How much can I borrow on a mortgage?

So, how much can I borrow on a mortgage I hear you ask? The amount you could possibly borrow is usually based on a multiple of your income.

Lenders traditionally offer an amount somewhere between four and five times your income, although sometimes they may offer more or less than this, depending on their criteria. If you are borrowing with a spouse or partner, most lenders will combine your incomes and use your contractual outgoings to establish affordability.

Mortgage affordability is, however, subject to a number of things, such as your credit history, monthly outgoings and deposit, and it can also vary from lender to lender.  Most will also consider the number of financial dependents that you have (normally children) who are living at home, as this can have a material impact on the amount of disposable income left at the end of each month.

It is also important for you to consider what you feel comfortable spending on a mortgage each month.  Is it going to allow you to continue to do all the lifestyle activities that you want to?  While you might want to cut down on certain luxuries, how much do you really enjoy your artisan coffees, or regularly eating out?

Ultimately the first thing you should do is speak with a mortgage adviser who has access to the whole of the market.  They can assess your affordability, agree a budget, work out how much you can borrow on a mortgage and guide you through the home buying process.  

Hopefully this answers your question, how much can I borrow on a mortgage? if it doesn’t, please do give us a call on 01206 911 401.