how much can i borrow?

plzsm

hi
just after a ball park figure for advice if possible
i earn approx £50K pa and have a deposit of £150K
roughly what price house can i afford?
I was thinking i could afford £300Kish (with a £150K mortgage) but everything i seem to like costs more..
(i have no debts)

_Andy_

Depends on lender and credit history, could be between 3x and 5x income.

figgles

All depends on your credit rating, but you you can check out the various bank websites and many have "How much can I borrow" type facilities on there. On £50K though you SHOULD easily be able to borrow £150k, but again, each lender has their own criteria/income multiplier.

Try the First Direct web site, that has the facility for the how much can I borrow.

Conrad

3 - 6 x income, and each lender will vary.

As a broker I find it difficult to deal with borrowing limit queries I get. We have to establish which lender is most suitable in terms of your needs and expectations, which can take a few hours, and then and only then can we test thier DIP / score to establish the max borrowing limit. Then it may not be enough so it's back to square one. I dont know how other brojers deal with these enquiries which can suck in vast amounts of time for zero money - only a possibility the client will later do business and actully buy a home.

deefadog

Hi all, what about 2 wages from a married couple, is it just added and then 3-6 x or is there another ratio of the higher income x a and income z x b?

Thanks

figgles

Again, it vaires from lender to lender, as a ROUGH guide use 3 x joint income, but this is (and I stress) a ROUGH guide. Some lenders will do more, some less, some base it on different criteria completely.

deefadog

Thanks, i was just thinking about when we remortgage (not until next year).

Outstanding amount will be 90k (current valuation 220k) so LTV is good at the moment.

Salaries combined will be around 39k per annum (excluding overtime) which would bump it up to around £44k

So it looks like we would be in a pretty good situation with most lenders?

_Andy_

deefagod - that income multiple will be fine (assuming you haven't got a ludicrous amount of loan/credit outgoings)

deefadog

Thanks, no other credit apart form 2 x car loans (approx 3k outstanding). Outgoings are very MSE.

I am actually overpaying by £150 a month now, and hope to raise that to £400 a month next year, as the wife will be off soon with Deefadog junior number 2!

_Andy_

Ah you'll be fine. Congrats on the future DFJ!

deefadog

Thanks Andy!