Lenders are usually willing to lend up to 3 times your annual salary, although some may offer you up to 4 times your salary. You will have to supply proof of your employment as part of the application process and the lender will confirm this with your employer.

If you are taking out a joint mortgage and have two household incomes then there are 2 different ways that a mortgage lender could use to work out your maximum value.

1. They will work out 2½ times your joint income. For example:

You are buying a property with your partner. Your salary is £20,000 per year. Your partner’s salary is £15,000 per year.

20000 + 15000 = 35000.

35000 + 35000 + 17500 = 87500

Therefore they will offer you a mortgage of around £87,500.

2. They will take three times the first income and one year of the second income. For example: Your salary is £20,000 and your partner’s is £15,000.

20000 + 20000 + 20000 = 60000

60000 + 15000 = 75000.

Therefore they will offer you a mortgage for £75,000.

Increasingly lenders and brokers are now assessing your maximum mortgage value using an affordability scale. This means that they will take into account your personal circumstances to find out how much you can afford to spend on your mortgage each month. This is particularly useful for first time buyers who have no dependents. The theory is that you can afford to pay more towards your mortgage if you are both working and have no children.

Whatever your maximum mortgage value, if your monthly payment is hard to meet at the beginning of your mortgage term, you may have difficulties if interest rates were to rise.