I'm thinking of getting a mortgage, but wonder if anybody on here can give me a bit of advice about how companies actually decide how much they'll lend you.

Basically I've got a loan at the moment, and I'm paying quite a lot off each month to get it out of the way as quickly as possible. When the mortgage company assesses how much I can afford to borrow, will they base their decision on how much I pay off each month, or how much I owe altogether? I'm just wondering whether I'd be better to spread the payments over a longer period of time so that I have more 'disposable' income available each month?

I hope this makes sense and that somebody will be able to help!

I'm thinking of getting a mortgage, but wonder if anybody on here can give me a bit of advice about how companies actually decide how much they'll lend you.

Basically I've got a loan at the moment, and I'm paying quite a lot off each month to get it out of the way as quickly as possible. When the mortgage company assesses how much I can afford to borrow, will they base their decision on how much I pay off each month, or how much I owe altogether? I'm just wondering whether I'd be better to spread the payments over a longer period of time so that I have more 'disposable' income available each month?

I hope this makes sense and that somebody will be able to help!

Robbie_Lovin is a mortgage consultant, he may be able to help you. I'll pm him for you.

Thanks! You're so kind! x

No problem, only glad I could help. :smile:

If IRC then they ask about the payments you make rather than the amount you owe.
So restructuring your loan to make lower monthly payments should increase the amount they will offer.

The usual policy is a to lend on a multiple of your income (usually about 3.5) minus any regular outgoings. So the answer in short is Yes, if you spread your loan repayments over a longer period you'll get offered a bigger mortgage. Hope that helps.

I think everyone else has answered this for you.

I work for the Halifax as a mortgage adviser - If you'd like me to work out a mortgage in principle for you just PM me your tel no and I shall give you a call from the office some time next week.

If all else fails and you can't get the amount you want to borrow because of your loan then go to Northern Rock who will put the loan on top of your mortgage and not affect the amount you can borrow against 3.5 times your income.