Are we classed as FTB?

Sarah_Jane_10

Wonder if anyone could help, have a few questions:

We have just sold our house and have decided to rent for at least the next 6 months. When we come to buy again would we be entitled to FTB deals?

Also, I am a teacher earning £21,700 plus an additional income of £4,200 for a part time job I do too. My husband earns £21,000 and we have 2 children. If we had a 5% deposit would it be possible to get a mortgage for £200,000? We have one loan that costs us £220 a month with Egg and that is it as we have just paid all other debts off with the money we made on our house.

Any advice would be great.

Pal

There are no such thing as FTB deals any more. All mortgage lenders off good deals to any new customers, and you would qualify for those.

£200,000 looks highly unlikely. The real question though is "If you got a mortgage for £200,000, would you be able to afford to pay it back if interest rates went up any more."

Repayment on £200k would be £1200 - £1300 (ish) a month. Can you afford that? What if it went up by another £100 a month?

Sarah_Jane_10

Thanks Pal, we would need to seriously consider affordability etc...

How much do you think we would be able to borrow? We have a good credit history. Is there particular lenders who do deals for teachers?

cath-w

Try this mortgage calculator. Note it is only a very rough guide.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

You can put in the amount you want to borrow, the number of years of the loan and the interest rate. It will give you a rough average on what you can lend.

Usually you can borrow 3 times the wage of the higher earner and 1 times the lower earner. In your case this would amount to approx. 100k. However, some banks are now lending 5 times salary as house prices are so high. I would not look at what you can afford to borrow, but what you can afford to pay each money (especially if the interest rates continue to rise).

Try out the web mortgage calculator and get some rough figures. Then go to your current bank and ask them for advice as to what they will lend you etc. This way you can see what you can borrow and what you can afford. I am not suggesting you use your current bank for a mortgage as you need to shop around for the best deal. However, as you are already a customer it will be easy to make an appointment to see someone.

C.

Sarah_Jane_10

Thanks Cath.

I know we could easily afford 1000 a month (not far off that in rent at the moment).

I have used the nationwide calculator and that is showing they would lend us 175,000. We would definitely want more than a 100,000.

Reading through this forum it seems that NR, Abbey and Nationwide would consider lending us more. Would I be right?

Pal

No idea. Why not give Payless a call. He doesn't cost anything and some people seem happy with his services.

DiggingOut

Payless is on holiday right now, so is MortgageMan (London & Country), I think.

Sarah_Jane_10

Can anyone advise on this...

regardless of how much we can afford, how much could we borrow

Salaries - 25,836 and 21,000 with a loan repayment of 220 a month

I am confused by some of the calculators on websites!
Thanks