Even though property may still be seen as a gamble, most people will make money on their home in the long term. However, it can be dangerous to borrow too much. No matter how attractive owning rather than renting a property is, buyers should beware of becoming financially overstretched. You might consider how your mortgage payments would increase should the base rate rise by using our rate rise calculator. Having said all that, one of the most common uses of this mortgage calculator is to answer the question "how much can I borrow?"
In order to answer that question you must understand that since the Mortgage Market Review (MMR) all lenders now use their own affordability calculator and the maximum mortgage amount they will lend varies widely. Lenders now consider many different variables when calculating the total loan they are willing to advance. These include:
- the credit rating of you and your partner
- the number of children you have
- your monthly household costs
- your monthly repayments on any loans, finance & credit cards you might have
- the Loan
to Value of your new property
- your total income which can include overtime, bonuses and any extra payments you receive
This means the maximum offered to each client can vary. Our online mortgage borrowing calculator will work out a maximum limit of 5 times a single or joint annual salary but doesn't take into account any of the criteria outlined above.
Your annual income What is your gross annual income?
Your partner's income What is your partner's gross annual income?
The results of your calculationsBased on the information you have given us about your annual income, you could borrow between a lower amount of and an upper amount of. Attention - the results provided by this calculator are for illustrative purposes only and should only be used as a guide. This information does not contain all of the details you need to choose a mortgage. Make sure you read the separate Key Facts Illustration before you choose a mortgage. For mortgage advice we recommend you speak to an independent mortgage broker.