Check Your Borrowing Amount - Do This Before Applying for a Mortgage

Check to see how much you can borrow before you've started applying for anything can get you in the right position when you come to buy your house. This is something that I've spoken previously about and it's something that I'm getting asked a lot of questions on. So I thought I'd do another episode and another another, yeah, another episode to talk you through.

How it works. Now, the first thing that you can do when you're looking to check your affordability is to check the affordability calculators, and there's lots of them online. There's one on my [email protected]. You can find, even find them when you're searching for houses on things like rightmove, and zr and banks have all got their own online afford.

Calculators. Now, these are great for an indication, but it is just that. It's just an indication as to the borrowing amount because there's lots of complex algorithms that go in to determine how much you can borrow. All depends on the type of income that you've got. So whether you are employed, whether you get bonus, Commission how your overtime is factored in.

If you are on a zero hours contract, if you do a bank shifts as a nurse, if you're self-employed, if you're a limited company owner, that there's an endless list of different bits and pieces of criteria when it comes to affordability. So checking these online calculators. Is, a good starting point, but nothing will replace the need to actually talk to someone.

Talk to your mortgage broker, talk to the bank about your income, especially if it's complex or if you're getting variable pay or if there's anything about your pay that isn't. Standard talk to someone to get your get some guidance on it. Then once you know that what you want to be doing is you want to be planning your buying journey, so you want to be thinking about things like the houses that you're after.

Thinking about things like the monthly payments, what the cost, the total cost of buying that place would be, not just the mortgage payments. Think about things like the council. Gas and electric payments. Is it a standard building? Is the building's insurance going to be fairly cheap? How much is your life cover going to be?

All of these different factors you should be taking into consideration when at the very start. And once you've factored all of those kind of things, and then you've got an understanding of what you want to spend and what your payments will be, you can then move on and get yourself a mortgage in Princip.

And the mortgage and principle is just an indication from a lender that they're going to be able to give you the money that you need to buy your home. It isn't set in stone. It's not binding, it is just in principle. So it's always a good idea that you. At that stage that you're, being as accurate as possible, but yeah, it's a good starting point to see if you're going to get a mortgage.

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