This
depends on how much you earn andhow much the property you
want to buy is worth.
Most lenders will loan up to 75% of the
property's value and many will go to 90 or 95%.
However
some will let you have up to 100% - but you'll pay over the odds for this and
will probably be forced to buy
mortgage
indemnity insurance (bad).
A
few will even lend more than 100% but special rules will apply.
Here's
a secret: Assuming you have a regular income and clean credit history
you're likely to get a loan fairly easily. Despite the impression you may be given
that you've got to jump through the hoops, the competition between lenders
to get your business is fierce.
The
amount you can borrow will vary between lenders but the rule of thumb is three
times your annual earnings. However typical variations would include:
Couple 1:two and a half times both annual incomes
Couple
2:
three to three and a half times the greater income plus one year of the second
income.
Check
out our calculator,
either now or later, to see how much you can borrow.
Some
lenders now use more sophisticated credit rating methods, where
they examine your income and your outgoings. The idea is that every borrower
has unique circumstances. Someone with teenage children and high outgoings
can't afford to borrow as much as a singleton earning the same salary.
Sometimes people are lent five times income.
Depending
on the area you want to buy in, the lender may refuse a loan
eg if they feel the property isn't expensive enough for the
area. More usually, it's the opposite case - where a property
is seen as too expensive.
Note that how much you can borrow is not necessarily
what you can afford
You
may be able get a mortgage which stretches your budget to the limit but leaves
you in trouble when you have to pay the other
costs involved in buying your homeand its future running costs
Some lenders will want to estimate this by checking your average outgoings eg
your household bills, any debts etc. Some will get you to fill in a detailed questionnaire
either by hand or on the phone or online etc.
If
you're a first time buyer it will always help
if you can show you've been paying regular rent for a similar
amount to what your intended mortgage payments will be.
Read
enough? Just want a quote? To get
your best mortgage quote quickly and easily we can
put you in contact with a recommended mortgage adviser. It's free,
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