5 x sole or joint income is generally a safe starting point however calculating how much you can borrow depends on a number of things, such as:

• The amount of your deposit

• How much you spend each month on regular commitments

• Whether you're paid a basic salary, bonus, commissions or overtime

• If you're self employed

• Your age and whether you are looking to borrow beyond your retirement

One of the most important factors in determining how much you can borrow is the lender’s criteria.

Each lender has different policies and as brokers who, can introduce you to the whole of market on the Isle of Man, we are perfectly placed to match the right lender to your borrowing requirements.

What if I need to borrow more?

We’re sometimes able to arrange higher borrowing by taking your own individual circumstances into account.

Any borrowing is subject to affordability checks and credit status

Bank Arrangement fee (£0-£999)

This is the fee for the mortgage product and is sometimes known as the product fee or completion fee. You can sometimes add this to your mortgage, though this will increase the amount of borrowing and affect payments.

You should check whether the fee is refundable if the mortgage doesn’t go ahead. If not, it may be possible to request the fee is added to the mortgage and then to pay it once the application has been approved and is definitely proceeding.

Valuation fee (£0 - £1500)

The mortgage provider will value your property to make sure it’s worth the amount you wish to borrow for their security Some lenders won’t charge this fee on certain mortgage deals. You can also pay for your own property survey to identify all the repairs or maintenance that might be needed.

The lender’s survey only looks at the property value, not necessarily the potential problems and future costs.

Telegraphic transfer charge (£25 - £50)

Sometimes known as CHAPS payment, this fee pays for your mortgage provider to transfer the money to your solicitor.

Early Repayment Charge (1% - 5% of the outstanding balance)

Only applying to existing mortgages with a lender but usually if you are still within a fixed term mortgage. You will need to check with your current lender, especially if you want to make an early repayment in the future or an overpayment. Your mortgage documents will explain this.

For example, a £100,000 mortgage with a 2% charge would cost you £2,000. This covers lender costs if you repay all or part of your mortgage earlier than the agreed term or deal period.

Whilst life cover is not compulsory, if you have someone who is financially dependent on you then you should really consider taking this out.

Life cover can be important for many people and especially for those who have others they rely on financially, such as repaying your mortgage. As a minimum, it’s always a good idea to review your needs when you pass a life event, for example:

- Buying a property

- Getting married

- Having children

Ask yourself if your loved ones could continue in the same situation financially if you were to die. If the answer is ‘no’ then you should review your life cover needs.

This is straightforward and we can do this for you.

Apart from you monthly repayments you will likely need to budget for:

• survey costs

• solicitor/conveyancer fees inc. land registry

• removal and moving in costs

• buildings insurance

• initial furnishing and decorating costs

Your bank may be able to help you though they will only discuss products with you that they can provide. This may not be the best solution available to you and could mean you paying more. Some banks also have more restrictive policies depending on your individual circumstance or the property you are buying which may cause undue delays or even a decline meaning you lose a property.

We will review the whole of market including your existing bank so there really is only upside in using a mortgage broker.

When working out how much you can borrow, the lender will look at affordability such as:

1 - Income

• your basic income

• income from your pension and investments

• if you receive child maintenance or financial support from ex-partners

• any other earnings you have from overtime, commissions or bonus payments or a second job

You will need to demonstrate you income by documents such as:

• pay statements

• business accounts

• 2 years tax returns

2 - Expenses

• credit card repayments

• maintenance payments

• insurances: building, contents, travel, pet, life…

• any loans or credit agreements you might have including hire purchase

• regular bills such as water, gas, electricity, phone and broadband.

• lifestyle expenses

3 - Future change impacts

A bank will also ‘stress test’ your situation to ensure you could afford your mortgage repayments if circumstances change such as

The lender will assess whether you’d be able to pay your mortgage if:

• interest rates increased

• you or your partner lost their job

• you couldn’t work because of illness

• your life changed, such as having a baby or a career break.

It’s important that you also think ahead and plan how you would meet your payments.