When you take out a mortgage, lenders look at a number of things to work out how much you can borrow. This will include your earnings, outgoings, the property value and your credit history. Some will use a multiple of your salary while others will use an 'affordability' calculator.
Typically you may be able to borrow in the region of 4 times your income however this can only be used as a general guide as some lenders will apply different criteria that could mean you are able to borrow more or less than this depending on your circumstances.
Whatever your circumstances, as independent mortgage consultants Professional Mortgage Services have access to the lending criteria of each lender and we are therefore able to determine which of them is most likely to offer you the best terms based upon your individual needs.
The lender will check your credit history and can ask previous lenders or landlords for references. If your record shows you've had difficulty with loans or rent payments in the past, it may affect how much you can borrow.
The lender will arrange a valuation to check how much the property is worth. Many lenders will offer up to 75% - 80% of the valuation and in certain situations it may be possible to borrow 100% or more. This is called the 'loan to value' or LTV rate.
At Professional Mortgage Services we will review your requirements to establish which lender is offering the best product based upon your individual needs.