If you’re thinking about buying a home, one of the first things you’ll want to work out is your budget. And if you’re buying with a mortgage, you’ll also want to work out how much you’ll feel comfortable repaying on a loan each month.
But your sums might not always match up with how much a lender will lend to you. This is because lenders have their own processes in place to determine your affordability.
Different lenders have their own policies around this, and the framework they work within is set by a regulator – in this instance, the Financial Conduct Authority. This is to ensure that the individual circumstance of every applicant is taken into account when determining if a mortgage repayment is affordable now, and will continue to be if things change, for example, if interest rates rise.
Figuring out how much you can borrow from a lender isn’t easy. Using tools like a Mortgage in Principle to get a personalised decision based on your individual circumstances is a really great way to get an answer. But you still may not fully understand how the lender came to their decision. This can be frustrating and confusing, as the amount may be very different to what you’re expecting and could be less than you’re already paying on rent or your current mortgage.
It’s really helpful to understand how lenders assess affordability before you apply for a mortgage loan, and the impact that things like existing credit payments will have on how much you can borrow.
LASTRA Property Group mortgage advisors will endeavour to help you find a competitive mortgage rate, monthly payment and insurance quote tailored to you and your family lifestyle.
Please email info@lastrapropertygroup.com or telephone 0208 050 7271 for further information.
LASTRA Property Group will ensure that you choose the best mortgage lender for your specific situation.
Our experienced team of mortgage advisors are part of a larger network. They have access to exclusive mortgage rates and competitive deals which are not normally available direct from lenders on the High Street.
Services Include:
For further information or a no obligation chat with a experienced mortgage advisor, please contact lastrapropertygroup@outlook.com or telephone 0208 050 7271
* Your home may be repossessed if you do not keep up with payments on your mortgage.
A broker fee of £299 will be charged upon completion of your mortgage.