Borrowing Against The Equity In Your Home
All lenders are governed by strict guidelines, which were introduced in April 2014. This means that the amount you can borrow is no longer a simple calculation of multiplying the amount you earn to find out your maximum mortgage amount.
Lenders will look at your income and they will also closely look at your spending.
They will want to know about how much you're spending on utilities and debt repayments, for example. Generally, you will be asked about your spending for the previous three months so that the lender can accurately determine how much you are able to afford to pay off your mortgage every month.
The process of applying for a mortgage can be daunting but we will be here to advise and help you through it.
Being whole of market mortgage advisers, we know that the difference between one lender and another can be huge as they view different types of income in different ways - some accept working tax credit and other government benefits as income, other lenders will not.
Types of Income which are acceptable?
- BONUS (USUALLY 3 MONTHS EVIDENCE REQUIRED)
- LIMITED COMPANY INCOME
- WORKING AND CHILD TAX CREDIT
- CHILD BENEFIT
- MAINTENANCE INCOME (USUALLY 6 MONTHS EVIDENCE REQUIRED or COURT ORDER)
- PENSION (P60 REQUIRED)
- RETAINED PROFIT (EVIDENCE FROM ACCOUNTANT)RENTAL INCOME
- FOSTER CARE (USUALLY 2 YEARS EVIDENCE REQUIRED)
Which lender will lend me most?
When we look at the best product for your circumstances the first thing we do is to establish your income and how it is made up. For example, some lenders will take 100% of all income and other may take all of your basic income but only a percentage of your bonus or working tax income for example.
As qualified mortgage advisers, our job is to work out the lender complicated affordability rules and we use the lenders own affordability calculators. We have years of experience on knowing which lender will lend with your type of income and this would be the reason why a certain lender maybe chosen over another lender. This is explained to all our clients and saves time and heart break by making sure we get our clients the best deal for their circumstances and affordability first time.
Want to take advantage of our experience? Why not call us for a chat now and view our reviews on google!