How much can you borrow : Online Mortgage Calculator
Most people believe that mortgage lending is based on a simply income multiplier, however mortgage lending is much more complicated than that.
How much can I borrow?
Lenders will check this, but we can too.
Most people think that Mortgage lending is based on a simple multiplication of your annual income, whilst this used to be true (to a point); recent legislation has now meant that you are required to go through affordability checks and the mortgage lender will also look at your other financial commitments.
The general mortgage lending is a multiple of 4 times your annual salary, some mortgage lenders may push this depending on your personal circumstances.
Our advice to you is to make an enquiry using the Quick Quote enquiry form and one of our qualified mortgage brokers will help you calculate the amount of mortgage you can borrow. You can of course call the team on 03333 44 85 11.
Send us an enquiry
What can you afford?
Everyone’s mortgage needs and wants are different, every mortgage lender looks at each application from a different view. So its a good idea to have in mind the type of property you want and what your budget might be.
Deposit is important, so put yourself in the Mortgage Lenders shoes. If you were to buy a property with no deposit, that Mortgage Lender isn’t seeing any commitment from yourself and literally has 100% of the property’s risk. Thats why when you take on a 75% loan to value (eg. you put £25k down on a £100k house) the rates start to lower, as the lenders risk is reduced.
Don’t forget to keep a pot of money to one side for other costs, these can be for solicitors, stamp duty, removal firms…
Complete the enquiry form for a free 30 minute consultation with one of our qualified mortgage advisers or call us on 03333 44 85 11.
Additional Information
Lenders should lend responsibly. This means that they should consider whether you can keep up the mortgage repayments now and throughout the term of the mortgage; for example after an initial discount period ends. They should base this on things like your income, expenditure and other circumstances.
Mortgage lenders have in the past offered to lend a sum based on a multiple of your salary (before tax).
If you have other money coming in, such as bonuses, overtime or commission, lenders may take account of only half of this because it is not guaranteed income.
Additional Information
Giving the correct information when applying for a mortgage is very important. By providing false items, this can be classed as fraud and worst case you could end up with a prison sentence, on the other side of the coin you may end up with a mortgage product that you can’t afford and actually lose the home you are living in.
If you ever complain about your mortgage broker, your initial forms will be taken into consideration, so its vital that you provide the lender with the truth so that the broker can do their job properly from the outset.
When it comes to buy-to-let mortgages, make sure that you don’t try and take a standard mortgage product out on your own home to try and cut corners, mortgage lenders to make random checks on the property and you will need to supply the mortgage provider with information on the adults living in the property, these can be easily checked against the electoral role.
Take advantage of the 30 minute free consultation by calling on 03333 44 85 11 or use our quick quote enquiry to find out more.
I've got bad credit, how much can I borrow?
If you have had previous credit issues, CCJ’s, missed payments, IVA’s or maybe you are a discharged bankrupt. You may find it much harder to get on the housing ladder.
Even if you can, you may find that a larger deposit is required, you may pay a higher rate of interest or even a mixture of the both.
As everyone’s circumstances are different, there is no better way of trying to obtain a mortgage, than through a broker. Specialist brokers have access to the Whole of the Market, to help you find the right deal for you.
For impartial help and advice on your bad credit mortgage, then speak to the team on 03333 44 85 11 or use our quick quote enquiry form.
Can I get a Mortgage?
Every Mortgage lender is different and as our mortgage brokers cover the whole of the market and specialist mortgages, we maybe able to help you own your own home.
The first thing we would recommend is to get all of your finances in order. Go to Experian and Equifax and obtain a copy of your credit report. Study the report and make sure that its all in order, keep an eye out for any red dots to show that you may have missed a payment. Anything that you don’t feel is correct, get in touch with the lender and they must correct it for you.
Every mortgage application is judged on a number of different factors from your employment to age, credit score to the type of property.
Get in touch with one of our qualified Mortgage Brokers to find out how they can help you. Complete the Quick Enquiry form or call them on 03333 44 85 11.
What deposit will I need?
The days of 100% plus mortgages have gone, 95% mortgages is about as low as you can get. Even then, its very difficult to meet the affordability checks if you are right on the ceiling of your mortgage lending.
