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How Much can I Borrow for a Mortgage

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This is an example of how much can i borrow for a mortgage. This document is useful for studying on borrowing for a mortgage.

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Shared by: crisologa lapuz
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How much can I borrow? This varies from lender to lender. As a general rule, high street lenders will lend between 4 and 5 times your single or joint annual income (before tax). The amount of ongoing financial commitments you have (ie personal loans or credit card debt) will also have an impact on the amount you can borrow. It is always important however to make sure that you borrow an amount that you can afford to repay and borrowers must always remember that the cost of a mortgage may increase if interest rates increase. How much deposit do I need? You do not necessarily need a deposit, in fact it is possible to borrow more than just the purchase price of the house. However the more deposit that you do have then the better the rate of the mortgage is likely to be as the lender will perceive the mortgage to be of a lower risk the larger the deposit. We can advise you on all of the 100% mortgages on the market and get the best deal for you. Call us on 01442 822988 for more information on the best 100% mortgages available. As a First Time Buyer can I get a self certification (no proof of income) mortgage? Self cert mortgages are available to first time buyers. Depending on your circumstances you will need to have a minimum of a 5% deposit. How much will Stamp Duty cost me? Stamp Duty costs 1% of the purchase price of the property for properties between £125,001 and £250,000. 3% of the purchase price of properties between £250,001 and £500,000 4% of the purchase price of the property for properties from £500,001 and above. What insurance products will I need to purchase? The mortgage lender will insist that you have buildings insurance in place to cover any potential damage to the property. Although life insurance and income protection/payment protection are not a requirement for most lenders it may be advisable to have some cover in place. Our advisers will be able to give this advice based on your individual circumstances.

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