How much can I borrow?

My first advice to you is to find out how much you can borrow on a mortgage BEFORE you start looking for your next home.

But how do we work out how much that is?

Online calculators may give you a ball-park figure, but there are too many factors that they don’t take into account.

Together we’ll be looking at your income and bank statements so we can get a clear picture of your financial situation. When I understand how much you spend versus how much you earn, I can begin to work out how much you can afford to borrow.

Different lenders have different criteria, so I don’t like to rely on generic online mortgage calculators. I believe a clear picture, and even a mortgage in principle is far more dependable.

Residential mortgage borrowing vs Buy to Let borrowing

Although in essence, a mortgage is a mortgage, there are slight differences between borrowing for a home to live in and borrowing to buy a house to rent out. There may be a difference between borrowing as a first time buyer and remortgaging too.

Unlike a residential mortgage there are quite a few additional elements to factor into your buy to let mortgage calculator, like how long you borrow the money for or if you are buying as an individual or LTD company.

Check your credit score

Another factor that generic mortgage calculators don’t take into account is your credit score. We recommend Checkmyfile*, a free trial of which allows you greatly improved accuracy of your credit data, and up to 30 days to download your report.

*By clicking the link, you will need to register your details with Checkmyfile and enter into a free 30-day trial period. This will allow enough time for you to register your information and download your report. You are free to cancel this trial period at any time during the 30-day free trial period without penalty. Should you fail or choose not to do so, Checkmyfile will charge you a subscription fee of £14.99 per month thereafter. To get the best from this service, please ensure you register all of your primary and/or associated addresses within the last 6 years. MK Mortgages will receive a payment of £12 per free trial entered into via the link to Checkmyfile’s website. This is payable whether you cancel the trial period or not.

It should be noted that lenders will not be assessing the report produced from Checkmyfile and will undertake their own research and assessment. Neither MK Mortgages nor Quilter Financial Planning are responsible for the accuracy of the information contained within their site. Details of how to unsubscribe or cancel this service, is available directly from the Checkmyfile website under their T&C’s which states “If you wish to cancel your subscription, please log in and send us a Secure Message at any time, email us, or call us on our Freephone telephone number 0800 086 9360 during normal office hours. In all cases we will provide you with a cancellation reference code in confirmation.”

! THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.