Mortgages

How Much Can I Borrow?

We will be able to arrange a fees free mortgage advisor to provide you with the best possible mortgage based on your current circumstances. Although your mortgage will be compared to the whole of the market there will also be some hard and fast rules to borrowing funds.

Many people employ a Financial Advisor who will calculate for you the amount you are likely to borrow given your current circumstances and whether you are likely to need an Adverse Credit product or a Self Employed mortgage. The amount of deposit you put down will be directly influenced by the type of mortgage you go for.

As a general rule of thumb if you are a single applicant you will be offered around three to three-and-a-half times your annual income. If the application is for a joint mortgage then the amount you will be able to borrow is around three times the first income plus the second income or two-and-a-half times your joint income.

The other factor is the LTV or loan to value rate. This is the percentage of the value of the property a mortgage provider is prepared to lend you.

Most providers will not lend above 75 per cent of their valuation of the property. The majority of lenders prefer you to have a far higher deposit than was required before the credit crunch of 2008. 100 per cent mortgages are no longer available.

If you are self employed then you will need to provide your lender with the information required to prove your turnover and income.

Your fees free mortgage advisor will be able to give you the latest information on the income multiples currently required by lenders.

 

Take a look at our Morgage Calculators - these will give you an idea of your mortgage repayments, interest rate payments and deposit amounts.

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