The first step to take when you are re-mortgaging or buying a new home is to find out how much you can borrow.
Although lending criteria varies hugely among lenders, most will consider two main factors initially; your income and the deposit. The lower the deposit, the less you will be able to borrow, and you may even struggle to obtain a mortgage. If you can save a higher deposit, you are more likely to be accepted for a mortgage and will have access to lower mortgage deals.
Lenders also look at your income and your outgoings. Existing borrowing levels will also be looked at, so try to pay off any debts before applying for a mortgage. The number of children you have will also impact on your mortgage application, as you are financially responsible for them.
Once a lender has calculated your income and expenditure, they will decide how much they will lend you, based on affordability. However, the amounts a lender is willing to lend may still differ greatly, as some lenders have more generous criteria than others.
The amount a buyer can borrow will vary greatly, by thousands in some cases, between lenders. This can make a huge difference when a buyer is looking for properties, as one lender may approve sufficient funds whereas another may not be willing to lend the required amount.
Mortgage advisers are CeMAP qualified and have knowledge of lending criteria, which means they can help you approach the most suitable lender for your circumstances.
