Can I afford a mortgage?

When you are housing hunting, looking for your dream home, it is ever so easy to get carried away, and before you know it you are forking out thousands of extra pounds in order to get your perfect palace.  It is very important to keep your feet on the ground.  You should know in advance how much you can realistically afford to borrow, and how much your mortgage is going to cost your each month, so this doesn’t happen!

If I can afford a mortgage, how much can I afford?

Lenders often use ‘income multiples’ to work out how much they can actually lend you.  Take this example, they may lend up to 4.25 times the first income plus once the second income.  You should never take these estimates seriously, and you should never take out a maximum loan offered unless you have figured out whether you can afford the repayments.