Are you left confused when it comes to trying to work out how much you can borrow?
Our easy-to-use mortgage calculator will provide an accurate guideline of how much you can borrow in seconds, but let’s break down the affordability process.
The affordability process is where a lender, when reviewing your mortgage application, will multiply your income to figure out how much money you can borrow.
But even at this early stage it gets confusing as every lender uses a different number to multiply your income by. Some multiply by three, some by five. But it is almost always between the two.
However, if you are trying to consider how much you will be eligible for, the difference between three times your income and five times your income can be significantly different, and could effect your decision completely.
How much you can borrow also depends on the risk you present to the lender.
If you have a poor credit rating, or a lack of employment history, for example, you will provide a higher risk to a lender.
Incases like this, obtaining a mortgage is still possible, and our expert advisers will take the time to understand your situation and present your application the lender in the best possible way.
On the flip side of this coin, you can decrease the risk you present to the lender by providing a higher deposit than usual. A typical deposit is 10%, but if you can provide a deposit of 15-25%, you will reduce the loan-to-value you require, and in turn, the risk you provide to the lender.
Our mortgage calculator lets you work out how much you can borrow quickly and easily, and takes into account all the key factors mentioned above such as deposit, loan-to-value amount and even recommended house prices for you.
Why not try it today, and then chat through the illustration with one of our expert advisers?