What Are the Typical Mortgage Affordability Criteria I Need to Know?
UK mortgage lenders all have their own policies and rules, and so the affordability criteria for a mortgage are not universal.
Circumstances that might cause one lender to reject an application automatically will be acceptable to another, although most lenders will review the same factors - with different outcomes.
Here we'll summarise the main criteria that lenders look for when deciding whether to lend - and why it is so important to use an experienced broker before making a tentative application to a lender without knowing their eligibility requirements.
For more information, or for help with a mortgage application whether you have already been turned down elsewhere or are just starting your borrowing search, give us a call on 0330 304 3040, or email the team at [email protected].
What are the Typical Affordability Requirements for a UK Mortgage?
Affordability assessments look at what you earn, and what you spend, for a lender to determine whether they feel comfortable that you can afford to keep up with the repayments on your borrowing.
Generally, lenders start this process by calculating your annual income and applying a multiple to that.
For example, if you earn £25,000 per year, you're likely to be able to borrow somewhere around £100,000 from a lender who caps their mortgages at four times your earnings.
