Working out how much a lender would lend used to be a fairly straighfoward process (usually about 3 x joint income or 3 x first income plus 1 x second income) However, times have changed and the amount you can borrow is not just determined by how much your income is. Most lenders now use what they call 'affordability' and what's more complicated is all lenders have different criteria. You may find you could borrow more with one lender than you could with another even if you gave them both exactly the same information.

Generally the factors a lender will take into account are how much income you get, whether that is from employment, self-employment, certain benefits, pension income etc. How many dependents you have, if you have outstanding loans or credit cards, how much you pay each month on council tax, utility bills and other monthly outgoings.

When you start the application process the lender will carry out a credit check. This is to see how good you are at handling credit. You can check for yourself what your credit score is through a credit reference agency such as Experian or Equifax.

If you are employed most lenders want to see your last three months payslips and your latest P60. Some lenders may also want to see your last three months bank statements.

If you are self employed a lender may request an accountant's certificate direct from your accountant. Some may want to see the last two or three years accounts but more and more lenders are now asking to see the last two years SA302s. An SA302 is a calculation by HMRC showing how much tax you have paid. It is basically the same information that is on your self assessment. To get an SA302 you have to phone your tax office and request one. They can take up to two weeks to be sent out so if you are thinking of the possibility of taking out a mortgage it is worth requesting them in advance.

Other documents a lender may request are your latest mortgage statement or if you are renting, proof of your rental payments.

All lenders differ and this information is intended as a general guide.