Each lender has their own way of working out mortgage affordability. The simplest systems begin by using what are known as income multiples. Typically, the maximum you can borrow is 4 -4.5 times your income. Depending on which lender you use, you may be able to include income from a second job or some state benefits when working out your maximum borrowing capacity.
But this is just a start. Lenders will also
need to examine your expenses to make sure you will be able to keep up with
your repayments.
While your credit history, age, and deposit
amount don’t directly impact mortgage
affordability, they can influence the rate you are offered. And, of course,
a higher rate means higher payments which will affect whether a loan is
affordable.
As there are so many variables, you’re
advised to speak to a mortgage broker
who will help make sure you apply to the right lender according to your
circumstances.
At My Mortgage Maker, we help people looking for a mortgage or remortgage in Bristol and the
surrounding areas. Get in touch to discuss your options and how much you can
afford to borrow.
