How much would lenders give us? were 1st time buyers

sugarpants_2

My hubby is on 30k and Im on 4k a year. We have 15k deposit how much mortgage would lenders give us?

We have no outstanding debts due to inheritence helped pay themall off recently:D

Anyone have a clue how much we'd get? Hoping to buy next year when house prices get slightly lower.

herbiesjp

You could use an average of about 4 times your income - you can get more and you can get less depending which lenders you look at, but that should give you a rough idea as to what prices you could look at once you include your deposit on top

Having at least a 10% depsoit will help your cause in getting lower rates, and minimising fees

Sooler

Regardless of how much lenders will lend you, you need to consider how much you can afford to borrow, as they aren't the same thing.

sdooley

If you keep £5,000 for the costs of moving, decorating, legals etc. Maybe keep £2,000 of that for emergencies.

That leaves £10,000. By next year may be only 90% mortgages available. So you could borrow £90,000. The great unknown is market interest rates - the Bank of England might cut theirs but banks may increase the cost of mortgages. Assuming 7% rates that would be £525/month in interest which is easily affordable on your salary.

By next year you might be able to buy something in Berkshire for £100,000!

Of course the banks may be in a better position by next year - even right now I imagine they will be able to offer you more than £90,000. But do you want to borrow more?

koexelek

Sooler wrote: »

Regardless of how much lenders will lend you, you need to consider how much you can afford to borrow, as they aren't the same thing.

Very true. The lenders will drop you like a stone if you run into difficulties.