As stability of income is the main focus, the length of time you’ve been in your current role can also make a difference to both employed and self-employed applicants. Income type and Employment status – Some lenders view certain types of self-employed income as a higher risk, which can mean fewer mortgage products to choose from.We can help you find a lender who’s more lenient on debt and affordability, and could still secure a mortgage approval. But that’s where we can help! With so much of your monthly income going towards debt repayments, you could struggle to get approved for a mortgage without the help of a mortgage broker. Most mortgage lenders will class your debt-to-income ratio as high. You should speak to a mortgage broker before you apply to ensure you’re matched with a lender whose criteria you fit. Some lenders are much more strict than others when it comes to affordability and debt, so it’s important for you to find a lender who’s more lenient. Most mortgage lenders will class your debt-to-income ratio as moderate, which means some of them might view your application with caution. You’re unlikely to be declined for a mortgage based on your outgoings, but speaking to a mortgage broker before applying is still recommended as they can improve your chances of getting the best deal. Good news! Most mortgage lenders will class your debt-to-income ratio as low. Try our debt-to-income calculator below to work out what yours is. They will review your debt-to-income ratio to assess this – this is your income minus your fixed outgoings, so if you have a high salary, but also have large existing financial responsibilities, you may not be able to borrow as much as you think. Debt-to-income ratio – Whilst income is one key factor, overall affordability is what lenders actually use to determine how much you can borrow, which includes all regular outgoings.

To determine the multiple of your salary they’re willing to offer, lenders will typically consider the following factors: If you are applying for a joint mortgage, the lender will take into account the combined salaries of everyone who will be named on the title deeds, and some mortgage providers might let you declare supplemental earnings – such as benefits or freelance work on the side – alongside your main salary. Given that mortgage providers generally let eligible customers borrow between 4.5 and 6 times their annual income, you would need to be earning somewhere in the region of £17,000 and £22,250, although slightly less than this may suffice. Therefore, you should always factor in how any potential future lifestyle changes could impact your ability to comfortably afford the repayments on a £100,000 mortgage. It’s also important to consider from a personal perspective that you’ll be repaying your mortgage for a considerable period of time. We’ll look at this in more detail in the next section. Lenders will look primarily at your annual income and regular outgoings, when calculating how much they are willing to lend.

These things may sound the same, but there can actually be quite a big difference between them. There is also a clear distinction between how much you can borrow and how much you can afford to take out.

$100000 mortgage payment calculator