How Much Can I Borrow With a Mortgage?

The excitement of buying a new home is usually closely followed by questions like, ‘How do I calculate how much mortgage I can get?’ As a general rule, most lenders will offer a mortgage based on 4.5 – 5.0 times your annual salary (sometimes in rare circumstances up to 5.5 times). The amount will obviously differ from lender to lender, and there are plenty of other variables to take into account.

Let’s have a closer look at how to estimate the amount you may be able to borrow, and how to go about securing the ideal mortgage. If you’re still left with questions, such as ‘How much mortgage will I get?’ It may be a good idea to engage the services of an expert, such as the advisors at Stuart Brown Mortgage Services.

Tips For Calculating How Much Mortgage You Can Get

Let’s assume you’re new to all of this. If you’re not, consider it a refresher course. Unfortunately it’s not as simple as popping your head around the door of your local bank and asking, ‘How much mortgage will I get?’ There are some necessary hoops you have to jump through first!  When you want to calculate how much mortgage you can get, here are some of the things you’ll need to consider and provide:

  1. Proof of identity – You need to prove who you are. Bank Statements, Utility bills, passport, driving licence are all suitable forms of ID.
  2. Proof of income – No lender wants to put you in a difficult financial position. That’s why they need to see how much you earn. Three months recent payslips & annual P60, or 2 years accounts / tax returns if you’re self employed are usually the minimum requirement.
  3. Financial commitments-Although your mortgage repayments may take up a large percentage of your monthly outgoings, there are other fixed and variable commitments you likely have to meet on top. These may include; loans, credit cards, cars, pensions, gym memberships, childcare etc, etc.
  4. Your financial history – It may be worth getting your credit score checked prior to any formal meeting about obtaining a mortgage. Those 2 missed payments on your credit card, three years ago, may yet come back to haunt you! Knowing what might come up in a financial search will give you time to rectify the situation. This could help secure a greater chance of being accepted and possibly also a more favourable mortgage offer. Multiples credit checks should be avoided, better take the advice of a single independent broker who can advise on multiple lenders and minimise both credit searches undertaken, and time spent looking at unsuitable options.
  5. Stress tests – stress tests are there to consider potential changes in the financial landscape and work out the likelihood of you being able to keep up payments if interest rates were to rise dramatically. Very apt in today’s rather unpredictable financial climate.

Speak to an Actual Mortgage Advisor

Whilst there are many online mortgage calculators to help you with your application, there’s no substitute for speaking to an actual mortgage advisor. They may spend their time dealing with facts and figures, but they have the human aspect too.

A good mortgage advisor will be able to get to the bottom of your financial situation. They can answer any questions and allay your fears, when it comes to calculating how much mortgage you can get, and where is best to apply. Also importantly they can calculate how much you can afford too.

It’s worth doing some homework before you arrange a meeting. Work out your budget taking into account realistic take home pay and any other outgoings you have including utilities, credit, childcare etc. Leave some room for unexpected expenses and general living, and you will be left with an amount that you feel comfortable committing to every month.

Then you can concentrate on the more exciting process of looking for your new home. If you think you’d benefit from an informal chat about mortgages, one of the advisors at Stuart Brown Mortgage Services is a great place to start. What are you waiting for?!


Our email is:

Telephone 01525 877650 or 01442 252040

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage.

Our Testimonials

Book An Appointment If you would like to arrange a telephone call or meeting, please fill in your details below and we will respond as soon as possible.

    How Did You Find Us?*