Even though two people may have exactly the same income, their outgoings can be very different. So, as well as taking your income into consideration, it's also important to think about your other financial commitments, and consider what effect future interest rate rises could have on your finances. This is to help guard against your mortgage becoming unmanageable.
Again, you will be asked to confirm your outgoings as a mortgage will not be agreed if there is any indication that you cannot afford it or keep up the payments.
When considering how much to borrow or how you would like to repay your mortgage, please remember that changes to your personal circumstances can alter your financial circumstances as well.
You must be at least 18 years old to apply and not over 75 years at the end of your mortgage term. Only your retirement income will be considered if you want your mortgage to go past your planned or state retirement age.
Before you apply for your mortgage, we'll ask for your consent to search the information held about you and your financial arrangements. Personal details about you and, in particular about your financial arrangements with banks and other financial service companies, may well have been passed on to credit reference agencies. This and other publicly available information, such as the electoral roll, is held by the agencies and, with your consent, made available in connection with future loan or credit applications you may make. The services of a credit reference agency and also fraud prevention agencies will be used to help assess your application for a mortgage.
If you are looking for a mortgage where the monthly payments are calculated on an interest-only, or a combination of interest-only and repayment, then the most you can apply to borrow is 75% of the property's value (or the purchase price if lower).
However if you decide to have your monthly payments calculated on a repayment only, you can apply to borrow up to a maximum of 95% of the property's value (or the purchase price if lower). This is subject to lending and product criteria at the time of application.
If you are switching your mortgage from another lender to us and borrowing more than 75% of your home's value, you must take out the whole of your mortgage on a repayment. Also, if you want to borrow more than you owe on your current mortgage, the most you can apply to borrow in total is 85% of your home's value.
Where your mortgage is for a new-build property (one which was first occupied in its current state whether newly built or converted) you will only be able to apply to borrow up to 85% of the property's value.
If you are applying for a buy-to-let mortgage, you may be able to borrow up to 75% of the property's value (or the purchase price if lower). Borrowing is limited to 65% of the value of new-build properties.
Deals may be available from time to time for which different borrowing limits will apply.