Mortgage Questions

Frequently asked mortgage questions and answers . . .

How large a mortgage can I have?

Three factors determine the size of mortgage you can have:

• The deposit you pay on the house: a lender would usually expect you to put down at least 5% of the purchase price of the house, though some lenders will consider a 100% mortgage

• Your salary: generally, you can have a mortgage equivalent to 3 times your salary. If you have a joint mortgage, you could apply for 2.5 times your combined salaries, or 3 times the main salary, plus the second salary

• The amount of any existing commitments you have: the amount of personal loans, hire purchase agreements may be deducted from the amount available for you to borrow.

The lender will expect to see proof of your salary and will write to your employer for confirmation. If you include commission or bonuses in your salary amount, the lender would expect confirmation from your employer that these are regular payments. However, if you require a mortgage of less than 75% of the value of the property, the lender may allow you to self-certificate your income.