Understanding Your Mortgage Affordability: A Comprehensive Guide by LASTRA Property Group
If you're considering purchasing a home, one of the most important early steps is determining your budget. For most buyers, this includes calculating a realistic and manageable monthly mortgage repayment.
However, it’s important to understand that your personal calculations may not always align with what a lender is willing to offer. Mortgage lenders operate within strict affordability assessment frameworks established by regulatory bodies—specifically, the Financial Conduct Authority (FCA). These guidelines are in place to ensure that each applicant’s unique financial circumstances are considered when evaluating whether mortgage repayments will be sustainable, both now and in the future—even in the event of changes such as interest rate increases.
Lenders each have their own underwriting criteria and assessment models, but generally, they evaluate affordability by considering:
Your total income (including salary, bonuses, self-employment earnings, etc.)
Your monthly outgoings (such as rent, loans, credit cards, childcare, and other financial commitments)
Your credit history and credit score
Future affordability stress tests (e.g., how you'd cope with higher interest rates)
Even if you believe you can afford a certain amount—especially if you’re already paying more in rent—lenders may still offer a lower borrowing limit based on their internal affordability checks.
One useful step in your mortgage journey is securing a Mortgage in Principle. This gives you an indication of how much a lender may be willing to loan, based on a soft credit check and key details about your income and expenses. However, this doesn’t always provide full transparency into how the decision was made, which can sometimes lead to confusion or frustration.
Understanding how affordability is assessed in advance—and knowing how your existing credit arrangements can impact your borrowing power—can make a significant difference to your mortgage application experience.
At LASTRA Property Group, our qualified mortgage advisors are committed to helping you secure a mortgage that suits both your financial situation and lifestyle needs. As part of a trusted and extensive network, our advisors have access to exclusive deals and competitive interest rates that are often unavailable directly from high street lenders.
We offer tailored advice and support across a range of services, including:
Independent Mortgage Advice
Mortgage Protection
Buildings and Contents Insurance
Private Medical Insurance
Whether you're a first-time buyer, moving home, remortgaging, or investing in property, our team will guide you every step of the way.
For more information or a no-obligation consultation with an experienced mortgage advisor, please contact us via:
Email:
General enquiries: info@lastrapropertygroup.com
Mortgage consultations: lastrapropertygroup@outlook.com
Telephone:
0208 050 7271
Important Notice:
Your home may be repossessed if you do not keep up with repayments on your mortgage.
A broker fee of £299 is payable upon the successful completion of your mortgage.