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Buying a home is a big step, and one of the most important questions you’ll ask is: ‘how much can I borrow for a mortgage?’
Well, we’re here to provide some answers to this question – and hopefully make your journey that little bit easier. By understanding how much you could borrow, this should give you more confidence for taking the next steps towards finding your dream home and securing the right mortgage for your needs.
There are several factors which determine how much you can borrow for a mortgage. Here are five of the main ones:
How much you earn is a key factor. As well as including what you earn from your job, lenders will also look at income from factors like pensions, investments and any benefits you might receive – such as child maintenance. Things like bonuses or overtime might count too.
How you earn your income also matters. If you have a permanent job, it’s usually easier to borrow more.
Your savings can play an important role, particularly in terms of your deposit. The larger the deposit, the more you may be able to borrow and usually it means your monthly payments will be less too.
However, we understand how difficult it is to get onto the property ladder – which is why we want to help as many people as possible buy their first home:
Regular expenses like bills, loans and credit card payments affect how much you can borrow. Lenders look at your monthly financial commitments and how much you owe to decide what’s affordable for you.
If you’re currently paying off a large debt, this can reduce the amount a mortgage provider is prepared to lend you. They’ll want proof that the cost of paying off this debt won’t affect your ability to pay your mortgage each month.
Your credit score also matters a lot. A good score means you’re likely to be less risky, so lenders may offer you a bigger loan. They also check your credit history to see if you’ve had any issues with debt, like missed payments or defaults.
The length of your mortgage affects how much you can borrow. Longer terms (such as 30 years instead of 25) mean lower monthly payments, which might help you borrow a bigger amount, but you’ll pay more interest over time.
Interest rates play a big role. Higher rates mean higher monthly payments, so you might not be able to borrow as much. Typically, the more deposit you can put down, the better rates available to you. The type of mortgage you choose (such as fixed or variable rate) will also affect the interest rate on your mortgage.
Whether you’re asking ‘how big a mortgage can I get?’ or wondering about the smallest loan amount, we can guide you through these details.
Each lender tends to have their own criteria when it comes to the maximum amount they’ll lend – and of course, it very much depends on your circumstances too.
The same goes for the minimum borrowing amount. But the good news is, once we know more about your needs, we have a range of options on offer which could be right for you.
At this stage, we can't give you a definite answer to this question. Approval very much depends on a number of factors, such as your personal circumstances and whether you meet our lending criteria.
But one thing is for sure, we'll strive to help you through the process of applying for a mortgage through us with clarity and transparency. Our team of experts are here to guide you each step of the way.
We offer flexible options whether you’re a first-time buyer, remortgaging, or buying a new home. And with Skipton's experience, you can trust you’re in good hands.
We're proud to have been named a Which? recommended provider for 2024 and are here to help you find a Skipton Building Society mortgage that is suitable for your needs.
Understanding how much you could borrow is a crucial first step toward buying your dream home. At Skipton, we’ll not only help you calculate this amount but also offer guidance on your next steps – whether that’s getting a Decision in Principle (DIP) or recommending a mortgage from our range that’s right for you.
You could lose your home if you don’t keep up your mortgage repayments.
