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How much can I borrow?

Taking out a mortgage? Make sure that as well as looking at how much you can borrow, you look at how much you can afford to pay. The two are not always the same thing!

How much you can borrow depends on the following:

1. Your income. For a single application, you can normally borrow up to three times your income. If it's a joint application you can usually borrow up to two and a half times your joint income, but sometimes, up to four times one income, plus the second.

2. The value of the property. You can't usually borrow more than the property is worth, and normally you need to put down a deposit of at least five per cent. (No-deposit or 100 per cent mortgages are available - at a price.)

3. How much you can put down as a deposit. The larger the deposit, the more mortgage options you have, and often the lower the mortgage rate you'll get.

4. How much you can afford. You'll need to work out how much you can afford to pay each month. Don't forget extras like electricity, gas, insurance, council tax etc. Our household budgeting calculator may help you.

5. How much a lender will lend you. Certain things affect a lender's decision. These include: a poor credit history (if you've not kept up with loan repayments in the past), your employment history and the property you are wanting to buy.

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