How Much Money Am I Able To Borrow? - RiteMortgages

How Much Money Am I Able To Borrow?

You have saved a deposit, your credit is looking good, you have solid reliable job and you want to move home and get your own place with the liberation and freedom that comes with it. You know you need a mortgage but you’re not sure how much you need or how much they will give you. That’s where we come in.

We calculate this based on a simple income multiple, but, in reality, it’s much more complex.

When you apply for a mortgage, lenders calculate how much they’ll lend based on both your income and your outgoings – so the more you’re committed to spend each month, the less you can borrow. It’s all about controlling your spending. Eating out constantly will put pressure on your finances then it’s simple, don’t eat out as often.

Should I take the Max I can Borrow?

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Too often people dive straight into house hunting. Not having a clue how much they can afford and how much they will be able to borrow. It’s all about getting that lovely house as quick as you can. Unfortunately in reality, this is not the case. You should really find out how much you are able to borrow before doing any of this. But it is important to remember not to get carried away and always remember how much you can truly afford.

When remortgaging have a look at how much money you really need to borrow before applying to a lender. Don’t get carried away with the amount a lender may be willing to offer you. Stick to what you need.

How much can I borrow?

The amount you are able to borrow can depend on the lender and what type of property it is that you are buying. Lenders will always take into account your annual income, what your outgoings are and what you spend your money on whether that be football tickets or clothes. This is what is known as the affordability assessment.

If a lender doesn’t think you will be able to afford the mortgage payments it can be down to a number of reasons. From having bad credit to being self-employed to not having any credit at all. To really find out how much you are able to borrow, you will need to contact a lender. But to prevent any damage getting done to your credit score and report, contact our advisers for an easy and simple conversation about what you can do and what lenders will accept your application.
Disclaimer – This does not constitute financial advice. Please speak to a professional adviser for information specific to your needs and circumstances.
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