Mortgages: How much can I afford to borrow and what will my repayments be?

Following the Mortgage Market Review in April 2014 new rules around assessing affordability came into force.

These new rules mean that lending amounts are now based on client affordability rather than income multiples.

The amount you can borrow takes into consideration all your personal circumstances including:

• Your number of dependents
• Student loads
• Other committed monthly outgoings e.g. gym membership, tuition fees, phone bill

The majority of lenders have their own ‘Affordability Calculator’ which is applied to all applications and takes into account data from the Office of National Statistics on spending habits.

Mortgage repayments from person to person, and are determined on a number of factors, namely:

• The amount borrowed
• The interest rate charged
• The product selected
• The term of the mortgage product
• The deposit/gift money available
• The overall term of the mortgage

For more information on mortgages contact an independent financial adviser, such as TMP Sherwins.