>> a guide for potential buyers 

Embarking on your home-buying journey is exciting, but it's essential to start with a clear understanding of your financial capacity. One of the first questions you'll need to answer is: how much can you actually borrow for your mortgage?  

Let's break it down. 
 

how do I calculate my mortgage affordability?

Lenders typically use a combination of factors to determine how much they're willing to lend you. These include: 

• Your income 
• Your outgoings and existing debts 
• Your credit score 
• The size of your deposit 

Generally, most lenders will offer somewhere between 4 to 4.5 times your annual income. However, this can vary based on the lender’s criteria. 
 

crunching the numbers

One of the things you will be assessed on when calculating your borrowing potential is whether you can comfortably afford the repayments. Here's what will be considered: 

• Your monthly income after tax 
• Your regular outgoings (bills, food, travel, etc.) 
• Any existing debts or financial commitments 
• Potential changes in your circumstances (like starting a family or changing jobs) 

Remember, your mortgage payments shouldn't leave you stretched to the limit each month. It's wise to leave some wiggle room for unexpected expenses or changes in your financial situation. 

Get an idea of what your monthly mortgage repayments could be with this calculator: