Lenders normally calculate how much you have left at the end of each month after you have paid out your essential bills. Generally, they will look at ;
• Your total income
• Outstanding loans, credit card balances and other commitments
• Household bills and living expenses sush as commuting costs
If your work involves payment by bonuses, commission or overtime, lenders tend to view this as non-guaranteed income and may only consider half of it when they add it to your other income.
Under the Financial Services Authority (FSA) rules, the lender mustn’t give anyone a mortgage loan they won’t be able to afford. Lenders should lend responsibly. Lenders used to give people money based on how much they earned, now it’s more about looking at the whole picture through an affordability assessment. It’s crucial that you look at your finances carefully before taking on a mortgage loan.

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