GETTING A MORTGAGE


How much can I borrow?


The amount you will be able to borrow is at the discretion of the lender. As a rule of thumb, the following guidelines apply:

  • If you are buying the property on your own you could borrow 3 to 3.25 times your earnings.
  • If you are buying the property with someone else you could borrow 3 to 3.25 times the main income, plus 1 times the second income, or 2.5 to 2.75 times the total of your joint earnings.

Most mortgages are for up to 95% of the property price, which means you need a cash deposit for the remaining five per cent. 100% mortgages are available, but these are often charged at higher rates of interest (up to 1% more than the best deals), making them uncompetitive. It's cheaper to save for a deposit.