How much should I borrow?
You can typically borrow up to three and-a-half times the main earner’s income before tax, plus one times any second earner’s income, or alternatively two-and-a-half times their joint incomes (if this is larger).
Your lender may only count half of income such as overtime, commission or bonuses unless this is guaranteed. Lenders will reduce the amount they will lend if you have substantial outgoings such as other loan payments.
If you are getting advice, the adviser has a duty to take reasonable steps to ensure that you can afford a mortgage that he recommends. Whether or not you get advice, lenders are required to lend responsibly. This means that they should, based on things like your income, expenditure and other circumstances, consider whether you can keep up the mortgage repayments now and in the future; for example after an initial discount period comes to an end.
How much can I afford?
Why use an APR?
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How long should the mortgage last?
What if I have a poor credit history?
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