Even though property may still be seen as a gamble, most people will make money on their home in the long term. However, it can be dangerous to borrow too much. No matter how attractive owning rather than renting a property is, buyers should beware of becoming financially overstretched. You might consider how your mortgage payments would increase should the base rate rise by using our rate rise calculator. Having said all that, one of the most common uses of this mortgage calculator is to answer the question "how much can I borrow?"
In order to answer that question you must understand that since the Mortgage Market Review (MMR) all lenders now use their own affordability calculator and the maximum mortgage amount they will lend varies widely. Lenders now consider many different variables when calculating the total loan they are willing to advance. These include:
the credit rating of you and your partner
the number of children you have
your monthly household costs
your monthly repayments on any loans, finance & credit cards you might have
the Loan to Value of your new property
your total income which can include overtime, bonuses and any extra payments you receive
This means the maximum offered to each client can vary. Our online mortgage borrowing calculator will work out a maximum limit of 5 times a single or joint annual salary but doesn't take into account any of the criteria outlined above.
How can I get a free mortgage quote?
To get your free mortgage quotes, you just need to enter some basic information into our simple form for mortgage advice and your dedicated adviser will search the entire marketplace to find you the best mortgage deals available.