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20 Dec 2014

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  1. Mortgage Income Multiplier
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How Much Can I Borrow?

How Much Can I Borrow on a Mortgage?

How much can I borrow on a mortgage is one of the first things to think about when buying or moving home.

The amount you can borrow on a mortgage will depend on your income and whether you want to buy the property on your own or with someone else.

The exact amount will depend on your individual circumstances, but these guidelines will give you a good idea how to calculate the income a mortgage lender will use before using income multipliers or affordability calculators.

The Two Ways to calculate how much you can borrow

It would be simple if all mortgage lenders calculate how much you could borrow in the same way however this is not the case.  Go Direct can help – we have removed the confusion, simply click on either income multipliers or affordability calculator and read the basics of each type to see how much you can borrow.


What Income is Used?

How much you earn

For employed people this is based on all of your annual basic salary. Mortgage lenders will then look at your additional income, overtime, commission, bonuses and second jobs. These are all taken into consideration, however not all mortgage lenders will take 100% of this income. You may also be in receipt of maintenance payments, tax credits and have other regularly monthly income that may be taken into account as your annual income by some mortgage lenders. If you have any income other than basic salary that you need to take into consideration it would be advisable to discuss this with a mortgage advisor.

If you are self-employed the amount of mortgage you can borrow is based on your business accounts and will probably be calculated using your net taxable income. Many mortgage lenders require at least 2 years of accounts to assess your net income if this is not available than a self certified mortgage may be right for you.

The overall cost for comparison is 4.1% APR. The actual rate available will depend upon your circumstances. Please ask for a personalised illustration. Rate correct as of 13/03/2014

Your commitments

Before a Mortgage Lender applies it’s lending income multiple to your earnings to calculate how much you can borrow it will ask about your financial commitments. Typically any regular credit commitments which have 6 months or more to run will be deducted as an annual payment from your gross income before the mortgage lender uses their income multiples to calculate how much you can borrow.

Mortgage Budget Planner

Try Go Direct's mortgage budget planer to calculate how much you can afford for your new mortgage

Still Confused?

How much can I borrow? If you're still not sure we have dedicated mortgage advisors to help you find out how much you can borrow on a new mortgage.


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We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500



Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however a fee paying option is available. Our typical fee would be £500

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