How much can you borrow?
Lesson 6 of 12 in our free Buying a Home guide: a 5-minute money game with the key points below.
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Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Buying a Home is free for everyone.
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Questions you'll answer
Mo earns £32,000. At 4.5 times income, roughly what's the most a lender might offer?
What's an 'agreement in principle'?
Quick facts
- Being on the electoral register at your address → Helps. Helps lenders confirm who you are.
- Lots of recent credit applications → Hurts. Can look like you're stretched.
- A big car finance payment every month → Hurts. Less income left for a mortgage.
- A history of paying bills on time → Helps. Shows you're reliable.
- Regular gambling transactions on your statements → Hurts. Lenders read your bank statements.