Realistically - how much can i borrow (first timer)

andyrowson55

Hi,

Details:
24
Single
20k a year salary
35k in savings.
ZERO commitments - not even a phone contract. Pretty much all of what i earn gets saved other than supporting a car and eating etc but i live at home so that's mainly catered for.

I'd like to think i could buy a house on my own at some point in the next year or so.

I'm looking on here to see if anyone has been roughly in the same boat and what you've been able to achieve in terms of borrowing?

I've got a good lump sum i think which should help and i don't mind if it's over quite a few years more than average as i'm fairly young i'd say?

So what has anyone managed to borrow in a similiar situation? Have you found it easy going or really tough and wished you'd not gone so high or the opposite etc?


Appreciate this has been more than likely been asked before and the likely answer is 'phone a bank' but i'm not at that stage yet.

Thanks,
Andy.

_Andy_

C. 4x salary should be achievable assuming good credit history

Robert_Sterling_3

I will round that up for you to a loan of £100,000

andyrowson55

Is 5* salary still achievable then? So add the savings on and realistically i could look at a house for around £120k?

Or are we saying 4* plus the savings to give roughly a 100k house?

Peelerfart

Rough calculation, sure you've allready thought of this but,

20k per yer = circa net pay of £1300,

100K mortgage over 30 years at 4.99% = £415 I/O or £536 repayment per month.

this would leave you between £750 to £900 per month to live on.

Does that sound about right ?

dimbo61

Lets put this another way!
House you want to buy is say £120,000
deposit £30,000 or 25%
mortgage £90,000
Now the Post Office doing a 5 year fix at 4.15%
so taking a mortgage over 25 years with a 5 year fixed rate deal from the PO at 4.15% would cost you £ 482.54 a month.
At the end of the 5 years you would still owe £78,600 WITHOUT ANY OVERPAYMENTS ( 10% a year allowed PLEASE CHECK )
The other £5,000 in savings would be needed for the £999 fee,surveys,solictors,searches and setting up home costs GOOD LUCK

morg_monster

you said you don't "even" have a phone contract which immediately rang a bell for me (not a big one, just one of those little finger bell things you used to play at school). Do you have any kind of loan/credit card or other credit agreement? if not then you may not have a credit rating; something you will need to have if the bank are to lend you money.

koexelek

If the new legislation goes though ( re:the thread yesterday) £60000:eek:

andyrowson55

Sounds reasonable for repayments. My net pay is £1300 and those monthly payments (obviously bills on top) sound workable.

That's nice to know then that i could get that sort of money.

I tell a small fib - i've got a contact with Setanta which is about 11.99 a month. Does this count towards my credit!?

Anything else like car insurance i just pay in one go - so no problem don't have much of a history at all. Is this an EEEEK?

koexelek

andyrowson55 wrote: »

I tell a small fib - i've got a contact with Setanta which is about 11.99 a month. Does this count towards my credit!?

Anything else like car insurance i just pay in one go - so no problem don't have much of a history at all. Is this an EEEEK?

Sentana won't show on your credit file.
It will partly go against you on the credit scoring having no active credit, but you have everything else in your favour, so you should be fine

andyrowson55

koexelek wrote: »

Sentana won't show on your credit file.
It will partly go against you on the credit scoring having no active credit, but you have everything else in your favour, so you should be fine

Thanks. Is there any posts on here that are helpful in defining what would be good to get the credit ratings up? I guess i've got enough time to work on this now if i need to first.