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How much mortgage could i achieve?

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  • How much mortgage could i achieve?

    Hello everyone

    This is the first time I have considered buying my own property. I have fortunately come into a sum of money and I am looking to use 30K as a deposit on a house.

    I have no idea about mortgages and was wondering what a mortgage lender would offer me with this amount of deposit. I currently only earn 18,500K a year.

    Any information is greatly appreciated.

  • #2
    Re: How much mortgage could i achieve?

    As a rough rule of thumb, banks will lend up to three times single income, and two-and-a-half times joint income, but much depends on your financial history, credit score, and current financial commitments.

    Comment


    • #3
      Re: How much mortgage could i achieve?

      Hi Robic55

      That's very exciting news, and certainly good you've gotten past the main hurdle for first time buyers - the mortgage deposit. Jeannie D is absolutely right, but it can vary lender to lender. Try some of the online calculators scattered around google. Barclays has one of the better ones with an interactive slider.

      In general though, with your salary you'll probably be able to borrow somewhere in the region of £80,000 to £90,000 with a 25% deposit. So in practice you could buy a home worth around £110,000 - £120,000.

      If you have any more questions don't hesitate to ask. There are no stupid questions!
      Free Guides For First Time Buyers!

      www.FirstTimeBuyerGuru.com

      Comment


      • #4
        Re: How much mortgage could i achieve?

        Id tend to disagree with Jeannie D on that one. Depending on which lender you go to you could get around 4-5 times your income regardless of whether you are single or joint. The usual scenario is (not exact figures) 4.5 * single income OR 4 * joint incomes. Some lenders have a general income multiple, say 4 * for everyone whereas other have it stepped, say if you earn up to 15k they lend 3.5*, up to 25k 4* etc etc.

        Easiest thing to do is have a word with a broker/adviser.
        Anthony
        Compare the Mortgage Market
        http://www.comparethemortgagemarket.com

        Comment


        • #5
          Re: How much mortgage could i achieve?

          Thank you all for your responses. It is pleasing to know that maybe more than 3x my salary may be possible as I would prefer a property above the £100,000 mark. I suppose the next step is to meet up with a mortgage advisor to discuss.

          Thanks again

          Comment


          • #6
            Re: How much mortgage could i achieve?

            Well, 100k should not be too impossible for what you have as deposit and income. Any more questions you have could be easily answered on here too. Im sure there are a number of other brokers on here apart from me.
            Anthony
            Compare the Mortgage Market
            http://www.comparethemortgagemarket.com

            Comment


            • #7
              Re: How much mortgage could i achieve?

              You'll certainly be in the 100k club! Good luck. Chat to a broker.
              Free Guides For First Time Buyers!

              www.FirstTimeBuyerGuru.com

              Comment


              • #8
                Re: How much mortgage could i achieve?

                £125k wont get you much except in the north.

                Dont forget to look at mortgage best buys on certain websites!
                BRAND NEW HOMES
                Information for UK new home buyers
                New Home Blog The latest news and views

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                • #9
                  Re: How much mortgage could i achieve?

                  125k would get you plenty in the midlands - speaking with experience the average mortgage is around 100k here (well in my town and surrounding areas anyway)
                  Anthony
                  Compare the Mortgage Market
                  http://www.comparethemortgagemarket.com

                  Comment


                  • #10
                    Re: How much mortgage could i achieve?

                    Some places will give you 3.5 x income. Try the Halifax

                    Comment


                    • #11
                      Re: How much mortgage could i achieve?

                      Halifax are approx 4.5 * gross for single applicants and 4 * for joint applicant.
                      Anthony
                      Compare the Mortgage Market
                      http://www.comparethemortgagemarket.com

                      Comment


                      • #12
                        Re: How much mortgage could i achieve?

                        Santander will do up to 6* income with a good credit score - it s not advertised but certainaly available
                        Large mortgages and High Net Worth Mortgages from enness private clients

                        Comment


                        • #13
                          Re: How much mortgage could i achieve?

                          Santander do have good income multiples available, higher than most others available.
                          Anthony
                          Compare the Mortgage Market
                          http://www.comparethemortgagemarket.com

                          Comment


                          • #14
                            Re: How much mortgage could i achieve?

                            6 times your salary is a very large amount though. Have a good think about whether you can afford the repayments on a mortgage this big!
                            Free Guides For First Time Buyers!

                            www.FirstTimeBuyerGuru.com

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