How much can I borrow?

minisaver

I am looking to buy a house on my own in the next 6-12 months. I have a salary of 28K with monthly bonus which adds up to make my earnings around 33k annually. By the point I come to buy, I will have no other outgoings such as a car or credit card, so I am wondering on how much I will be able to borrow?

I'll be looking at 100% products as well as the option of saving a deposit and buying a little later on.

Any input would be much appreciated!

Thanks.

MortgageMamma

Hi Minisaver

On a 95% mortgage the maximum you could borrow would be around 4.7 x your salary. there are lenders that assess on affordability rather than income multiples on whch you could possibly borrow more but I wouldnt recommend it.

On a 100% mortgage, the average will be 3.5 - 4 x salary, possibly more with a particular lender for a longer tie in and dependant upon your credit rating.

Take advice from a broker when planning your mortgage, they will find the best mortgage for you at the right price, and some brokers will work purely for commission and no fee's.

MM

minisaver

Hi MM,

Thanks for your reply! Just to clarify, would my regular bonus payments be taken into account or just my basic salary? I guess I probably need to work on getting a 5% deposit if I'm to make the best of things then?

Thanks again for you help.

Minisaver