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to produce bank statements to show your gross income in your business bank account. The lender will also carry out a comprehensive credit check on you, lender will be much more than the original cost of the property. For example, say you paid £100,000 for the house, the mortgage, with its interest charges, could easily cost you £250,000 over 25 years. However the house will probably be worth Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging £500,000 by then. If you had put the same amount of cash in a bank or in the city it's unlikely it would have seen the same increase.The parents of todays thirtysomethings paid about £4,000 for their homes. In those days that was a lot of dosh. Now they're worth at least £150,000. How much can you borrow? This depends on (1) how much you earn and (2) how much the property you want to Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging buy is worth. But bear in mind that what you can borrow is not neccesarily what you can afford (see below). 1) How much you earn. The amount you can borrow will vary between lenders but the rule of thumb is three times your annual earnings. However typical variations would include: Couple 1: two and a half times both annual incomes. Couple 2: three to three and a half times the greater income Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging plus one year of the second income. You can check out our calculator, either now or later, to see how much you can borrow. Here's a secret: Assuming you have a regular income and clean credit history you're likely to get a loan fairly easily. Despite the impression you may be given that you've got to jump through the hoops, the competition between lenders to get your business is fierce. Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging Some lenders now use more sophisticated credit rating methods, where they examine your income and your outgoings. The idea is that every borrower has unique circumstances. Someone with teenage children and high outgoings can't afford to borrow as much as a singleton earning the same salary. Sometimes people are lent five times income. 2) How much the property is worth. Most lenders will Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging loan up to 75% of the property's value. (This is known as the Loan to Value ratio) Some will lend up to 90 or 95% of the property's value. Some will let you have up to 100% ie a 100% mortgage - but you'll pay over the odds for this and will probably be forced to buy mortgage indemnity insurance (bad). A few will even lend more than 100% but special rules will apply. Depending on the area Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging you want to buy in, the lender may refuse a loan, for example if they feel the property isn't expensive enough for the area. More often, it's the opposite case - where a property is seen as too expensive. Note that how much you can borrow is not necessarily what you can afford. You may be able get a mortgage which stretches your budget to the limit but leaves you in trouble when you have Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging to pay the other costs involved in buying your home and its future running costs Some lenders will want to estimate this by checking your average outgoings eg your household bills, any debts etc. Some will get you to fill in a detailed questionnaire either by hand or on the phone or online etc. To read more about this now click here. If you're a first time buyer it will always help if Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging you can show you've been paying regular rent for a similar amount to what your intended mortgage payments will be. How do you prove your income? If you're employed: The lender will ask for written evidence e.g. payslips and/or your P60 for the past two years. They'll also probably write to your employer asking for confirmation. Some lenders may accept income that's not guaranteed eg commission, Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging bonuses etc., though this would be exceptional. If you're self employed: Traditionally this was more difficult and as a result there are lenders who specialise in the self employed. However, nowadays, many lenders will be interested in you. You would need to show three years audited accounts. If you haven't been in business long enough then the lender should accept a letter of confirmation Remotgaging - low cost re-morgage - Remortaging at low costs ! Remortaging from your accountant. How long are mortgages usually for? . The answer is usually 25 years. But this is only because that was the traditional length. You can get a mortgage for any term. 15 or 20 year mortgages are fairly common. The reason why people would want a shorter mortgage term is that - despite seeming to be more expensive - ie the monthly payments are higher - at the end

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