Can you afford it?: Trevail House, Trevail, Newquay

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The Independent Online

Price: £500,000

Agent: Stags (01872 264 488)

What you get: A detached five-bedroom home with one-bedroom annexe, four miles from the resort of Newquay. Ideal for a large family or as a profitable second home.

Where: A mile from the coast and Holywell Bay, with its schools and abundance of activities. Truro is a 30-minute drive away.

How much will I be able to borrow?

These quotes from Yorkshire Building Society (0845 120 0100) are for a 25-year fixed term and require a minimum deposit of 10 per cent, or £50,000, leaving a balance of £450,000. Both options carry an arrangement fee of £995 and a mortgage fee of £90. For both, lending is based on four and half times single or joint income, which would need to be at least £100,000. If you elect for interest-only, a suitable repayment vehicle would be needed.

Five-year, fixed-rate mortgage:

The interest rate will be fixed at 6.49 per cent to 30 June 2013. You pay £3,032.46 a month on a repayment basis or £2,433.75 interest-only. After five years, rate reverts to the standard variable rate (SVR), now 6.9 per cent; the monthly payment would be £3,130.28 (repayment) or £2,586.67 (interest-only). There's an early repayment charge of 5 per cent until 30 June 2011, then 4 per cent until 30 June 2012, then 3 per cent before 30 June 2013.

Two-year variable-rate mortgage:

Tracks at 1.59 per cent above base rate, currently at 6.59 per cent, until 30 June 2010. At current rates, payments will be £3,060.60 a month (£2,471.25 interest-only). After 30 June 2010, the interest rate reverts to the SVR (currently 6.9 per cent), and the monthly payment would be £3,142.79 (£2,586.83 interest-only). The early repayment charge is 3 per cent until 30 June 2010.

Council tax: Band E, £1,632.92

Stamp duty: 4 per cent

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

Information correct at time of printing. Quotes subject to status

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