How much can I borrow?
Buying a property means you will have to pass both a financial assessment from one of our strategic alliance partners, as well as meeting the lenders’ affordability and lending policies. We are here to offer you one port of call that will help you check your eligibility for your chosen scheme and also your ability to obtain a mortgage.
Mortgage lenders are increasing looking at affordability of the financial commitments you have and are undertaking, rather than multiples of your income. This means that working out what you can borrow as a simple multiple of your income is no longer an accurate guide.
Most lenders now use a system called “Credit Scoring”, which is a sophisticated electronic decisioning system that takes into account factors such as your credit history, your income, job, period of employment, age, loan amount and so on. The system awards a score and this will influence the lender’s decision as to whether or not they are prepared to accept a mortgage application from you. Generally, the better the score you achieve, the higher the loan amount or more favourable terms you are likely to be offered.
To obtain a reliable figure on your borrowing potential, you should seek an agreement in principle from a mortgage company. This is a non-committal assessment made by a lender, which in many instances includes a credit score.
The agreement in principle and credit score will most likely include a credit search with a credit agency, the search is logged on your credit file and too many searches can affect your credit score.
As such, we recommend that you speak to one of our advisors who will guide you on how much you can borrow and also arrange an agreement in principle once you are ready to do so.