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What can I afford?

How much money you can borrow plays a significant role in determining the kind of home you can afford. Once you have a clear understanding of this, you can establish a budget that works for you.

While this is a useful indicator, your mortgage adviser will take the time to assess your financial situation. They’ll take your lifestyle into consideration to make sure you don’t over-stretch yourself to the point where you may struggle to meet your mortgage repayments.

Getting a Decision in Principle (DIP)

Before you apply for a mortgage or make an offer on a house, it’s advisable to get a Decision in Principle (DIP). This certificate states how much a lender is willing to loan to you. A decision is made based on a number of checks, such as looking at your income against your outgoings and checking your credit rating.

Having a DIP shows the estate agent and the seller that you’re ready to act quickly when it comes to buying, as you’ve already established how much you can borrow, subject to your full mortgage application.