The question should not be “how much can I borrow”, but “how much can I afford to borrow”
Since April 2014 when new regulations came into force, there is much more emphasis on looking at an individuals overall situation rather than just looking at how much they earn. Your lifestyle and how much you spend each month can now be heavily scrutinised by lenders when assessing whether or not you are eligible for a mortgage, and furthermore, how much they will be able to borrow.
What should I do?
First of all, it is strongly recommend that you calculate your living costs and compare that against how much income you have. Set up a spreadsheet with income and outgoings and establish how much disposable income you have left each month, and how much you could comfortably afford to pay towards your mortgage. Interest rates can fluctuate and as a result your monthly payment may increase in the future; make sure you allow a degree of flexibility in your budget to allow for this possibility. If you need help with this process then please do not hesitate to contact Daniel.