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Your Expert Guide to Remortgaging

Whole of Market Mortgage Advice Right at Your Fingertips

Read our articles for a wealth of mortgage advice straight from our experts. Wherever you are on the property ladder, we understand that you’ll have plenty of questions about how the mortgage process works and which loan is right for your circumstances right now. For all your questions, big and small, refer to our comprehensive mortgage advice to get the information you’re looking for.

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Posted On: August 4, 2021
Updated On: August 9, 2022

How Much Can You Borrow For a Mortgage?

The best way to know how much you can borrow for a mortgage is to speak to a mortgage advisor.

The truth is there is no simple way to answer this question as lenders use lots of information to determine how much they think you could comfortably afford and be likely to pay back.

In this guide, we’re going to talk you through the key factors that brokers and lenders use to determine how much you can borrow for a mortgage.

This will help prepare you for those important appointments with your mortgage broker and help your sessions be more productive.

When it comes to calculating how much you can borrow for a mortgage, there is no simple answer. But understanding what makes a lender view you more favourably can be a good indicator of whether you are likely to secure a larger loan or not.

Key factors that affect how much you can borrow for a mortgage:


  • The value of your current property (assuming you have one)

If you’re looking to sell and buy, if the value of your current property exceeds what you are hoping to purchase then that will help free up some cash towards the mortgage for your new home.

  • The value of the property you want to buy

The value of the property you want to buy will be an enormous consideration.

You should get professional advice or even a mortgage agreed in principle before going ahead with your property search in order to avoid disappointment. You don’t want to get your heart set on a dream home to find that the mortgage lender has declined your application due to the property being out of your financial reach.

  • Your income

Your income and that of any house buying partner will be a vital consideration when it comes to deciding how much you can borrow for a mortgage.

It’s not just about how much you’re earning. Lenders will also consider how stable your income is. This is why self-employed or freelance workers can sometimes find it more difficult to secure a mortgage – they certainly have to provide more financial history than someone who is in permanent employment.

  • Your savings

Your savings will be yet another mortgage affordability consideration. If you have lots of money saved in the bank and don’t have wild spending habits, this should certainly work in your favour.

  • Your credit score

Your credit score is an important factor as this illustrates how responsible you are with money.

If your credit score is bad and littered with red flags, your broker should be able to talk you through these to get you back on track.

  • Your spending habits

Everything from pension contributions and monthly direct debits to shopping habits and utility bills will be taken into consideration when deciding how much you can afford to pay on your mortgage.

Lenders will weigh up your spending habits against your income. If you tend to spend a high percentage of your income, or even sometimes spend more cash than you bring in, your broker may encourage you to cut down on spending in order to help open up more mortgage options.

  • Expenses of buying a property

Buying a house includes many expenses. From saving enough for a deposit to factoring in legal fees and estate agent fees if you’re selling, all these costs will be collated and factored into your overall mortgage affordability plan.

  • Interest rates

Advisors may also closely monitor interest rates and forecasts to predict whether a tracker rate or fixed rate mortgage would be more suitable or affordable. Also, if your mortgage is interest-only this will be a vital factor when it comes to determining whether you can afford your monthly payments.

How to find out how much you can borrow?

Working out how much you can borrow for a mortgage involves a lot of detailed information about your finances, credit history, lifestyle and interest rates. Mortgage brokers can walk you through the process and break-down their calculation. They will then be able to search the market with a fine tooth comb to find deals that are a perfect match for your affordability and eligibility.

If you’re looking for a mortgage broker located in Peterborough, Agentis can help. We’ve helped many homebuyers calculate how much they can borrow and secure a great mortgage for their circumstances. Contact us today to arrange your free, initial consultation.