What can I afford?
You may already have an indication of the amount
that you can borrow, however, as a general rule most lenders will consider
a mortgage based on a multiple of your salary.
Single applicant = 3.5 x basic earnings
Joint Application = 2.75 x joint earnings
- or -
3.5 x main earnings + 1 x secondary
Depending upon circumstances most lenders would probably consider extending
these multiples of earnings if there is sufficient equity in the property
(i.e. usually if the mortgage is less than 75% of the property value)
as well as the type of occupation you are in. Any recommendations would
be based on affordability. This is based on both income and expenditure.
Your home may be repossessed if you do not keep
up repayments on your mortgage.
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