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COMMENT
WHAT LEVEL
OF MORTGAGE
CAN I AFFORD?
Before you start looking for your first, or next, property, it is important to
understand what you can aord to buy, and what the lenders will allow you to
borrow. is can impact the size of home you can buy, the location and what is
attainable for you as a solo buyer or with a partner. mortgage lenders won’t lend
you more than they deem to be a sustainable amount to repay, so before you
start looking it’s important to find out – what level of mortgage can i aord?
nless you can aord to buy a
property outright, your property
purchase will most likely be
made up of a deposit, which
you provide, and a mortgage meaning you need to borrow
money from a mortgage provider.
There are mortgage calculators online
that many use as a guideline, but these
simple tools don’t take into account other
factors which may impact the lending
amount, including any other nancial
commitments, dependants and lifestyle. A
mortgage expert can help you gain an
accurate understanding of how much you
can borrow, which ultimately can save a
lot of time and heartache of falling in love
with a house that you can’t aord.
There are certain questions which you will
be asked when applying for a mortgage.
Importantly, will you be a solo purchaser,
or purchasing with a partner. You will then
be asked to provide your income and the
income of the person you are buying with.
As a rough guideline, lenders will oer
you between three and four-and-a-half
times your solo income or the combined
income of the buyers.
This may seem simple, however this
isn’t a true reection of what you will be
oered. Lenders will ask you in depth
questions about your spending habits as
part of an aordability assessment,
including inspecting ocial bank
statements and payslips. Details taken
into consideration could include food,
leisure, transport and shopping.
Other questions may include your
current and previous nancial
u
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commitments and debts including student
loans and credit card bills. These gures
could be subtracted from the initial
amount which may be supplied to you by
the standard ‘mortgage calculator’
lending suggestion.
There are certain nancial adjustments
you could make in preparation of your
mortgage application, including ensuring
your outgoing costs are as low as possible
in the leadup. You could review and
reduce your bills, switching to cheaper
taris and packages and cancelling any
subscriptions that aren’t necessary. Other
changes could involve cutting down on
needless spending by giving up the
morning coee on the commute to work,
preparing your own lunch instead of
buying it everyday or taking cheaper
transport alternatives.
The advice which a dedicated
mortgage adviser provides could prove to
be worth thousands of pounds over the
term of a person’s agreement. Failure to
gain the right advice and as a result
choosing the wrong deal could ultimately
damage the possibility of moving up the
property ladder or the amount of equity
which those have within their property.
The Bradley Hall Mortgages team not
only unlocks the best deal for the
consumer, we manage the application
stage on behalf of the client, taking them
through it step-by-step to ensure the
process is as stress-free as possible. We
take all personal information including
credit history, deposit size, preferred
monthly repayments and pair you with a
bespoke solution.
PORTFOLIO MAGAZINE