How much can I afford?

Understanding mortgage affordability

Lenders used to simply multiply your income by up to around 5 times to work out your maximum mortgage size. Now it’s a lot more complicated, with lenders checking a wide range of factors affecting mortgage affordability.

Income

Depending on all sources of income, how the lender views and uses this for your affordability.

Outgoings

Lenders will review your committed expenditure to establish what needs to be deducted in order to give you a borrowing figure.

Age

Age now, how long the borrowing will be needed over and ability to have the mortgage cleared by retirement.

Address history

A lender needs to be able to find and establish your address history to link with the credit file and establish a credit profile.

Dependants

Who you are responsible for, and what those costs may look like now and in the future.

Deposit

How much deposit is being provided, where it is coming from and where it is now.

Credit file

This will determine which lender we may approach for your borrowing, lenders have various risk appetites, depending on your ability to repay your mortgage debt.

Property type

House, apartment, new build, second hand, freehold, leasehold, property value and borrowing needed against it,. This can be critical with which lender we choose to make an application.

Employment type

Fixed, permanent, contract, flexi, part-time, self-employed, sole trader, limited company, just started, not yet started - lenders will view your position and income in a variety of ways, we link the lenders criteria to your situation for maximum borrowing.