• credit card repayments
  • maintenance payments
  • insurance - building, contents, travel, pet, life, etc
  • any other loans or credit agreements you might have
  • bills such as water, gas, electricity, phone, broadband.

The lender might ask for estimates of your living costs such as spending on clothes, basic recreation and childcare.

They might also ask to see some recent bank statements to back up the figures you supply.


3. Future changes that might make an impact

The lender will assess whether you’d be able to pay your mortgage if:

  • interest rates increased
  • you or your partner lost their job
  • you couldn’t work because of illness
  • your life changed, such as having a baby or a career break.

It’s important that you also think ahead and plan how you’d meet your payments.

For example, you can help to protect yourself against unexpected drops in income by building up savings when you can.

Try to make sure it contains enough for three months’ outgoings, including your mortgage payments.

For a full list of the information, you might need to prepare, read our paperwork checklist.


How much can I borrow?

Our Mortgage affordability calculator will show you how much a lender might offer you, and whether you’d be able to afford the monthly payments based on your income and outgoings.

Also, use our Mortgage calculator, which can help you find out how much your monthly payments would be if interest rates rose in the future.

You can also get ready for interest rate rises by thinking about remortgaging or overpaying.

 

https://www.moneyadviceservice.org.uk/en/articles/how-much-can-you-afford-to-borrow