Your Financial Status

Every bank or lender uses its own process to calculate how much a consumer can borrow but this is generally based on a few factors:

Income + Spending

Basically, the amount you earn and the amount you spend, including personal finance commitments such as loans and credit cards.

Amount of Deposit

A deposit of 10 -20% is generally considered the benchmark to secure a favourable mortgage deal and avoid other penalties.

Credit Rating

Credit rating can play a big part in the lender's decision. Higher credit scores, above the 850 mark, offer opportunities for better mortgage terms.

Your Lender

The amount you can borrow on a mortgage in the UK is typically 3 to 4.5 times your income, when calculated against your outgoings:

Joint Applications

Joint income mortgages are available for both married couples and partnerships. Tenancy agreements define the share in the ownership.

Bad Credit

For consumers that have previously experienced bad credit, there are still options to pursue though rates may be higher. 

Mortgage Decisions

We advise obtaining a mortgage in principle offer from a lender which is a good indication of your borrowing level before submitting a full mortgage application.

Understanding your monthly financial commitment is a hugely important part of the mortgage application process. Use our mortgage repayment calculator to work out what your monthly repayments are likely to be based on the amount of money you will need to borrow, the interest rate and the term of the mortgage.

Please Note: How much you can borrow will depend on income, expenditure, credit status and the level of deposit.

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