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First Time Home Buying Guide - Page 6 of 11:
Obviously the amount you can borrow is one of the most important aspects that must be considered when you are buying a property. How much can you borrow? Well, the answer, whether you are a first time buyer or not, is no more than you can comfortably afford!
A Shire Direct Mortgage Advisor will carefully assess your circumstances, needs and aspirations, and will help you calculate your budget to confirm that your mortgage and all the other attendant costs are affordable!
The methods used to calculate how much you can borrow differ from lender to lender, and the formula will often change within any particular lender's product range. For instance, a 100% mortgage facility is considered to be a higher risk, and so it is likely that the formula for calculating the amount you can borrow would be more stringent than if you were providing a deposit.
Lenders will generally use either traditional income multipliers, or some form of debt to income ratio, or a combination of both.
For more information regarding income multiples, affordability, and borrowing amounts, why not check out the following resources on our website..,
So, what if you happen to be a first time buyer that is self employed and require income self-certification? We'll take a look next...
First Time Buying, self employment and
income Self Certification NEXT ›
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Over £2,000 worth of Argos Vouchers to be won in the Shire Direct Grand Prize Draw 2008! Terms and conditions apply - please read article for full details.
Claim £100 worth of Argos Vouchers upon completion of your transaction throughout 2008. Terms and conditions apply - see our Vouchers Special Offer page for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.