Likely Reasonable Mortgage Size

jayphe

Hello, hoping for a bit of quick advice. Fiancee and I are considering buying soon, need to understand how to calculate how far to leverage our finances. Both very lucky to be in full-time employment at 34k and 42k with house deposit pot at 32k, a seperate 5k moving expenses pot and seperate savings for wedding and emergencies. No debts at all. Savings pot for deposit increasing at 1.5k per month and house price falls helping us as well. Considering that children are likely to be on the agenda in a couple of years, what kind of considerations need to be given to how far to leverage? Is the most likely constraint going to be set by the mortage lender on LTV or income multiple, or is it some other measure that allows us to have a decent lifestyle with some money put away for emergencies? Thanks in advance for any help.

diable

What is the average price of property where you live as it will be easier to calculate as there is a vast difference in figures between say London and MK.

It does seem that you two are in a good position but restricted by the amount and the interest rates on loans offered by the banks at the moment.

jayphe

Hello diable, we're apart at the moment in Yorkshire and Surrey, but probably Surrey or Berkshire when we settle, comparitively expensive, but doesn't need to be central London commutable. No idea what the average is, maybe low 200's for somewhere with 2 or 3 bedrooms?