Some of the key considerations that lenders will look at when determining how much you can borrow include:
Debt-to-income ratio: Lenders will typically look at your monthly debt payments (including the proposed mortgage payment) and compare them to your gross monthly income. The lower your debt-to-income ratio, the more you will be able to borrow.
Credit score: A higher credit score can help you qualify for a lower mortgage rate and may allow you to borrow more.
Deposit/cash funds: The larger your available deposit, the more you will be able to borrow.
Property value: The value of the property you are interested in purchasing will also be taken into account. As a very rough guide, mortgage lenders will take 4.5x your income e.g. a couple earning £40,000 per year between them, could qualify for a mortgage of £180,000
It’s a good idea to talk to a mortgage broker to get a better idea of how much you may be able to borrow. They will be able to review your specific financial situation and provide you with more accurate information – they’re dealing with clients like you every single day!
At The Mortgage Branch, we are here to help you secure the most suitable mortgage for you, whatever your situation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT