Mortgage affordability calculator

Mortgage affordability assessments are largely based on your annual income and monthly outgoings, but specific criteria will vary depending on your lender.

As well as your incomings and outgoings, there are a number of other factors that may impact the amount you’re able to borrow. These factors include your employment status (for example, if you’re self-employed), the number of dependants you have and your credit score.

Your credit score is based on various factors, including your debt levels and your bill repayment history. The healthier your score, the more likely you are to be approved for a mortgage. So, it’s usually a good idea to clear any outstanding debts you have before applying.

One way you might be able to increase the amount you’re able to borrow is by making sure your credit rating is as strong as it can be. There are a number of things you can do that may help to increase your score, including registering for the electoral roll, taking out contracts in your own name (for example, a mobile phone contract) and clearing any debt you have.

Clearing any outstanding debt is also important when it comes to boosting your borrowing power. When assessing your mortgage application, your lender will need to know how much money you already owe (for example, amounts owed on credit cards or other loans). Generally speaking, the more debt you have, the less you'll be able to borrow.

When it comes to finding the right mortgage deal, it’s important to shop around. Getting advice from a Specialist Mortgage Adviser can take the stress out of your search, helping you to find the right deal for your circumstances.

As part of your mortgage application, your lender will use your incomings and outgoings to calculate the maximum amount you can borrow for your property. While it can be tempting to borrow the full amount from your lender, it’s important to consider your other financial commitments.

Borrowing the maximum amount will mean that your monthly repayments will be higher, so it’s a good idea to think about what your financial situation might look like throughout the duration of your loan. For example, there may be circumstances that affect your ability to make your repayments, such as a change in employment or starting a family.

Remember too that your monthly mortgage payment won’t be the only outgoing you will have as a homeowner. Once you own a property, there will be other bills to consider, such as home insurance, council tax and maintenance costs.