The amount you may be able to borrow is:
But for most people looking for a mortgage nowadays the answer is more flexible – or complex, depending on the way you look at it. Either way, it may mean that you can borrow more than you expected to by using the simple formula above. And that’s where the advice of a specialist, independent mortgage broker can prove invaluable.
There are a number of basic factors that influence how much you can borrow, including:
- The deposit you can afford (lenders apply maximum loan amounts when your deposit is a relatively small percentage of the value of the property)
- Your total income (salary, commission and bonus – from all sources) – including the income of anyone with whom you are buying
- Your financial outgoings – particularly regular outgoings which affect your ability to repay the mortgage on a monthly basis
- Your credit history – how reliable are you at repaying your debts?
- The type of mortgage you require – residential or buy to let, repayment or interest only
- Whether you are employed, self-employed, a UK resident or a foreign investor
The above calculations are only examples and are not guaranteed. Loans are subject to status and valuation and are not available to persons under 18 years of age. Written quotations available from individual lenders. For secured loans the lender will require a charge on your property and in the case of endowment mortgages, an endowment/life policy for the amount of the advance and a charge over the property. For interest only mortgages, the above calculations do not take into account the cost of any endowment, pension or other savings plan being used to repay the loan. In addition, the figures shown in respect of both repayment and interest only mortgages do not include the cost of additional life cover.