How much can I borrow?

Different lenders will have different ways to calculate how much you can borrow. It pretty much depends on whether you are employed/self-employed/own your own business or maybe you are in receipt of benefits (yes, lenders do consider certain benefits for affordability!). Some lenders do look at just basic salary and others will also consider other income elements like bonus or overtime. Why not try our simple mortgage calculator which can give you a general indication of how much you can borrow?

 

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I want to buy a house – where do I start?

The best way to start is to set up a strategy call with our mortgage experts. There is no better way to prepare for house buying/moving than by talking to a mortgage adviser who will check how much you can borrow and what documents you need to have at the ready. If you are planning to buy your first home, move to a different house or perhaps you are a landlord thinking of buying an investment property, best thing you can do is to have a chat with us.

 

 

What documents are needed for a mortgage application?

Mortgage assessment is a thorough process, so it is great to have all the necessary documents in place to be looked at by the lender. Typical documents you will need to prepare are proof of income (payslips, P60, self-assessments if you are self-employed, tax calculation and tax year overview documents if you own your business), proof of expenditures (bank statements), proof of ID (passport or driving licence), full credit report (to check how lenders may see you when they do their checks). Remember, there is no limit as to what documents and evidence lenders may ask for so be well prepared.

 

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What deposit do I need to buy a house?

In order to get a mortgage, you might need to put forward a % of house value as a deposit.Most house buyers tend to contribute by something around 10% or 15% to have a greater selection of lenders but of course, it is possible to buy a house with as little as 5% or no deposit at all! As every case is different, speak to our experts to learn more about what you would need to contribute.

 

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Where do I get my deposit from?

Most customers save up their deposit to buy a house but a deposit can also be gifted too or, alternatively, if you are buying a house from a local authority, the discount that you are entitled to under a Right to Buy or Right to Acquire, can be considered your deposit so no extra contributions may be required. If you have a family member willing to act as your guarantor, you may not need to have a deposit at all. There are so many options that you should definitely speak to an expert to find out more.

 

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Can I still buy a house if my credit score is low?

Simple answer to this is YES! With so many specialist lenders and their different criteria, there are lenders that are more suitable for customers with credit blips. Best to discuss with our mortgage expert.

 

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I am self-employed and I have only been trading for 12 months, can I get a mortgage?

Yes, you can as there are lenders that would consider applicants who have been trading for a shorter period of time than 2 or 3 years, as long as they have their first self-assessment done and it is for the full 12 months. Of course, you would need to meet all the lender’s other criteria, but it is possible to get a mortgage only after 1st year of trading.

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I own my limited company,

what do lenders take as my income?

When you are a company director, even though you may have payslips and P60, these are not the documents lenders want to see for affordability assessment. To calculate your income, some lenders will take your annual salary and dividends as on tax calculation document and some lenders will look at your salary and share of net profit that is on your business accounts. There are even lenders that would look at your firm’s profit before tax! Every lender takes a different approach to limited company directors so best speak to a broker before you do anything else.

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I am a single parent – can I buy a house?

Lenders do not favour families with both parents against single mums or dads. What is more important is your income and expenditures. Even if you only work part-time and some of your income is from benefits or child maintenance payments, you may still be able to buy a house. Speak to us and we will see what is possible for you.

 

 

My salary is not big enough to get a mortgage – can I buy with someone else?

If you earn too little to be able to get a mortgage, someone else’s income could help you apply for the loan and fund your home purchase this way. This is called joint borrower sole proprietor application. Therefore, your mum, dad or a sibling or anyone else, could potentially add their income to the application but you would still be the only owner of the house. Does it sound like something for you? Speak to us!

 

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My fixed deal is expiring soon, when should I contact you to start a re-mortgage?

You may be able to book your next mortgage deal as soon as about 6 months prior to your deal’s expiry date. We will check whether you would be better off switching lenders or perhaps you might benefit from staying with the same one and just renegotiating the terms of your deal. We can help with that!