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The amount that a lender will agree to lend you is based on your
income, deposit, credit history, affordability and several other
factors. Each lender varies as to the criteria they apply and
therefore the amount they will lend to you.
The table below is a rough guide only as to how much you might
be able to borrow. It gives you a guide to the amount you could
borrow as a multiple of your income (e.g. a first time buyer with
a 10 % deposit is likely to be able to borrow a sum equal to their
annual income multiplied by 3.5).
Usually you can include as part of your income 100% of a guaranteed
bonus/over-time and 50% of a bonus/regular over-time that is not
guaranteed.
Calculations are shown on both a Single(S) and Joint(J) basis.
FIRST TIME BUYERS
| Deposit |
x inc - S |
x inc - J |
| 10 % |
3.50 |
2.75 |
| 15 % |
4.00 |
3.00 |
| 25 % |
as above |
as above |
MOVERS
| Deposit |
x inc - S |
x inc - J |
| 10 % |
3.50 |
2.75 |
| 15 % |
4.00 |
3.00 |
| 25 % |
as above |
as above |
SELF CERTIFICATION
OF INCOME
| Deposit |
x inc - S |
x inc - J |
| 25 % |
3.25 |
2.75 |
| 40 % |
3.50 |
3.00 |
How Much Will Your Mortgage
Cost?
Amount Borrowed :
£5,000
|
Rate %
|
|
|
|
5.00
|
20.83
|
29.23
|
|
5.50
|
22.92
|
30.70
|
|
6.00
|
25.00
|
32.22
|
|
6.50
|
27.08
|
33.76
|
|
7.00
|
29.17
|
35.34
|
|
7.50
|
31.25
|
36.95
|
|
8.00
|
33.33
|
38.59
|
Amount Borrowed : £25,000
|
Rate %
|
|
|
|
5.00
|
104.17
|
146.15
|
|
5.50
|
114.58
|
153.52
|
|
6.00
|
125.00
|
161.08
|
|
6.50
|
135.42
|
168.80
|
|
7.00
|
145.83
|
176.69
|
|
7.50
|
156.25
|
184.75
|
|
8.00
|
166.67
|
192.95
|
Amount Borrowed : £50,000
|
Rate %
|
|
|
|
5.00
|
208.33
|
292.33
|
|
5.50
|
229.17
|
307.04
|
|
6.00
|
250.00
|
322.15
|
|
6.50
|
270.83
|
337.60
|
|
7.00
|
291.67
|
353.39
|
|
7.50
|
312.50
|
369.50
|
|
8.00
|
333.33
|
385.91
|
Amount Borrowed : £100,000
|
Rate %
|
|
|
|
5.00
|
416.67
|
584.59
|
|
5.50
|
458.33
|
614.09
|
|
6.00
|
500.00
|
644.30
|
|
6.50
|
541.67
|
675.21
|
|
7.00
|
583.33
|
706.78
|
|
7.50
|
625.00
|
738.99
|
|
8.00
|
666.67
|
771.82
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Notes:
1.Amounts in green immediately above are for interest only mortgages;
those in black are for capital repayment mortgages.
2. The figures and comments in both tables are for general guidance
only and do not constitute advice. You are advised to discuss
your individual requirements with an independent financial adviser.
3. These figures are based on a mortgage term of 25 years.
All loans are subject to status. Your home
may be repossessed if you do not keep up repayments on your mortgage
In recent times many lenders have abandoned
the income multiple system in favor of basing the amount they
will lend on a combination of affordability, credit score and
amount of deposit.
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