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How much mortgage can I borrow?

how much mortgage can I borrow

By far the most common question we get asked is 'how much mortgage can I borrow?' - and it's not surprising, as the answer to that question will determine what kind of house you can afford to buy.

In this post, we're going to talk about the main factors that companies will look at when it comes to calculating how much they're prepared to lend you for your mortgage.

Your income

Your household income will be one of the biggest influencers when it comes to how big a mortgage you can get.

Companies may lend you up to three to five times your income, depending on your circumstances and other factors such as the ones below.

However, it's worth considering borrowing less than this so as not to risk over-committing yourself financially. Try to leave yourself a buffer to allow for changes in your circumstances such as starting a family or being made redundant.

Affordability

Companies are obligated to lend responsibly and to make sure that they don't leave people with mortgages that they simply can't afford to pay back.

For that reason, they'll look at things like your bank statements, to assess your living expenses and they'll use this information to help them decide how much mortgage you can borrow.

It's a good idea for you to do this too. Try creating a list of your monthly income and expenses and decide a figure that you think you'd feel comfortable paying back each month.

Credit history

When you apply for a mortgage, companies will do a credit check on you. This means they'll use a Credit Reference Agency such as Experian, Equifax or TransUnion to search your credit report and see how you've managed your credit accounts for the past six years.

They'll use this information (along with the information you give them in your application, such as your salary) to calculate a credit score for you - and this score will determine whether they say yes or no to your application.

Not only that, but your credit score will impact what rates you're offered and even how much mortgage you can get.

How do I find out how much mortgage I can borrow?

Now you know what companies are looking at when they decide how much to lend to you - how can you get an idea of what mortgage you'd qualify for, yourself?

Well, there are tons of free online mortgage calculators that you can use.

The Money Saving Expert has this mortgage calculator which will give you an idea of how much you can borrow, based on your income.

If you're trying to get an idea of . how much your monthly payments might be, then The Money Advice Service have this handy mortgage calculator.

Ultimately, you're best off speaking to an expert. A Mortgage Broker will be able to chat to you about your circumstances and advise you on the best options available to you.

If you'd like to book a free consultation with one of our friendly advisers then we'd love to help!

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We'd love to chat to you about finding you the perfect mortgage for your needs. Click below to book your free consultation with one of our expert advisers.

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

BB Mortgages
2019-09-04T15:53:10+01:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

BB Mortgages
2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

BB Mortgages
2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

BB Mortgages
2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

BB Mortgages
2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

BB Mortgages
2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.
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