Lenders apply various criteria to determine the amount they will lend you and various factors are taken into account when they make this decision.

Some lenders work on what is known as an income multiple so they will lend so many times a single income or so many times a joint income, for instance a lender may quote 4 x single income or 3.5 x joint and this will be the main factor in determining the amount they will lend to you.

Some lenders work on what is known as an affordability basis. They literally take your income and deduct any existing financial commitments such as credit card or loan repayments and apply this to an affordability model to determine the amount they will lend to you.

In conjunction with this most lenders will carry out some sort of credit scoring and this basically takes into account various factors regarding your application such as your individual crcumstances to the type and amount of loan you require. For instance the more positive factors that are appled to your application, the better you are likely to score.

The factors that are usually taken into account are credit history, voters roll information, type and time in current employment, amount of deposit to name a few.
This does not however mean that unless there are positive factors in all areas of your applcation that a lender will decline your applcation, it just means that we have to look more closely at each lenders criteria to find a lender that suits your circumstances and needs.

We will also ask you to complete a thorough budget planner detailing your income and expenditure. This will not only help you in understanding all the costs involved to ensure that your new mortgage is affordable but will also demonstrate to us and the lender that affordability as been confirmed.

Bank of England Base Rate is 0.5% (last updated 10/02/11)- next update due 10/03/11

Thank you very much for your great service again!!

Mr M - Orpington

Read more testimonials of what our clients have to say

24th October 2019

d g s mortgage solutions ltd
84 Balham High Road
SW12 9AG

Tel: 0845 3626206
Fax: 0845 3626208