Moving Home - Mortgage Advice in Hull

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Your home may be repossessed if you do not keep up repayments on your mortgage

How much can you borrow?

One of the questions that our clients in Hull want to know from their Hull Mortgage Advisor is how much they can potentially borrow. This can depend on a number of factors.

The rule of thumb is that you can usually borrow around 4.5 times your annual income but becomes more complicated based on what types of income you have and also the level of credit commitments that will remain when the new mortgage completes.

Our Mortgage Advisors in Hull are always on hand to discuss this with you.

All lenders will consider using basic earnings from employment and declared income for the self-employed in Hull, but there may be other income that can be used for an application. This is where things can become slightly more complex because not all lenders accept all income types, or if they do then they may not consider using 100% of the amounts.

What income can be used?

Here are some of the other income types that some lenders (not all) will consider using when working out how much they are prepared to lend to you when assessing income

  • Overtime
  • Shift Allowance
  • Commission
  • Bonuses
  • Call Out
  • Working Tax Credit
  • Child Tax Credit
  • Universal Credit
  • Child Benefit
  • Maintenance Payments
  • Disability Living Allowance
  • Personal Independence Payments (PIP)
  • Pension Income
  • Rental Income
  • Car Allowance

Our qualified mortgage broker team in Hull are here to help.

There can be a really big swing in how much some lenders are prepared to consider lending based on these income types. You would be surprised to see the difference in the lending capacity that you have from lender to lender.

Okay – now to add to the complexity of how much you are able to borrow, there are other things that are factored into the assessment. Here are some of the things that can reduce the monies that you are able to borrow.

Monthly Commitments – If you have personal loans, car finance, mail order, catalogues etc., then lenders will factor these into the assessment of how much they are prepared to lend. They will tend to look at your current monthly payment rather than the overall balance (Although some lenders will take into account overall indebtedness of customers). If you have a credit card or a store card then lenders will usually work off the overall balance and then work out a percentage of the balance to arrive at a monthly figure – so as an example it might be that on a credit card balance of £1,000 they assume a 3% monthly payment of this (£30 per month) to factor in this debt.

Family Commitments – Lenders will also factor in if you have any financial dependents. This could be children or even other relatives that might be dependent upon your income. To give an example – If you are a single applicant with no dependents then you might be able to borrow more than a single applicant that has 3 financial dependents. If a customer is making monthly maintenance payments for children that do not live with them then this figure will also be classed as a credit commitment. Other family costs such as nursery fee’s, childcare costs are also often considered as a monthly commitment and can affect the amount lenders are prepared to lend.

Other Commitments – There are other things that can often crop up on an application that can potentially be viewed as a monthly credit commitment, but the assessment of this can vary from lender to lender. These include pension deductions, payments to share schemes, deductions on wage slips such as student loans, cycle to work schemes, company cars etc.

So how much can you really borrow? – As I stated at the very beginning. It depends on your circumstances, and we know from speaking to clients every single day that everyone’s situation is different. I would take the calculators that are online with a pinch of salt because they are often just a multiple of the declared income that has been typed in and not always accurate. They often do not take into account other income types that you might have or monthly commitments.

The ‘I Am A Mortgage Broker’ Team are based in Hull and will go above and beyond to help all of our clients to ensure they get an excellent service.

We can accurately work out how much you can borrow and how much of a deposit you will need.

We will guide you through the whole process from the initial telephone call, right through to your mortgage offer and then finally moving into your new property.

Trusted Qualified Mortgage Advice in Hull

We offer Free Mortgage Appointments to all of our customers in Hull.

If you would like to talk to a mortgage broker you can rely on in Hull, then contact us today by either calling, sending a message or book an appointment online through our website

We are a local and professional Hull Mortgage Broker that provides mortgage advice in Hull and surrounding areas.

It is important to speak with a Mortgage Broker in Hull to ensure that you get the best advice.

Here is what our customers say...

Joshua Peacham
Joshua Peacham
January 26, 2022.
I cannot recommend Paul and his team enough, i needed a 5% mortgage after just starting a new job, i had previously had difficulty with other advisers but Paul turned this all around relatively quickly and my mortgage has now been offered. Brilliant service, very professional, no messing about.
Dave Balfour
Dave Balfour
December 17, 2021.
Brilliant service from start to finish.Our advisor Chris couldn't be more helpful and always there if we needed any advice .Sorted our remortgage out quickly and effortlessly. Highly recommend .
katie minns
katie minns
November 22, 2021.
Absolutely 5star company I have used these for the past 4 years each time I need to remortgage they are amazing and with you every step of the way taking the hassle and stress out of it. 100% recommended 👌 I recommend them to all my friends thanks again Paul & team!! Making dreams come true x
Matthew Wigglesworth
Matthew Wigglesworth
October 13, 2021.
Paul and Emma got me a better deal on solicitors than I did when I shopped around myself they also turned around my mortgage exceptionally quick. Zero hassle . I didn't pay them a penny. Very good WILL use again.
September 29, 2021.
5* all round service. After being messed about by our previous mortgage advisor, it's been a breath of fresh air dealing with Paul and Emma. We were on a very tight deadline to swap deals before going onto the SVR and they managed get us sorted in a turbulent housing market . Every question we asked was answered promptly and all advice was very transparent. Thank you again!
Leanne Cable
Leanne Cable
September 15, 2021.
Cannot recommend Paul & Chris enough, nothing was too much trouble, especially for a first time buyer with no clue what was happening, answered every question i had.
lindsey Taylor-Harrison
lindsey Taylor-Harrison
September 6, 2021.
Paul and Emma have been fantastic from day one, very helpful and efficient and managed to get us a brilliant mortgage deal no problem. They where recommended to us by multiple people and we will definitley continue to recommend them to others. Thank you for taking the lead and taking a part of the stress of moving from us. Couldnt have found anybody better.
Charlie Meacham
Charlie Meacham
August 20, 2021.
First time buyers- I Am A Mortgage (special thanks to our case worker Emma) were so welcoming and helpful in the way they supported us through the process of buying a house the first time. There were complications over the course of the purchase, and they were all incredibly patient, helpful, and very very responsive throughout. Couldn't recommend them more!
Beth Clark
Beth Clark
August 10, 2021.
As first time buyers, Paul and Emma from I Am A Mortgage Broker were an absolute godsend for us! They made the whole process so easy, were always quick to respond to questions and took a lot of the stress out of the process. Cannot recommend them enough especially if you are a first time buyer. We found their help and advice invaluable and we will be using this service again when we next move house.
Suzannah Brown
Suzannah Brown
August 6, 2021.
Excellent service from Paul. Efficient, friendly and explained everything really clearly. Paul has arranged 2 mortgages and life insurance for us and we wouldn't use anyone else. Highly recommended.

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Your home may be repossessed if you do not keep up repayments on your mortgage