How much can I borrow?

• You can usually borrow up to 3 times your income, or 2.5 times joint incomes.
• You will usually need to provide proof of your earnings.
• Be honest with yourself be sure you can afford the repayments.
• If you enter into the mortgage with a joint borrower, you must be aware that you are both individually responsible for the whole amount of the mortgage.

Before getting a mortgage
Before taking out any mortgage you need to be sure that you can afford the payments and associated costs. Lenders will usually base their calculations on guaranteed earnings such as basic pay, but most will also consider any regular overtime or bonuses (usually at a reduced rate).

Work out how much you can borrow and what sort of deposit you can afford, then ask a lender to give you a 'decision in principle'.

A decision in principle shows that the lender is prepared to lend you an agreed amount of money, depending on satisfactory references and valuation. Some lenders may be more flexible if you are able to put down a bigger deposit.

The deposit

Most lenders are happy to consider lending 90 to 95% of the purchase price. Some lenders will even give a 100% mortgage. which means you can borrow the full value of your home. 100% mortgages can be helpful if you are a first time buyer, and may otherwise have to save for several years to build up the money for a deposit. They can also be helpful for second time buyers who may be able to accept a lower offer for their property because they won't have to find a deposit for their new home.

Second time round, you may find the deposit can come from the Profit you've made on your first property.

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