How much you can borrow is determined by a number of factors. Most lending institutions will want to know what your salary and any other income is, so they can be sure you can afford the repayments. If the loan is to be taken out in partnership with another person, then you will be able to pay back more, which increases the amount you can borrow.



They will also want to know what debts you have. That includes car repayments, all the debt on your credit cards and any lease agreements you may have. Your living expenses and lifestyle will also be taken into account. Your credit history will be examined to see whether you have fallen behind in repaying - or been unable to repay - any other loans.





Another important factor to be taken into account when determining how much you can borrow is the value of the property. This will be determined by the lender and will not necessarily be the price the property is advertised at. And last but not least is the actual loan itself. That is, the terms of the repayment. If you take a longer time to pay it off, your repayments will be much lower, but you will be paying lots more interest. A shorter term will save the amount of interest paid, but give you higher repayments. This is something that must be looked into closely.