HOW MUCH MORTGAGE CAN I BORROW ?
A mortgage generally depends on the profile of a person and by profile, we mean that the lender would scrutinize each and everything about you; i.e., not just a single aspect would decide on how much mortgage can you get but all. If you’re looking for a mortgage for instance on your salary, then you need to understand that the lender in the United Kingdom (UK) would see through all your spheres which are as follows:
• Gross Earnings/Remuneration
• Consumption and other bills
• Savings and Deposits
• Debt and Liabilities (if any)
• Type of Employment
• Credit Score and Financial History
How much Mortgage can you get?
The power to decide on the matter of providing the mortgage rests with the lender. It totally depends on the several aspects stated above among which, your gross income, employment type, etc. play an important role. The answer to the most common question: “How much mortgage can I get on my salary” is that it depends on your employment type. For example, it is different for a person working in a job from one who is an entrepreneur. Generally, one can get up to 4.5 times the income he/she is earning. However, this figure can vary and go up to 5 or even 5.5 times, subject to the profile.
Our readers need to understand that there is a difference between how much mortgage can one get and how much mortgage one can actually afford. It is recommended by finance experts that one should go for an amount that is at least 10% less than the total sanctioned amount. It is because a person can then afford his other expenses in a better way. Also, a widely practiced thumb rule says that a person should not spend more than 30% of his income repaying the mortgage.
