How much can I borrow on a mortgage?

A reader from Kent is planning to buy and wants to know how big a mortgage she can get on her income.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem and what it means to her finances.

Christine from Pembury asks:

I am 50 and need a 15 to 20-year repayment mortgage.

I earn £30.000pa and I can put down a deposit of £20,000.

How much can I borrow?

Tony replies:

How long a piece of string do I need?

I am afraid without knowing much more about your circumstances I cannot give you accurate advice or guidance.

Most lending is now assessed on 'affordability' meaning that traditional multiples of income do not apply. Each lender differs in its affordability calculations to the extent that there are lenders that would consider lending up to an equivalent of 6 times salary based on a strong affordability pass.

Certainly, with only a 15 to 20 year repayment mortgage your monthly cost will be higher as you repaying the debt over a shorter term as such your level of borrowing is likely to be affected.

I would suggest that you take the time to meet with a whole of market mortgage advisor who will be able to give you reliable guidance following a factfind and financial meeting.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.