higher borrowing than 3x needed

daveK_2

My daughter (first time buyer) wants to borrow around 100k over 25 years, for property approximately 110k. She has 10k for a deposit.
Her annual salary is 24,600. She would be sole mortgagee.
She has suggested going for fixed rate for at least 2 years.
Are her plans feasible?
Would be grateful for any advice and information.

Jay1b

Most mortgage lenders will lend 4x Salary no problem at all. Lots will lend 4.2, but generally i'd say if you go with a 4.2 your be paying a slightly higher interest rate. So 24,600 * 4 = 98400 + 10000 = 108400. Obviously i'm sure you'd lend her the extra £1600 or so that she'd need.

herbiesjp

daveK wrote:

My daughter (first time buyer) wants to borrow around 100k over 25 years, for property approximately 110k. She has 10k for a deposit.
Her annual salary is 24,600. She would be sole mortgagee.
She has suggested going for fixed rate for at least 2 years.
Are her plans feasible?
Would be grateful for any advice and information.

Her plans are indeed feasible, as long as the monthly payments are affordable and she has no other financial commitments in the background.

Also make sure she does not go over 90% as most lenders will start to charge a Higher Lending Charge over this level.

surfpam111

I am virtually in the same situation as your daughter - I have found the halifax to be very good so far. very up front about any fees. You can choose not to pay an upfront fee but have a slightly higher interest rate - check out the website which also has a first time buyers guide which is handy.

Pam

MortgageMamma

Very feasible in theory, can she afford the repayments? High street lenders will go up to 4.7 x salary these days.

daveK_2

Thank you all for your advice - very much appreciated.
Best regards
daveK

HGLTsuperstar

Am in a similar position (25K p.a. but twice yearly pay reviews), and was wondering what the multiples are on a 100% mortgage? Please no lectures about deposits etc, I'm just trying to do some playing with numbers for now!