How Much Can You Borrow?
You should only borrow what you can comfortably afford to repay. You need to consider all of your important expenditure and plan your mortgage repayments carefully and sensibly.
Most lenders use an ‘affordability’ based calculation sometimes with a maximum income multiple based cap (3 to 5 times your gross wage after taking into account any loans or credit cards) .
Either way they will not usually take all the elements of your income into account e.g. they may only take half of overtime or second jobs into the calculation. They all have different approaches to proof of income and some will want the last three months payslips to prove overtime and extra payments whereas others will use P60 information to ascertain the level they will include.
Please call us so that we can discuss accurately what you would be able to borrow (and afford!).
We prefer not to have a lending calculator on our website because of the vast difference in amounts lenders will lend and the way that they each consider how to do so. Be aware that the calculators that are on the banks and building societies public websites tend to be inaccurate, in any case you would need to know what attitude to your income the lender had to be able to get an accurate result.
The best way for us to tell you how much you can borrow is to arrange an appointment where we can review your situation properly. Of course in doing so we can tell you what multiple lenders will lend at the same time, something yore bank will never do!
How Much Can You Afford?
You should sit down and work out what you expect the monthly bills to be including any travel costs, existing credit commitments, food etc.
Don’t forget that interest rates could increase in the future so whatever the cost of the mortgage initially may not stay the same in the long term.
You should also factor in extra costs for protection i.e. life & critical illness cover, accident, sickness, unemployment and buildings and contents cover too.
We will cover all of these with you in a typical meeting and give you an idea of cost quoting form the ‘whole market’.
Click here for a downloadable copy of our budget planner.