How much can I borrow?

The American view of lending and borrowing is fairly similar to the one adopted in the UK.

In the UK mortgages are based on an income multiple system when working out how much a person can borrow. For example three times the main income plus an additional income. Also in the UK we have a wide range of mortgage products that are flexible and allow us to borrow more and in different ways. For example Buy to Let mortgages where the mortgage is not based on your income at all.

In America the view on debt in general is very similar to the UK but as a foreigner to them restrictions are placed on the mortgage products available. In working out how much you can borrow, American banks will look at your affordability in two stages. The first stage is worked out as a ratio of total mortgage expense including taxes and insurance to income. The second ratio is calculated on not only the mortgage expenses but also housing expenses such as local taxes and insurances. These are called the front and back end ratios respectively.

The best way to ensure that these are calculated accurately, you need a good knowledge of potential taxes and insurances. Our expert advisors are willing to help you calculate these ratios and assess the maximum amount you can borrow.

For an accurate quote please click here or call 0800 298 5136 to speak to a specialist advisor.