how much I can realistically borrow?

Snakes · 21 February 2017 at 5:51PM

Hi all,

I am a single first time buyer and wondering how much I can realistically borrow. I am looking at putting a 10% deposit down on a 140k/150k house, but I am a bit worried I won’t be able to borrow the amount needed. Do lenders have a general rules that its 4x your salary or are some lenders more generous that others?

I earn £29,500 a year and have no outstanding loans or credit card bills.

I’m guessing I need to see a mortgage advisor, but before I do this I just wanted to get an idea if it’s realistic or not.

Any help would be greatly appreciated.

Thanks for thanks the time to reply

Sam

Ozzuk · 21 February 2017 at 5:54PM

There are plenty of online calculators that will give you an idea before you see an advisor. I tried a few and found them pretty accurate.

kingstreet · 21 February 2017 at 6:01PM

Here, have fun;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

https://intermediaries.virginmoney.com/tools/affordability-calculator/loan/141b484d-0dc8-428c-a9b7-9119842dc4e2

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

https://affordability.skipton-intermediaries.co.uk/

hazyjo · 21 February 2017 at 6:02PM

YBS are also good. Their calculator was pretty spot on when I went on to discuss with a mortgage adviser.

Jx

Windofchange · 21 February 2017 at 6:12PM

From a quote from HSBC I had a number of years back the answer is yes, but individual circumstances and all that. Most big banks will let you do an approval in principle application online and it takes about 5 minutes.

ReadingTim · 21 February 2017 at 6:14PM

Have a look at the online calculators from the UK high street banks to get an idea of what they might lend - it'll be some multiple of salary, but it'll be impacted by (amongst other things) the length of time you wish to borrow over, where you're buying, what you're buying, how large your deposit it, your occupation and previous credit history.

Your other outgoings and living costs need to be taken into account too - whilst you may not have any loans or credit cards there's things like gas, electricity, council tax, phone and internet, food, getting to work etc - banks don't like your mortgage being over a certain percentage of your monthly net pay. This may further reduce the amount you can borrow, or you might choose to borrow less and not have to live like a hermit for the next 25 years!

Whether or not this buys you what you want however, is a different question...

Adam182 · 21 February 2017 at 11:52PM

Its very much realistic, you should be good for 150k for sure, meeting with a mortgage advisor costs nothing so its win win - Adam

mije1983 · 22 February 2017 at 12:08AM

I got over 4x income last year when I bought so it's not set in stone. Like you I had no other loans or credit card debts so it should be doable.

Ithaca · 22 February 2017 at 10:30AM

A lot of lenders now work on affordability rather than just a strict multiple of salary. It helps if you have no loans or credit cards, but if you are spending a lot of money each month on e.g. railcards for commuting, or nursery fees for childcare, lenders will often take that into account,

Although on paper my wife and I have a good annual income (so on a 4 x multiple could borrow a lot) we spend a huge amount on childcare for 3 kids which leaves us with the same amount at the end of the month as someone on a much lower salary who doesn't have children.

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how much I can realistically borrow?

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