FTB Mortgage Calculator

[pettyprudence]

Me and DH are looking to get our first mortgage - yipeee!
We are going to speak to his bank (HSBC) and Lloyds TSB (as they have some "Lend a hand" mortgages) but we are a bit confused about how the banks decide how much mortgage you can have?

Some online mortgage calculators multiply your income and some ask how much mortgage you want and tell you what the repayments would be as they base it on affordability? As a rough guide what was your income to mortgage ratio?

We are planning a single applicant mortgage based on DH income, and as of August will have no loans/debts. His credit rating is ok. (I am self employed with a poor credit rating and we are planning on having another DC so want to leave my current income out of the equation).

It really depends on your situation, some lenders will go up to 4.5 times joint income (or higher? Don't know)

The financial services authority has mortgage comparison tables here :

pluto.moneyadviceservice.org.uk/mortgages

You can enter your income, the purchase price and deposit and it will list all available mortgages. You could vary the purchase price to see how much you could potentially borrow (but keep in mind affordability). As the house value to deposit ratio gets worse, the interest rates will get higher.

It is probably worth reading up on mortgages before you go to your banks so you know which questions you want to ask, e.g. Here:

www.moneyadviceservice.org.uk/en/categories/mortgages-and-buying-property

I had a horrible feeling there wouldn't be an easy answer

Affordability plays a big part these days, its no longer multiples of salary. Id suggest you speak to your/a bank about an approval in principle. Its valid for around 3 months and only leaves a footprint on your credit rating, so it wont be affected. With the AIP you'll know what they are prepared to lend you, your repayments, and the level of deposit you need