We calculate this based on a simple income multiple but in reality it s much more complex.
Mortgage borrowing power uk.
This is because you re borrowing over a much longer period of time with a mortgage.
Please see our calculator assumptions for full details.
How much you can borrow for a mortgage in the uk is generally between 3 and 4 5 times your income.
Factors that contribute into the borrowing power calculation.
Figures given by this calculator or the provision of a decision in principle do not constitute an offer to lend to.
See our latest mortgage rates for more detail.
Get a quick and clear picture of what it will take to pay off your mortgage with this accessible mortgage loan calculator template.
Borrowing 5 000 at an interest rate of 3 taken over 20 years would cost you 1 630 88 in interest payments that s just on the extra borrowing.
Mortgage lenders are also restricted in the number of mortgages they can offer over 4 5 times lti due to a regulatory limit.
These covers are designed to offer some financial protection against the unexpected.
This can boost your borrowing power as it makes payments more affordable but bear in mind the longer the mortgage term the more interest you ll pay overall.
For example recently one major lender changed their maximum lti to 4 49 times from 5 5 times which for some buyers could be quite a large difference in borrowing capability.
Applications for finance are subject credit approval.
A typical mortgage term is about 25 years but you can lower your monthly repayments by opting for a longer term most lenders will consider up to 35 years.
How much mortgage can i get.
A maximum of 2 applicants can apply for a new hsbc mortgage.
You could consider taking out life or life and critical illness insurance alongside your mortgage.
Or 4 times your joint income if you re applying for a mortgage with.
Your loved ones would receive a lump sum payment if you died and depending on your cover could receive a lump sum if you were diagnosed with a critical illness.
In most cases income from commissions bonuses overtime tips rental income and child support can all be counted toward your annual income.
We ve used our loan calculator to highlight some examples below.
If you borrow more than 85 of your property value or the purchase price the maximum amount you can borrow would be lower.
Aussie s borrowing power calculator calculates the potential amount you may be able to borrow for a home loan based on a number of factors about the borrower s personal financial situation and a number of assumptions.
