It all depends on your personal circumstances but it is very important to understand how its worked out.
What you have got saved?
Have you been saving regularly? You have to put down a deposit on any new home which makes the amount you need to borrow less. The more deposit you put down the less interest you have to pay. Most lenders would like a deposit of 15% of the total cost of the house, however there are some lenders who offer 5-10% deposit.
How much can you borrow?
The amount you can borrow all depends on your personal circumstances, whether it’s a single mortgage application or joint with others and how much the lenders decide to lend. Although you are responsible for the repayments the lenders do not want to put you at risk where you will be in a position not to repay the mortgage.
The amount you can borrow will be calculated based on your income or joint income if being purchased with someone else.
What is your credit rating like?
In order to lend responsibly and to decide whether to lend or not the lenders have to carry out an assessment. This is known as ‘credit scoring’. This is done by using all the information provided and mostly on the data supplied by credit reference agencies. Based on your history of borrowing, repaying and other liabilities you may have. A credit score is then generated.
