The amount that you can borrow from lender will depends on your cash flow; you income and expenses and on property you are buying. After examining your financial stability your lender will decide the amount they can lend you which will be sufficient for the purchase of your home.


You will be required to submit your pay slips and bank statements to ensure that you are financially stable and afford the mortgage. Your mortgage plan will also be decided in accordance with your income.


It is very important to discuss your expenses with your lender. Because even though two people are earning same amount of money they may have different expenses.  Therefore it is important to inform your lender about your financial commitments and how future rise in interest rate can affect your expenses or mortgage installments.

At this point again you’ll be asked to submit your slips because a mortgage plan cannot be decided until it will be made sure that you can afford it and your expenses will not affect your installments in any way.

Credit History

Another important point that should be kept in mind is your credit record.  Lenders especially banks and financial firms would like to examine your previous credit record and they might pass your record to credit reference agencies. This will include your credit record, past repayments etc. Almost all lending companies use this information to check your status to make sure that you are capable of managing the mortgage.

Property Value

When you apply for the amount of money you want to borrow will be compared with the value of your home you own, this is known as loan to value ratio. This ratio is one of the important factors your lender will consider when considering your mortgage plan. Smaller the ratio, lower the interest rate. Therefore it is important to go for moderate amount of mortgage.

You should also note that some lenders have different lending limits for new-build properties. Therefore the maximum loan to value percentage on a newly built home may be lower. In other words, if you’re considering a new-build home, you may have to come up with a bigger deposit.

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