What mortgage can I afford?

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					                             Independent Mortgage Broker




    What mortgage can I afford?
One of the questions I am asked time and time again from
would be homeowners and property investors is ‘What
mortgage can I afford?’

My response is always ‘How much can you afford to spend on a
mortgage each month?’ I believe that as long as you don’t
overstretch yourself and can still afford to live the lifestyle you are
accustomed to, then you can use whatever you have left each
month to pay a mortgage.

When you apply for a mortgage, your chosen Lender will look at
your salary, how much you spend on essentials and also your
circumstances. Lenders will look at your debts and how much you
are paying on credit cards or loans, essentials such as council tax,
utilities and food, and then they will look at luxuries and how much
you spend for enjoyment.

They split these payments into choice and essential payments.
They also take into account how many children you are supporting
and after looking at these factors and working out figures that are
individual to you, they will see what you have left over for a
mortgage payment.
                           Independent Mortgage Broker



   What mortgage can I afford?
When it comes to residential mortgages, you can usually borrow
four times your income – sometimes five.

They will look at your credit file and see how good you are at
meeting repayments for previous mortgages, credit cards, loans
and other financial commitments. They need to see how likely you
are to meet your financial obligations, on time.

If you are looking at buy to let mortgages, this is a different
scenario. They no longer look at your outgoings and choice
payments, it’s more about the rental income versus the mortgage
payments.

They want to see that you have an income in case your property is
empty and the mortgage needs to be paid out of your pocket
rather than the tenants. They usually want to see a salary of at
least £25,000 to cover this.

Obtaining a mortgage for a buy to let property is different to
residential property. It’s all about the value of the property the
loan required and the income that you are likely to receive.

They look at similar properties in the area, and ensure that the
rental income will cover the mortgage payments plus a bit extra.
                            Independent Mortgage Broker



   What mortgage can I afford?
You will need to have enough deposit for both a residential and a
buy to let mortgage, this used to be a small amount but at present
you really need at least 15%, ideally between 25% and 40%.

Remember, the larger the deposit, the better mortgage rate you
can secure.

If you would like advice on buy to let or residential mortgages, and
whether you can afford the repayments based on the projected
rental income, talk to me, Richard Alton at Alton Mortgages.

I am a property investor myself and as I’m a whole of market
independent mortgage broker, can help you find the best deal.

Everyone is different, and every property is different, so it’s
important to get the right advice.

Contact Me
Tel : 01628 56082
eMail enquiries@altonmortgages.co.uk

				
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Description: If you are looking at buy to let mortgages, this is a different scenario. They no longer look at your outgoings and choice payments, it’s more about the rental income versus the mortgage payments. They want to see that you have an income in case your property is empty and the mortgage needs to be paid out of your pocket rather than the tenants. They usually want to see a salary of at least �25,000 to cover this.