The amount you can borrow on a mortgage will depend on your income and whether you want to buy the property on your own or with someone else.

The exact amount will depend on your individual circumstances, but these guidelines will give you a good idea how to calculate the income a mortgage lender will use before using income multipliers or affordability calculators.

What income is used

For employed people this is based on all of your annual basic salary. Mortgage lenders will then look at your additional income, overtime, commission, bonuses and second jobs. These are all taken into consideration, however not all mortgage lenders will take 100% of this income. You may also be in receipt of maintenance payments, tax credits and have other regularly monthly income that may be taken into account as your annual income by some mortgage lenders. If you have any income other than basic salary that you need to take into consideration it would be advisable to discuss this with a mortgage advisor.

If you are self-employed the amount of mortgage you can borrow is based on your business accounts and will probably be calculated using your net taxable income. Many mortgage lenders require at least 2 years of accounts to assess your net income if this is not available than a self certified mortgage may be right for you.

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