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MORTGAGES - HOW MUCH CAN YOU BORROW?


The amount that a lender will agree to lend you is based on your income, deposit, credit history, affordability and several other factors. Each lender varies as to the criteria they apply and therefore the amount they will lend to you.

The table below is a rough guide only as to how much you might be able to borrow. It gives you a guide to the amount you could borrow as a multiple of your income (e.g. a first time buyer with a 10 % deposit is likely to be able to borrow a sum equal to their annual income multiplied by 3.5).

Usually you can include as part of your income 100% of a guaranteed bonus/over-time and 50% of a bonus/regular over-time that is not guaranteed.

Calculations are shown on both a Single(S) and Joint(J) basis.

 

FIRST TIME BUYERS

Deposit x inc - S x inc - J
10 % 3.50 2.75
15 % 4.00 3.00
25 % as above as above

 

MOVERS

Deposit x inc - S x inc - J
10 % 3.50 2.75
15 % 4.00 3.00
25 % as above as above

 

SELF CERTIFICATION OF INCOME

Deposit x inc - S x inc - J
25 % 3.25 2.75
40 % 3.50 3.00

 

How Much Will Your Mortgage Cost?

 

Amount Borrowed : £5,000

Rate %
5.00
20.83
29.23
5.50
22.92
30.70
6.00
25.00
32.22
6.50
27.08
33.76
7.00
29.17
35.34
7.50
31.25
36.95
8.00
33.33
38.59


Amount Borrowed : £25,000

Rate %
5.00
104.17
146.15
5.50
114.58
153.52
6.00
125.00
161.08
6.50
135.42
168.80
7.00
145.83
176.69
7.50
156.25
184.75
8.00
166.67
192.95


Amount Borrowed : £50,000

Rate %
5.00
208.33
292.33
5.50
229.17
307.04
6.00
250.00
322.15
6.50
270.83
337.60
7.00
291.67
353.39
7.50
312.50
369.50
8.00
333.33
385.91


Amount Borrowed : £100,000

Rate %
5.00
416.67
584.59
5.50
458.33
614.09
6.00
500.00
644.30
6.50
541.67
675.21
7.00
583.33
706.78
7.50
625.00
738.99
8.00
666.67
771.82

Notes:
1.Amounts in green immediately above are for interest only mortgages; those in black are for capital repayment mortgages.
2. The figures and comments in both tables are for general guidance only and do not constitute advice. You are advised to discuss your individual requirements with an independent financial adviser.
3. These figures are based on a mortgage term of 25 years.

All loans are subject to status. Your home may be repossessed if you do not keep up repayments on your mortgage

In recent times many lenders have abandoned the income multiple system in favor of basing the amount they will lend on a combination of affordability, credit score and amount of deposit.


econveyancer

 
 

Protect Your Mortgage Payments

 

Melwoods Chartered Certified Accountants

   

2009
CCBA
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