Mortgage Questions
common questions & answers
 How
much can I borrow?
It is important to understand that the amount that you can afford to
borrow is not the same thing as how much someone is prepared to lend you.
Lenders use income multiples as a guide for how much they are prepared
to lend you.
If the mortgage is to be in one name, the multiple is usually 3.5 times
your annual salary. For joint applications most lenders will either lend
2.5 times the combined salaries of both applicants, or 3 times the salary
of the main application plus the annual salary of the second applicant.
These multiples are used as a guide for the lenders, but may not reflect
how much you can actually afford to repay. It is important to check that
you can afford repayments in addition to your usual regular outgoings.
Our Mortgage calculator can help you calculate what your payments are
likely to be.
Over
what period can I have my mortgage?
Mortgages can run over a variety of time periods, although 25 years is
the most common. Remember : The longer the term of your mortgage, the
lower your payments are likely to be, but you will pay back more in total
due to interest.
What
if I get into difficulties?
As mortgages run over extended time periods it is possible that your
circumstances will change during the term of the mortgage. Most lenders
are sympathetic to this and have options available to help those experiencing
problems. It is also strongly recommended that you take out Mortgage Protection
Insurance. Mortgage protection insurance enables you to keep up with your
mortgage payments in the event of accident, illness or redundancy.
Who
should I get my mortgage from?
There are a large number of companies including Banks, Building Societies
and specialist lenders who will be happy to give you a quote for your
mortgage, but the ultimate choice is up to you. You do not have to take
your mortgage out with your usual bank, and you may well find a better
deal by looking elsewhere. See our Mortgage Lenders resource page for
a collection of lenders who will accept applications online.
Updating
income multiples
If the mortgage is to be in one name, the multiple is usually 5 times
your annual salary. For joint applications most lenders will either lend
4 times the combined salaries of both applicants, or 5 times the salary
of the main application plus the annual salary of the second applicant.
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