What sum can I borrow?

The amount you can borrow is based upon your ability to make the repayments, and generally that is based upon your income. First you have to plan out your budget in detail, and we can help you with that. We offer you a form that can be used to easily calculate how much you can borrow.

Although you might be tempted to borrow as much as you can, you should not commit your entire available income to a mortgage because things can change in the future. Interest rates can rise, significantly increasing your repayments, or you could become ill or be made redundant.

Before any mortgage lender will offer you a mortgage they will assess your ability to pay and your potential to remain working. Your current income is important, but it is not the only factor they will consider in deciding what size of mortgage you can get.

The type of work you do is important, as is your job security. Are you borrowing jointly with somebody else, and if so what can they afford to repay? They will take any existing unpaid loans or securities into consideration, and also your credit record. Sure, you can still get a mortgage with a poor credit score, but you will likely have to pay a higher interest rate. Naturally, the value of the property you are proposing to purchase will be significant, as will whether or not somebody is willing to be guarantor for you, agreeing to maintain payments if you fail to do so.

You can generally expect to get a mortgage where the repayments are no more than 40% of your monthly net pay (that is take-home after deductions). Any existing loan repayments will be included in this 40%. You might be offered a lower mortgage than you need, or be offered extended repayment terms, so that you can pay less each month over a longer period of time (though more overall in the long run).