How much can I borrow on a mortgage?
The burning question... How much can I borrow on a mortgage?
- I’ve been turned down for a mortgage! They say I don’t earn enough?
- Low income mortgages?
- I’m a zero hour contract worker! Can I get a mortgage?
- I have a Buy to let property in the background, is this affecting my ability to get a mortgage?
- Do any Mortgage lenders take benefits, or maintenance into account?
There are so many reasons why a person maybe turned down by a lender, because of the lenders perception of affordability! This doesn’t mean no-one will do it, what Santander don’t like, NatWest do and visa versa. How much can I borrow on a mortgage? As a rule of thumb 4.75x joint income on a purchase, or 5x joint income on a re-mortgage, but so many things differ between lenders. Are you paying existing credit off? How many dependants? Age verses length of the term of the mortgage, the list is long but here at Brunswick we know who, likes what.
Take a re-mortgage for example, you want to borrow £30,000 to convert the loft. Your lender tells you we can lend you an extra £25,000. You may believe that’s the best you can get, cut your cloth accordingly and end up with a good loft conversion but not a great one! If you had come to us we may well of got you that £30,000 at a better rate but now you’ll never know and you are left with a loft space you’re not wholly happy with!
Take buying a new property for example you want to buy for £200,000. You have a deposit for £20,000 and you need a mortgage for £180,000. Your income is made up from different sources and your suggested lender tells you that this kind of income can’t be used. They are right according to their policy but not necessarily for another lender. You accept their so called expertise on their products but they have absolutely no idea of what other lenders products exist. What happens when you are told by their adviser that your maximum mortgage is £160,000. You’re relieved that you can get a mortgage but the house you can get isn’t as good as the other as it’s not in such a good location. You may have been able to get a mortgage for £180,000 and you could have got that £200,000 house but now it’s too late as you have committed to buy the cheaper property. So, why does that matter? The house for £200,000 will rise in equity faster than the one for £180,000.00 as it's in a more desirable area. So not only have you lost out on your ideal home but also valuable equity too.
Therefore, to answer your questions 'How much can I borrow on a mortgage? You need to ensure you shop around and don't just take the first answer from your current lender. We search the whole market for you! We can’t produce miracles but we can do better 9 times out of 10 than a single lender! Give us a ring on 01452 413300! We would love to hear from you.
You can also read our blog on Credit Scores HERE!