Mortgages affected by area?

ox1

Hello,

I currently have enough for a 30% deposit on a two bedroom flat in my area (Oxfordshire) which, even after prices have fallen for several months, is valued at £190,000. I'm in the unfortunate position of trying to buy in one of the most expensive parts of the UK and was just wandering whether mortgage lenders take this into account?

3.5 times my salary in other parts of the country might be enough to cover 70% of the value of the flat, but round here I'm conscious that on my humble teacher's salary the mortgage would be nearly 6 times my salary!! Which I'm doubtful anyone would lend me currently... Do mortgage lenders take ridiculously high house price areas into account?

At present, it's looking as though I'll have to raise a 60% deposit before I can be loaned enough mortgage to cover the value! The property ladder is looking like a distant dream for me and my friends (aged mid-late twenties), it's very depressing.

Can anyone reassure me?!

Thanks

koexelek

Geographical location does not come in to it as regards mortgage lending when we are talking income multiples/ affordability etc.

The only time a geographical location comes into it is if the lenders think you are buying in an " undesirable area" where they would struggle to sell it on if they had to repossess you. They might then refuse to lend.

There is no such thing as a " london/Large Town Allowance" on income multiples, unfortunately

herbiesjp

Or you could look at guarantor mortgages - get on the property ladder with the help of a parent?

But don't be in a rsuh to get on that ladder