How Much Can I borrow for a Mortgage?

February 19th, 2008 | by admin |

The amount that you can borrow for a mortgage depends on many factors.

Income Multiple. The simplest guide to mortgage lending is using a simple income multiple. In an era of higher interest rates, the traditional income multiple was 3 times income. Thus on the average UK salary of £30,000 you would be able to get a £90,000 mortgage. However, in recent years, these income multiples have been stretched, especially for young graduates and professionals. It is not uncommon for the big mortgage lenders to offer upto 4.5 or even 5 times income. For example, the Bristol and West professional Mortgage enables borrowing of upto 5 times individual income or 4.5 times joint income. This is one of the best criteria for borrowing a large amount.

Affordability. Another criteria for mortgage lending is affordability. This takes into account not just income but regular outgoings like other debt payments. Therefore, if you have low overheads and no other debts the amount lenders will give will be much higher. Abbey offer a mortgage

Other Routes. If you really wish to borrow more, some lenders take the self certification route.  Self certification mortgages do not require you to prove income, but it can be dangerous to exaggerate income


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