How Much Can I Borrow?

Onwards_and_upwards

We have a combine salary of £110K, and were offered a max of £360K, due to existing credit commitments (2 cars and bank loan). So just a little over 3x combined salaries.

kingstreet

Things that reduce what your maximum mortgage will be;-

income - less of variable income (OT, bonus etc) is allowed than basic
number of years of mortgage term
credit card debt
overdraft
loan
hire purchase
car lease/PCP
student loan
employer loan for eg travel season ticket
ground rent &/or service charges
dependent children
childcare
school fees
maintenance payment to previous partner
dependent adults
shared ownership rent
notional cost of shared equity (eg HTB equity loan)
retained/second property.

Katie-Jane

Thanks for the advice

When we see a mortgage broker we are hoping to not have any debts/loans/credit cards/hire purchases etc, and we don't have any children or dependents so hopefully we will be offered the amount we are looking for.

I'm sorry; another question as we are new to all this. At what point is it a good idea to see a mortgage broker? When you begin saving? Or when you've saved a deposit? I guess that they only offer you something based of your circumstances at that exact moment so if we see them when we don't have much in terms of savings we won't be offered a lot? It would just be nice to have a rough idea of what we will be offered and then we can bear in mind the sort of property we can afford and how much deposit we will need.

Thanks again :j

kingstreet

Make contact now, outline your plans and a broker will roadmap/timetable the way they would like you do work with them.

We're all different.