How much mortgage can you borrow?
The amount of mortgage you can borrow depends on the following factors:
Your mortgage needs: It is the amount you want to borrow in relation to the property’s value (also known as LTV, or loan-to-value). Mortgage lenders will specify an upper LTV limit for each of their mortgage products.
Your credit score/result: Your credit score card determines if a lender will consider you or not. Your chances are more if your score card is high
Your income: Income is crucial to determining how much mortgage you can have. All income you declare in your mortgage application will need to be provable – usually through you providing your latest pay slips, pensions and benefits statements.
Your outgoings: Lenders also consider your expenditure in determining the amount of mortgage you can borrow e.g. Tax, Bills, Loan and credit card repayments, domestic utilities, insurance etc.
The probability of you getting money from the Lender is determined by how much you can afford, if you can pay back and how you can make payment.
Apart from the deposit, there are other costs which may be incurred such as legal fees, stamp duty, valuation/survey fees, estate agents fees (if selling an existing property) and possible mortgage administration fees and insurance premiums. We often assist with the process. We work with a lot of good mortgage brokers so email us or give us a call if you would like a recommendation.
Please call us on 0207 183 0084 or email us on email@example.com for a fixed fee conveyancing quotation and to ask us about any reservations or queries that you may have; we are always happy to assist.
Ola Leslie Solicitors