It used to be 3 1/2 times your annual income as the maximum you could borrow, & your monthly income less deductions to see what disposable income was left, so what you could afford to pay each month. But houses are Way more expensive now. 3 1/2 times many annual incomes doesn't come remotely close to house prices for most people.
So are there other ways of deciding what you can afford to borrow, and if so what? Like maybe longer term mortgages?
By the way I'm asking just for interest. I got a mortgage when they were still affordable. I've paid it off now too, yippee! But if I was starting out now I'd have no chance because house prices have gone up much more than wages, so how do people cope now?
Read more: How are mortgages decided now?
