Spellman Financial Services

How much can i borrow?

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how much can i borrow?

How is it calculated

How much you are able to borrow is based on something called an affordability calculation.

Each Mortgage Lender has there own way of calculating this.

But essentially, the Lender looks at your income and your outgoings including things like Credit Card Balances, monthly Loan Payments and Childcare costs.

And based on this will formulate a calculation on the maximum they are willing to lend to you.

Each Lender will usually return a different maximum lending figure when compared to one another on the same customer case, see more here.

What affects how much you are able to borrow?

There a quite a few different things which will affect what you are able to borrow.

Your income and outgoings are of course the main determining factor.

But other lesser known factors include; what percentage of deposit you have, what term you have the Mortgage over, what initial fixed rate you take out.

Income multiples/caps

Mortgage Lenders used to lend applicants 4 – 5 times their earnings. Now it’s considered to be more like a cap as your maximum borrowings are based on a number of factors (listed above).

To give a rough idea on your borrowing capacity. Times your annual gross salary by 4.49. I.e. £30,000 X 4.49 = £134,700.

Of course this isn’t a definitive calculation. As someone with higher outgoings in reality, won’t be able to borrow as much as someone with low/no outgoings.

To get a definitive calculation speak to a Mortgage Broker or a Lender and complete an affordability check with them.

How to boost borrowing

There a few ways you may be able to boost your borrowing capacity.

Consider increasing your deposit, is this is possible of course. Some Lenders will be more inclined to lend higher sums of money to borrowers with a higher deposit. For example 25% or more.

The longer the term, the lower your repayments will be, which can also sometimes increase the amount you are able to borrow.

Consider a longer term fixed rate. Some Lenders will lend more to applicants who take out a fixed interest rate Mortgage of 5 years or more. This is usually down to lenders “stress testing” longer term fixed rates less stringently.

Why use ourselves?

Luke Spellman, the Mortgage Broker you will speak to, has over 10 years experience in Financial Services. 5 of which has been spent working directly with Mortgages.

We are proudly rated 5 stars by our customers on Google, Vouched For & Facebook.

We can provide face to face advice to customers in Coventry & Warwickshire. Or a telephony service if you prefer, for Local or National Customers.

So for simply more information and for a non-obligatory free chat. Please contact us below.


Get in touch

Spellman Financial Services provides Mortgage advice to the people of Coventry & Warwickshire.

If you would like any individual advice or further information on any of the above or alternative Mortgage or Insurance Advice.

Please do get in touch and contact us on the below details, to see how we can save you money on your Mortgage.

Get in touch!

If you need Expert Mortgage Advice. Please complete the below contact form and we will get in touch within one working day.

Please note

The information provided will only be used to contact you and will not be held for marketing purposes.

Address & Telephone

102 Stoney Road, Coventry, CV3 6HY
Telephone: 07739387944

Opening Hours

Monday-Friday: 08:00 – 20:00
Saturday: 08:00 – 14:00
Sunday: By appointment
Other times: can be arranged by appointment

Spellman Financial Services is an Appointed Representative of Openwork Ltd, which is authorised and regulated by the Financial Conduct Authority

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