You also have to remember that the lower the deposit, the higher the mortgage rate and this is purely down to risk. Its worth a read about Loan to Values then you will see why the mortgage rates goes down the more money you can out down.
Whilst the governments Help 2 Buy scheme has enabled people to buy their own home with a 5% mortgage, this scheme isn’t the best deal for everyone.
As our Mortgage Brokers cover the whole of the market, meaning that they can literally pick and choose the right mortgage deal for you and your personal circumstances. Some of our brokers also deal with specialist mortgages.
The more money you can put down the better. Some building societies such as Nationwide even offer specialist savings account to help you on your way.
Use the quick quote application or call the team on 03333 44 85 11 for help with your mortgage.
Affordability Assessment
Due to the credit crunch, its now common place for Mortgage Lenders to carry out affordability assessments when you apply for a mortgage product.
Each mortgage lender has its own way of doing this, but generally they will look at your total income, financial commitments, maintenance payments and interest rate adjustments.
Our mortgage brokers will help you to work out the best mortgage deal that will suit you and your needs, they are duty bound to ensure that the mortgage you take is affordable so you can feel safe in the knowledge that the advice given by the broker is the correct advice.
Call the team on 03333 44 85 11 or complete the contact form.
How much can you afford?
When considering how much you can afford, its best to look at a number of factors:
- On-going Salary : Could circumstances change?
- Future plans : Maybe planning a family or career move
- Financial Markets : Unstable economy means difficulty with lending
- Interest Rate change : All time low at the moment, but will it last?
There are three main areas that will effect your mortgage repayments, these are:
- How much you can borrow on a mortgage
- How long you want the mortgage for
- And the interest rate deal you choose
For impartial help and advice on your mortgage or re-mortgage, then speak to the team on 03333 44 85 11 or use our quick quote enquiry form.
I can afford it now, but what if...?
You may be able to afford the repayments now, but think about what could happen if your (or your partner’s) income fell or if interest rates increased. We list a few issues that could arise, so you know how you could make plans for them:
Fall in income…
You could lose your job or take a lower paid job role
You may need to stop or slow down work to look after dependents
You may get made redundant
You may start a family and take paternity/maternity pay
Mortgage Repayment rises…
Maybe you are at the end of your discounted mortgage rate
Interest Rate rises, it maybe at a low at the moment but will it last?
Change from standard mortgage to buy-to-let
What happens if the interest rate rises?
Mortgage rates are usually set by the mortgage lenders, but based closely to the Bank of England base rate. Whilst we have some of the lowest rates available, this may not last in which case as the interest rate goes up, your mortgage repayments will do to.
Mortgage rate rises will effect you, unless you have a fixed rate mortgage. Even then, it maybe better to fix the rate for the longest possible period that you feel comfortable with or thats been recommended by your mortgage broker.
Mortgage Offers Coming to an end?
Discounted rates, fixed rates and special rates are only available for a set period, usually between 2 and 5 years. When this period ends, it could result in much higher rates so its best to get in touch with your mortgage broker to re-do your mortgage deal.
What about future changes…
First off, its best not to take out the biggest mortgage you get offered, personal circumstances can change so be wary of this is you are on the brink of being dry.
Try and build up an emergency fund, saving £25-50 per month into a savings account that you can’t touch, really can make a difference. There are recommendations out there, that you should have the equivalent of a years salary in the bank, however we all know that it isn’t always possible. But a few hundred pounds can make a difference.
Insure yourself…
There are quite a few insurance products available in the market place that can help protect you agains accident, sickness, unemployment, etc. Our specialist mortgage brokers can help you by providing a no obligation quotation. Click on insurance for more information.
How much can I borrow if I'm on...
£10,000
|
Credit Rating |
Good Credit |
Bad Credit |
|
Nearly all Lenders |
£30,000 |
£27,500 |
|
Most lenders |
£35,000 |
£30,000 |
|
Some Lenders may |
£50,000 |
£32,500 |
How much can I borrow if I'm on...
£50,000
|
Credit Rating |
Good Credit |
Bad Credit |
|
Nearly all Lenders |
£150,000 |
£137,500 |
|
Most lenders |
£175,000 |
£150,000 |
|
Some Lenders may |
£250,000 |
£162,500 |
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% of the amount borrowed.