What is the Maximum Mortgage You Can Borrow?

Unfortunately, there is no single answer to this question as there are literally thousands of mortgage products out there and each lender has its own way of calculating affordability and risk.

As a guide, however, most lenders use income multiples of between 4 and 5 times your income to work out your maximum borrowing capacity. So, if the joint income of all borrowers is £50,000 and the lender uses an income multiple of 4, you could borrow up to £200,000.

But it’s not quite that straightforward. Lenders will also want to assess your credit file and look at your monthly expenditure. Calculating affordability is crucial and, if you have lots of existing commitments, this could prevent you from borrowing the full £200,000. Some lenders, though, might allow you to consolidate other debts into your mortgage to help you manage your monthly payments.

With so many variables, the only way to make sure you get the best mortgage at the lowest rate is to get advice from a qualified mortgage broker.

At My Mortgage Maker, we help customers in Bath, Bristol, and Woking secure the best mortgage deal possible. Get in touch today and chat with an expert about your mortgage or remortgage.