The answer 'as much as you can afford' is not really so silly as it sounds, because all responsible lenders will allow you to borrow up to an amount which, in their opinion, you could afford to repay. After all, it's their money which is on the line!

Broadly speaking the amount that can be borrowed by way of a mortgage depends on three main factors:

• the property being purchased
• the employment and available income of the proposed borrower
• the proposed borrower's personal credit and status situation

BUT - and you may as well know this at the outset as it may save you a lot of time - if you haven't got a deposit of at least 10% of the purchase price forget it!  Lenders are being so cautious at the moment, it is unreal .  There are just a few deals (usually high fixed rate) available at  90% ltv but the acceptance terms are quite onerous, and they are expensive. 

As far as the property being purchased is concerned, this will broadly speaking be a property which the lender is happy to take as security for the funds it is advancing. In other words they would normally want to see a conventional domestic house, readily habitable, in good overall condition and either freehold or with a lengthy outstanding lease if leasehold. Age of property is not normally a factor if the above criteria are met but special consideration, and often restrictions, will apply to such properties as:

• local authority or former local authority properties
• properties in certain areas regarded as 'blighted' or where there is a history of subsidence for example
• large 'mansion' type properties or of high value where the amount of advance may be restricted
• properties with unconventional structure such as steel framed or concrete
• properties with any element of commercial use (e.g. a flat above a shop)
• properties which have existing tenants
• freehold flats can create problems on occasions

The above list is by no means exhaustive and with access to the lending criteria of all individual lenders we can advise you on the best course of action regarding any property in which you are interested.

Moving on to employment and available income it is here that the attitudes and considerations of the many lenders can vary enormously. Basically, all will look at:

• your type of employment (i.e. is it permanent, or seasonal, are you employed or self employed etc.)
• the length of your employment - i.e. stability, or are you perhaps in a probationary period
• the level of your income and how this is made up - i.e. split between basic, bonuses or commissions

There was a time when lenders had a more or less definite formula for working out how much they would lend a borrower.  But whilst you can still keep such figures as three or four times gross income for the main earner  plus half a secondary income in the back of your mind, these days many lenders will tell you that they lend on an 'affordability basis'  Others use a positive point scoring method.

What all this means is that lenders look (or rather their computers do unforunately) at an application and  asess this not only by income levels but also such matters as type of job, how long in the same employment, if you are an existing homeowner how long you have been in residence.  Number of dependents, ages of children and a host of other matters are also considered.

Your existing credit and how well (or badly!) you have conducted this is also taken into account, and if any of the credit is to remain outstanding after the mortgage arrangement, the cost of repaying this will be taken into account when assessing how much a mortgage provider will lend. 

What lenders are doing these days is to place more emphasis on 'life-style' than they have in the past.  You are far more likely to get the mortgage of your choice, frankly, if you are married, with a pretty good income, same job  or line of business for a few years, and not moved house or changed job too frequesntly. On the other hand, don't not apply because you are a young  single entrepeneur going places!

Some lenders ignore outstanding credit which has less than a year to run, others ignore all other borrowing but allow a lower income ratio. Some lenders take loans and hire purchase into account but ignore credit card spending for example.

Lenders will, in many cases, take other income into account such as pension from previous employment, certain disability benefits, second job income. Others will 'stretch' income multiples if the employment is professional or borrowing is low compared to the purchase price or value, and so it goes on!

One thing is abundantly clear, however! We know exactly who does what........which lender is best where income is a problem or there is a need for a more understanding or realistic approach than cold figures might dictate. Yet another advantage of allowing someone 'in the know' to handle your mortgage requirements!

Finally, moving on to the personal credit and status situation of the borrower, this is normally the first consideration of the lender. A credit search will be undertaken and the proposed borrower's credit file will be examined. See 'my credit file - what is it? ' for more information on this. Anything detrimental will bring an immediate reaction from the lender, varying from absolute refusal to lend, a detailed explanation of any discrepancies or matters which are not clear, or lending on special terms.

It is absolutely vital that before making a mortgage application you consult us and tell us everything about your circumstances. A refusal to lend can be for many reasons, including not being on the voter's role for no good reason, inability to prove where you have been living for the past three years, undisclosed credit on your application form, already been turned down elsewhere, poor conduct of previous credit, existence of defaults, court judgements or worse.....the list goes on and on. Again - we repeat it over and over again because it is so vitally important - discuss your requirements and situation with us before you make any approaches with a view to borrowing. Obviously we assist every day those who have already been turned down elsewhere but it does make our task that much harder - but don't let that deter you from approaching us as we thrive on challenges!

But now, to end this section, is one very important consideration!

It is very often not how much can I borrow?, but rather how much should I borrow?

Following recent alterations in base rate, mortgage rates are at this moment lower than they have been for some time - the problem is getting hold of one!  Even if you can obtain a mortgage, before 'taking the plunge' you should consider such as the following:

Is my job 'safe' ? Of course it is you might well feel. Perhaps it is, but maybe  many in jobs up and down the country who thought their jobs were safe, and yet were made redundant thought the same. We are not suggesting you should not take out a mortgage but be sure to spend the small amount required each month to protect your mortgage payments in the event of unemployment, or long term sickness for that matter. We can offer you a full range of competitively priced policies - and indeed will always mention these to you anyway as part of our obligations under current legislation.

Is the income the lender taking into account permanent? Apart from the possibility of actual job loss, if I am taking bonuses or overtime into account at the time of my application will these always be there? And even more important, if - for example - a couple are basing their application on two incomes one of which might cease unexpectedly, what then? Resolutions such as 'we've agreed not to have children for five years' do not always work out in practice!

What if interest rates rise? Almost certainly these days, when you take out a mortgage you will receive a 'special deal' of one sort or another. This might be a discounted rate or a low fixed rate for a period. Always work out your calculations on affordability on what the 'normal' rate is - i.e. the rate which will apply after any special deal expires. Whilst we hope we will never see the return of interest rates of 14% or more which operated a few years back, it is always wise to work out (you can use our mortgage calculator ) what your mortgage would cost if rates did go up a couple of per cent or so in the next few years. Remember there are many other expenses you will have in addition to the mortgage and it is wise to be prudent in such matters and not always commit yourself to borrowing the maximum which might be available at the present time.