![]() Alternatively, you can choose a variable-rate mortgage that normally tracks the Bank of England base rate. ![]() You'll be able to choose from fixed-rate mortgages – where the interest rate and your repayments remain the same for the term of the deal, which is typically two, three or five years. Once you know how much you could borrow, your next step is to compare mortgages using our comparison service. Self-employed workers may have more limited mortgage choices because their income often varies.Īs well as assessing whether you could afford a mortgage now, lenders will also stress test your finances to check whether you would still be able to afford your mortgage if interest rates increased. They will look at whether anyone depends on you financially and whether you are in permanent full-time employment. What other factors affect how much I can borrow?īefore approving your application, lenders will scrutinise your finances to see if you can afford a mortgage. Lenders will also ask you to show bank statements and payslips to support your mortgage application. The amount you spend on holidays and leisure activities The amount you spend on household bills, such as gas and electricity, broadband and food Your credit record - the better your credit score, the more likely you are to be accepted for the best deals However, lenders also take into account other factors, such as: The method we use to calculate how much mortgage you can get is similar to how mortgage lenders decide if they will accept your application. To help you with this, you can use our mortgage calculator to work out how much you can borrow based on the amount you could afford to pay towards your mortgage each month, rather than based on your income. Once you’ve worked out the maximum amount you might be able to borrow based on your income, you should consider whether you can comfortably afford to meet the monthly repayments or whether you will find it a stretch. This will also tell you the maximum property price that you can afford. We work this out by multiplying your income by up to five times. We'll then show you approximately how much you can borrow for a mortgage. How many children under the age of 18 you have How much you owe on credit cards, loans and overdrafts Your guaranteed bonuses or overtime (if applicable) Who is applying for the mortgage (just yourself or two of you) Our mortgage calculator will help you work out how much you can borrow when applying for a mortgage.Īll you need to do is enter the following information: How to use our mortgage affordability calculator
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