How Much Can I Afford Borrow?
The first rule of taking out a mortgage is to only borrow what you can comfortably afford to repay each month otherwise you could find yourself overstretched and end up losing your home. Take into consideration all the other costs involved in home ownership such as utility bills, council tax, home insurance and so on.
Upon application for a mortgage, all lenders will want to see proof of your income and expenditure. Anything that does not add up will be queried so make sure you have your facts and figures straight. If you have any debts, you will need to show them the exact amount you owe and how much you repay every month. Everything you declare will need to be backed up by statements.
Lenders might also ask how much you spend on household bills, child maintenance and personal expenses each month, right down to toiletries, petrol and going out. This is because lenders have a duty of care to make sure you are able to keep up repayments if interest rates rise or you face a change of circumstances. They will refuse to offer you a mortgage if they fear you will not be able to afford it.