How Much Can I Borrow?

How much you can borrow is dependant on several factors. This is why we carry out an ‘affordability assessment’ with you to make sure we obtain the correct borrowing amount for you.

An affordability assessment includes your employment status and income, any outstanding credit commitments, your age and if you have any dependants along with other factors.

Why your credit score matters

• Mortgage lenders look carefully at how you manage your finances when assessing your mortgage application. If you want to qualify for a competitive mortgage rate, then you need to have a good credit rating. When a potential lender reviews your application, they’ll look at your credit report at one or more of the main credit reference agencies like Experian or Equifax.Mortgage lenders look carefully at how you manage your finances when assessing your mortgage application. If you want to qualify for a competitive mortgage rate, then you need to have a good credit rating. When a potential lender reviews your application, they’ll look at your credit report at one or more of the main credit reference agencies like Experian or Equifax.
• Generally, the higher your credit score, the better your chances of getting a good mortgage product at a lower interest rate.
• Simple steps like paying your utility bills and making existing loan repayments on time, increasing your monthly credit card repayments, registering on the Electoral Roll and not taking on additional borrowing before you make your mortgage application, can help improve your chances of having a good credit score.
• It pays to check your credit score. If it’s not as good as it could be, you can take steps to improve it before you make your mortgage application.

Mortgage in principle

A Mortgage in principle, a decision in principle or a ‘mortgage promise’ is a statement from a lender that shows you they will consider you for a mortgage and how much you can borrow.

Stamp duty

Dependant on your circumstances, you may or not may not have to pay stamp duty. This is based on whether the property is for residential or non-residential use, if you’re a first time-buyer or own other properties. Your mortgage advisor and solicitor can give you more information on any stamp duty charges you may have to pay.

House deposit

A house deposit is an amount of money you pay towards your home, with the rest of the property being funded by a mortgage. The deposit is a percentage of the full cost of the property. The minimum is 5%, but the higher the deposit you put down, the better the mortgage interest rate and the less you have to repay on a mortgage.

Conveyancing

Conveyancing is the process of preparing legal documents for a property sale, remortgage or lease extension, and transferring legal ownership if the property is being sold. If you're buying or selling a home, you'll need a conveyancer or property solicitor to deal with the Land Registry, draw up contracts and transfer the cash.