Affordability, how much can I borrow?

David Lauder, Financial Planning Consultant at ESPC, talks us through this topic.

One of the golden questions asked when looking to buy a property is how much can I borrow? Here is some mortgage advice for those in Edinburgh or beyond when it comes to borrowing...

An explanation

Historically it was set by income multipliers of approximately 3 or 3.5 times your income, however there is a more common sense approach nowadays where different lenders will lend different amounts based more on your individual circumstances.

Lenders will factor in how much deposit you are bringing to the table. The bigger the deposit, the less of a risk you are and therefore you may be allowed to borrow a little extra.


Another key thing is affordability, i.e. how much can you afford to borrow? This is based on your income minus your monthly commitments.

So regular loan repayments, credit card balances, maintenance and for some providers childcare costs may be factored in and these can then reduce your borrowing potential against someone with same income who would not have these commitments.

To summarise, no case is the same and different providers will assess your circumstances in different ways to decide how much they will lend you.

We at ESPC can help; we are independent and deal with all the main mortgage providers and have the knowledge to analyse and to advise who will look at your circumstances best but also ensure any mortgage commitment is affordable. Come in and see me when you are free.

Want to know more?

David 100David Lauder is a Financial Planning Consultant who helps clients to find the most suitable mortgage solution tailored to their circumstances along with identifying any other gaps they may have in their finances. Call David on 07810522422 for more information.

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The initial consultation with an adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.