| This is a difficult
question to answer, as the amount of capital that you are permitted to borrow
from UK mortgage lenders will depend on a number of factors including the lender
that you choose and your own personal and financial situation. It is usually said
that you should have at least 5-10% of your property’s price as a deposit,
but now mortgages are regularly offered for 100% or even 125% so it is possible
to borrow at least the full amount of the purchase price. It is worth bearing
in mind that the larger deposit you are able to put down, the lower the interest
rates are likely to be from UK mortgage lenders.
There are many UK mortgage products available today for customers who might
have special financial circumstances, so it is worth speaking to mortgage lenders
UK directly in order to see exactly how they can help you, whatever your situation.
As a rough guide, it is safe to say that the majority of lenders will be willing
to lend you up to three and a half times your annual income. For example, if you
have a yearly salary of £20,000 then you could expect to borrow around £60,000
- £70,000- on your mortgage. If you are married or co-habiting with a partner
then it is possible to get a mortgage based on your joint income, which will able
you to procure a larger amount of capital. As joint applicants you can roughly
work out the amount you will be able to borrow by doing either one of the following
simple calculations-
• Multiply the first income by 3.5 and add this to the second annual
income.
• Multiply the joint income by 2.5.
In order to work out how much you can afford to pay back on your mortgage each
month you should calculate your net monthly income. Add up all your monthly expenses
and subtract this from your monthly salary. Expenses might include some of the
following:
• Electricity
• Gas
• Telephone bills
• Water rates
• Council tax
• Food
• Clothing
• Credit card bills
• Loan repayments
• Insurance
• TV license
• Entertainment
Once you have worked out the amount of money that you can spare each month
it is important not to dedicate all of that to your mortgage repayments, as you
will need to be able to account for unexpected costs and bills. Armed with these
figures you are in the better position to approach mortgage lenders UK or simply
begin house hunting.
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