How much do we need to earn to get a mortgage for 200k?

sugarpants_2

Round our area 2/3 bed houses are 200k. Dh works full time and I work part time.

Weve been renting since 2003 and SICK OF IT! WE really want to buy but are afraid we would only get a mortage offer of 100k

Anyone know how to get a mortage for 200k?

Ps/ We are in the process of clearing all our credit cards and debts so we can start a fresh with our new mortgage:cool:

bookduck

Depends n your deposit and the how much disposable income you have after your debts are paid off every month.

TBH, I would not buy now as prices are still dropping, guessing for at least the next 9 months

sugarpants_2

WE will have 10-15k deposit.
Whats disposable income?
We would be buying next year :money:

bookduck wrote: »

Depends n your deposit and the how much disposable income you have after your debts are paid off every month.

TBH, I would not buy now as prices are still dropping, guessing for at least the next 9 months

sugarpants_2

DO we need to pay all our debts? Our IFA advised us to pay all our debts off to make life easier when we get a mortage??

rocky_robin

Depends on a number of factors, some lenders base it on 2.5 X the annual salary for the couple others use a different formula for the maximum loan such as taking the higher of the 2 salaries etc

I think it's unlikely that you'd get lent the full £200K and most lenders will be looking at how much the property is worth and also what you can afford to repay (e.g. what are your other outgoings) rather than just what you earn

I would reckon that even if you were lent the full whack it would be around £1500 per month in repayments on a repayment mortgage

sugarpants_2

Wow £1500 a mth!! Eek. I can now see why the IFA told us to pay our debts of first LOL
Hopefully the house prices will fall 20k so house prives are around 180k:rolleyes: quote=rocky_robin;12602131]Depends on a number of factors, some lenders base it on 2.5 X the annual salary for the couple others use a different formula for the maximum loan such as taking the higher of the 2 salaries etc

I think it's unlikely that you'd get lent the full £200K and most lenders will be looking at how much the property is worth and also what you can afford to repay (e.g. what are your other outgoings) rather than just what you earn

I would reckon that even if you were lent the full whack it would be around £1500 per month in repayments on a repayment mortgage[/quote]

PasturesNew

For £200k to be doable, I'd say you need all your debts cleared and a £20k deposit plus buying costs (say another £2k). Then you'd need a mortgage for £180k and could look to see if you could get 4x joint salary, so you'd need to be earning £45k between you.

Lenders don't like lending to people with debts. Lenders don't like lending to people without a deposit.

How much do you earn between you at the moment?

boinging_2

Have a look on hsbc.co.uk under mortgages, they have a pretty good calculator on their site that you can play around with.

bookduck

Well here are rough calculations: Your are looking for a deposit of about 10% that is £20000.

So then you are looking for a loan of only £180000

The loan is roughly 3 times highest wage + the lowest wage, so if he is on £15000 an year and you are on £5000 . the problem is that you have debt - a car, cards, spaceship, and hols to pay which cost £5000 a year, so your actual income is is still £15000. Most will loan around 3 to 4 times of your total income which is ££45000 but may go up to around £60000.

Then ther are the solicitors fees and sundaries £1000 (give or take a few hundred) + stamp duty at 1% (upt to £250000) £2000

this site has a more accurate way of working things out http://www.if.com/toolsandcalculators/affordabilitycalculator.aspx