Am I eligible for a mortgage? How do you know?

We are often asked by clients if they would be eligible for a mortgage, the questions tend to be ‘could I get a mortgage?’ and if so ‘what is the maximum mortgage I can get?’ or how they should ‘go about applying for a mortgage to see how much we can borrow’. All of these are valid concerns and in the current market there are several factors which favour buyers.

When we talk about property and mortgages we tend to avoid the use of the word ‘affordability’ and it is important to understand that affordability is banking talk for ‘how much debt can we put you in’. The way that affordability is calculated is by looking at rates and then looking at property prices, because prices have come down and rates are doing the same the ‘affordability’ has increased, however, it is the underlying price of property that we urge our clients to focus on because rates change and market cycle interpretation using things like affordability are impressive …

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