How Much Can I Borrow?

It is important that you can afford the mortgage both now and in the future. To help you with this, the Society will assess your income and expenditure to check affordability for the new mortgage. We will ask questions about any future anticipated changes to your income and expenditure. To ensure that a mortgage is right for your individual circumstances, the 3 key areas that will be assessed are as follows:

● Proving your income
● Confirming your spending
● Assessing future changes

Income

You will need to provide evidence of your income to show that you can afford your mortgage. If you are employed we will request 3 months’ payslips along with a P60. We may also request an employer’s reference. If the income you are using to cover your mortgage is from more than one job you will need to provide the Society with evidence for each job.

If you are self-employed we will request 2 years accounts and an accountant reference. You will need to inform the Society if you expect either your income to decrease or your outgoings to increase, so that the Society has a clear understanding of how much money would be suitable to lend.

Expenditure

Our advisers will look at what you have coming in and going out on a monthly basis and work out how much you have left over and what mortgage payments you can afford.

This includes expenses for essential items such as:

● Food
● Gas/electric/water
● Telephone
● Council tax
● Insurance

You also need to take into consideration other living costs such as:

● Clothes
● Car/travel costs
● Personal expenditure
● Childcare
● TV licence

It is also important to take into consideration any other financial commitments you have, for example credit card bills, to ensure that you can afford your mortgage. Do not stretch yourself, or take a mortgage that you think you will struggle to repay, because when lenders are assessing the affordability of your mortgage, you would need to prove that you would be able to keep up your payments if interest rates were to rise.

Deposit

You must provide a sufficient deposit to purchase a property. A deposit is a set amount of money that goes towards the property you intend to buy. For example if you want to buy a property for £150,000 and the mortgage requires a 10% deposit you would need £15,000.

Purchases

We will consider mortgages up to 95% of the purchase price or property value (whichever is lower) across England & Wales, subject to the postcode area.

Remortgages

We will consider remortgages up to 90% of the property value, across England & Wales subject to the postcode area.

If you are thinking of applying for a mortgage or remortgage with the Society and would like to know how much you can potentially borrow and what your monthly repayments may be, then try our quick mortgage calculators.
 
 


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