Mortgages - How much can I borrow?

by Aaron Strutt

May 05 2016

It can be a tricky process working out how exactly how much you can borrow for a mortgage.

Banks and building societies use income multiples and affordability calculators to determine maximum loan sizes, but they use a range of calculations. They typically reduce mortgages by taking different debts and credit commitments into consideration.

Some mortgage lenders reduce the maximum loan sizes by a larger margin when borrowers have children or pay school fees, or have credit cards and loans. They also amend income multiples for first-time and next-time buyers.

Trinity Financial recently conducted research to assess the lenders and work out the size of the mortgage they will provide. The results below are based on a couple with a 10% deposit buying their first property, both aged 30, with a joint salary of £75,000.

*Figures calculated assuming the borrowers have a good credit score, no dependants and £100 monthly credit card repayments. Please note, mortgage lenders regularly adjust their affordability calculations.

Comment

Aaron Strutt, product manager at Trinity Financial, says: “If you were to ask each high street lender how much you could borrow, you would probably get a different amount from each provider. The rates will almost certainly change and sometimes significantly. 

“The market is arguably more complicated than it has even been and some of the lenders offer much more generous loan sizes than others. Barclays is offering some of the most generous multiples in the market at 5.5 times salary for wealthier borrowers.”

For help to secure a more generous mortgage call Trinity on 020 7016 0790.