How much mortgage can I get

The amount of money you can borrow is determined by the amount you earn. Lenders generally apply multiples to your income to calculate your maximum loan. Income multiples usually range between 2.5 times and 5 times your individual or joint annual earnings, depending on a wide range of factors. Click here for mortgage calculators

Lenders may be prepared to offer high mortgage multiples if you are putting down a large deposit: because you are committing more of your money to the property it represents stronger security, and they may therefore be prepared to lend you more. Lenders will often define their income multiples according to 'loan to value' or LTV, the size of the mortgage loan in relation to the value of the property. For example, a lender may offer you higher multiples if your LTV is below 90%.

Your credit history is also crucial in determining which lenders will be prepared to lend to you, or whether they will offer you their most favourable rates. If you have consistently met your payments under current and previous credit agreements you will be entitled to the more competitive mortgages on the market. If, however, you have failed to keep up your payments, the mortgage rates available are likely to reflect this.

You can request your credit file from Experian or Equifax and check whether there is any bad credit registered on it, in advance of making an application.

Finally, the third important factor in determining a lender's decision is the property itself; the value and general condition of the property will always need to be assessed to ensure that it represents adequate security. Also some lenders have criteria which may rule out certain property types.