Before you can start searching for your dream home, you need to know how much you will be able to borrow. Different lenders do so at different rates, and some will offer three times your salary and others offer less. Now that the new affordability regulations have been introduced, it has become even more confusing for potential home buyers.

Rather than struggle to make sense of all the different mortgage products and lending rules, contact a financial adviser for assistance. Generally, the adviser will know the amounts you will be able to borrow, especially if they have received CeMAP training. Some lenders will offer three times the highest salary of a partnership and just one times the lower salary, while others will lend four times the joint salary.

Your deposit will also make a difference to the amount you can borrow. A sizeable deposit can make a huge difference as you are contributing a larger portion of the cost of the property. A large deposit will also give you access to cheaper mortgage products.

When you know what various mortgage companies are willing to lend you, don’t forget to calculate your monthly outgoings so you know that you can afford the repayments. Although interest rates are low at the moment, they could increase at a sharp rate at any time. If you can’t afford the repayments, you could end up losing your home. Speaking to a mortgage adviser and being honest about income and existing commitments will ensure that you borrow the most affordable amount of money.

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