What lenders look at
Your income
Lenders look at your basic income and may consider other income such as overtime, bonuses, commission or self-employed profits. How much of it they count varies between lenders.
Your outgoings and commitments
Loans, credit cards, car finance, childcare and other regular costs reduce what you can afford. Lenders ask about these and often check your bank statements.
Your credit history
Lenders check your credit file. Missed payments or other problems can affect what a lender will offer, or whether it will lend at all.
Your deposit and the property
The size of your deposit compared with the property's value (the loan to value) affects which products are available. Lenders also value the property themselves.
The mortgage term
The length of the mortgage affects your monthly payment. Lenders also consider your age at the end of the term.
Stress tests
Lenders usually check that you could still afford your payments if interest rates went up.
Why figures online can differ
Quick online calculators use simple rules of thumb. A lender's real assessment looks at your full circumstances, so the amount you are offered may be higher or lower. Our mortgage calculator estimates monthly repayments for a loan amount you enter; it does not tell you what a lender will lend.
How to prepare
- Check your credit file and correct any errors
- Make sure you are on the electoral roll
- Gather recent payslips or proof of self-employed income
- Write down your regular monthly outgoings
- Keep your bank statements tidy in the months before you apply
Then speak to us. An adviser can give you a personal view based on your circumstances.
General information, not advice. This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender.