Requirements can vary by lender, but generally, you’ll need to demonstrate a reliable income to assess your borrowing capacity. A good credit history is advantageous, or at least some form of credit rating. Additionally, your deposit amount is a crucial factor.

While this can differ slightly among lenders, a common guideline is that you can borrow approximately 4.5 times your income. If you’re purchasing alone, this calculation is based solely on your income; if buying with a partner, it’s based on your combined income. This is a general estimate, as lenders will also consider any existing loans, credit cards, or other financial commitments. Overall, it’s typically around 4.5 times your household income.

The amount you can borrow through a mortgage typically depends on:-

The price of the property you wish to purchase

– The size of your deposit
– Your income and financial capacity
– The specific criteria set by your lender

When you take out a new mortgage, you may incur various fees, including:-

Valuation fees: Charged by the lender to conduct a valuation of the property you’re purchasing.
Solicitor fees: Fees from your solicitor or conveyancer for the legal work required to finalize your sale or purchase.
Stamp duty: If you’re buying a property that costs over £125,000, you may need to pay stamp duty land tax, unless you are a first-time buyer.
Arrangement fees: Your mortgage lender may impose a fee for arranging your mortgage. This fee can sometimes be added to the loan amount, but doing so increases the total amount you’ll repay.
Booking fees: Some lenders charge a booking fee to reserve the funds for your mortgage.
Broker Fee: Fee that you pay to your mortgage broker to arrange you the mortgage.