Understanding Your Borrowing Capacity for a Mortgage

Mortgage affordability is a common topic of discussion for many of my clients when it comes to buying a home. The question of "How much can I borrow?" is an important one to answer early on in the process. In this video, I'd like to dive a little deeper and explain some of the factors that can impact your borrowing capacity and mortgage affordability.

Dispelling Common Misconceptions: It's a common misconception that if you're currently renting a place and the monthly payments are the same as what they would be on a mortgage, then you'll be able to afford the mortgage. However, this isn't always the case. Lenders use complex calculations and just because you can afford the rental payments doesn't mean they'll allow you to borrow.

Key Factors to Consider: There are a number of factors that can impact your mortgage affordability, such as age, deposit, income, outgoings, and debt to income ratio. In the video, I'll go over each of these factors in more detail and explain how they can impact your borrowing capacity.

Important Reminder: If a lender turns you down for a mortgage, it doesn't mean there aren't other options out there.

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