To determine how much mortgage you can afford, your lender will consider a range of factors in an affordability assessment. This takes into consideration your monthly income and then other living expenses and outgoings you have, such as bills and regular credit card payments. As well as considering current factors at the time of your assessment by the lender, they will also take into account any future changes that may impact your ability to make your mortgage monthly payments. For example, they might consider your chance of redundancy or pregnancy. These considerations and the process of the assessment will be the same for both a joint or sole mortgage application.
As for your own personal considerations when it comes to affordability, you should also keep in mind any additional costs you’ll face, as well as the purchase price of the property you are buying. These additional costs may include taxes, any relevant insurance you’d like to purchase as a homeowner. Considering all of the costs that come with being a homeowner will help to inform your decisions when selecting a mortgage, and will overall help you to make better financial decisions.
When it comes to considering your affordability, it’s important, again, to consider the two elements of a mortgage – the capital and the interest rate. Regarding the latter, there are ways to better your chance of getting the best interest rate, which will affect how much you can afford to repay. For example, having a good credit score, saving a bigger deposit, and using comparison tools to compare interest rates out there are all steps you can take.