax: Band B, £1,007.47

Stamp duty: 1 per cent, £2,099.50

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

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