How Much Can I borrow?
Lenders use different criteria to decide how much
they will lend. This calculator uses the tradional
method; a multiple of income.
The FSA is bringing out new affordability
criteria that lenders will have to adhere to, to
determine how much you may be able to borrow on this
basis we have devised an affordability calculator,
try this as an alternative.
Calculator Tips
You will need to demonstrate to the lender that you
actually earn what you say you earn; i.e. payslips
or last 2-3 years accounts. Self Certification
mortgages (where no proof of income is required) no
longer exist
Guaranteed over time - this means it is written
into your contract (i.e. it is compulsory). In this
instance a lender will take 100% of the OT amount.
If it is not guaranteed then state it under 'Regular
OT'.
If a loan is going to finish before the mortgage
starts then do not include it
Once you have an idea how much you might be able
to borrow, go to our Mortgage Payment Calculator to
get an idea how much the mortgage might costs.
Consider whether you could afford the mortgage if
interest rates increase (assume an interest rate
1-2% higher than current rates.
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Income
Include basic salary if you are employed
along with car allowance if applicable.
If you are self employed, average your last
3 years net profit as declared on your tax
return.
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Overtime \ Bonus guaranteed
Include monthly overtime and bonuses that
form part of your employment contract -
in other words, they are guaranteed .
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Overtime \ Bonus regular
This is OT and bonuses that you get from
time to time but do not form part of your
contract, in other words you are not guaranteed
to received them.
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Credit Card Balances
Balances that you do not pay off every month.
You must also include balances on credit
cards that attract no interest.
You can exclude anything you intend to pay
off before the mortgage commences
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Loan Repayments
You should include the total of all monthly
payments to personal loans, hire purchase,
car loans, catalogues, etc.
You can exclude anything you intend to pay
off before the mortgage commences
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