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South
Africa
How much
can i borrow?
When thinking of
buying a property
in South Africa,
you must take into
consideration the
fact that there
are no non-status/self-certification
mortgages available.
All mortgage applications
must be backed up
with the bare minimum
of; your proof of
income, i.e. if
employed - copies
of your last three
month's pay slips
and copies of your
latest P60/Employer’s
Reference combined
with copies of your
last 6 month’s
Personal Bank Statements
are necessary. Alternatively
if you are self-employed;
copies of your last
three years Audited
Accounts, copies
of both your last
12 month's Business
and last 6 month’s
Personal Bank Statements
will be required
on application.
It is important
to note that, in
South Africa the
Lenders will NOT
take into consideration
any proposed Rental
Income from the
property for mortgage
purposes/repayments.
The amount you
can borrow is based
on your net (not
gross) income, i.e.
the amount you 'take
home' each month.
In South Africa
your mortgage repayments,
combined with any
of your other monthly
pay outs (such as;
bank loans, maintenance,
etc.), must not
exceed 35% of your
monthly income,
therefore the amount
you can borrow is
calculated on an
affordability basis.
Example:
If your net (joint),
monthly income is
£1,000, then
35% of this is £350,
if you have outwards
payments of £50,
then this leaves
£300 to spend
on your, monthly
South African mortgage.
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