Enter your income and your outgoings – and the mortgage affordability calculator will estimate what you could borrow to buy a property.
Why use the affordability calculator?
It’s a great way to work out how you might need to make adjustments in order to improve your chances of getting a mortgage. You’ll also get an idea of the options available to you.
How does it work?
Simply enter your details and the calculator will do the maths for you in just a matter of seconds. You’ll need to input your:
- Annual income
- Monthly take-home amount
- Any other income you earn
- Monthly household costs
- Credit card loans & payments
- Child & spousal maintenance
- Any fixed costs e.g. school fees
- Estimated living costs
- Entertainment & leisure
- Food & groceries
Once you’ve put in all the necessary details, you’ll be able to find out how much you can afford to borrow. If you don’t have any expenses to put in certain sections, imagine what they’re likely to be in your new home.
If applying with someone else, add their expenditure and earnings to yours.
How accurate is it?
It’s important to remember that the calculator generates estimates based on certain assumptions. It gives you a general indication, not a 100% accurate figure.
However, it can still give you a useful understanding of where you are and how your monthly budget adds up.
When it comes to buying a house, the more you know, the better!
What mortgage can I afford?
When you apply for a mortgage, the lender will need to assess risk (when it comes to both you and the property). This means looking at:
- Your income/salary
- Property value
- Any existing debts
- Proof of employment
- Your credit history
How much you can afford to borrow for your new house will depend on what they find during their assessment and the valuation survey.
How to improve your chances of getting a mortgage
Of course, getting an understanding of your mortgage loan affordability isn’t all you need. You need to consider the lender’s position and whether you’re a good candidate for a loan.
- Check your credit score to see if you appear reliable
- Get a good understanding of your incomings and outgoings
- Save a deposit as high as possible, this will give you more options when it comes to mortgage plans and interest rates
- Speak to more than one lender
- Get a mortgage in principle (but remember this is not legally binding)
- Get your head around mortgage interest rates
Remember, if your mortgage is declined, your dream home isn’t out of your grasp. One lender’s opinion doesn’t apply to everyone.
Need a mortgage quote?
If you’re ready to take the next step to buying a house, we can help. We have a panel of professional, independent mortgage advisers at your disposal. Why not use this to your advantage?
Get a mortgage quote online in a matter of seconds below!