What Can I Borrow?

This perhaps should be rephrased 'what can I afford?'. With the current economic conditions lenders will greatly extend their traditional multiples of income. For example, where the loan is less than 75% of the property's value, many lenders do not bother even to check what you earn. It is therefore vitally important to work out what you can afford on a monthly basis.

Even where income has to be proven loans of up to 5 times a single income and 3.5 joint income can be obtained. Such outgoings such as credit card payments, bank and car loans are deducted from income before applying these multiples.

Overtime, bonus and other allowances are treated differently by individual lenders and advice will be needed of which lender suits.

In our opinion these very high multiples of salary are dangerous and careful budgeting is necessary, to make sure the payments are affordable. The focus of most people's minds at this stage is buying the house, but it is vital that the lifestyle you want to have is factored into your budget. Everybody is different, if you want an active social life, for example, bring it into the equation.

Use our online budget planner to see what you can afford to borrow.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT
KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
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