When you are preparing to purchase a home, one of the first things you need to figure out is how much you can afford to spend. This means researching the amount of money a mortgage lender is likely to approve and what sort of mortgage repayments you can afford. A number of factors will be taken into account when determining this, including your income, current debts, your credit score, and how much you have for a down payment. Most lenders will be looking for a debt-to-income ratio of 31% to 36%. From your own personal perspective, it is important that you are able to comfortably afford your repayments on top of your other monthly expenditure. Many advisors recommend having a savings account with enough money to cover 3 months on all of your monthly outgoings allowing you to cover those payments in the event of a drastic change in circumstances.

The calculator below can give you a rough estimate of the monthly repayments you might expect to pay based on different mortgages and down payment options.