Income v expenditure

How much you earn in total set against your regular outgoings will be key in determining how big a mortgage you are likely to be offered by most lenders; have a look at our guide here to get an indication of how this information is used by lenders.

Size of deposit

It’s not so much the amount you have as a deposit that counts, more what proportion that is of the value of the property that you want to buy. The basic rule is that the higher the proportion you can put down as a deposit, the more favourable the rates are that you are likely to be able to secure on your mortgage. A 5% deposit is the absolute minimum that you must be able to put down before mortgage companies will consider lending to you, 15% will get you more favourable rates, but the very best rates are open to you if you have a deposit of 40% or more.

Buy-to-let mortgages

If you are looking to purchase a buy-to-let property, the minimum deposit requirement is 20%, with most lenders wanting to see 25%