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How much can I borrow
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mattdragon2
Posts: 133 Forumite


Hi,
I have a deposit of 20k.
I was wondering what would be the most I should look for when buying a house?
I was thinking 140-150k max. Does this sound reasonable? The bank said I could borrow max of 130k but of course that doesn't mean I might be allowed it though.
Thanks.
I have a deposit of 20k.
I was wondering what would be the most I should look for when buying a house?
I was thinking 140-150k max. Does this sound reasonable? The bank said I could borrow max of 130k but of course that doesn't mean I might be allowed it though.
Thanks.
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Comments
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Is this cryptic question? You bank has already told you the maximum you can borro after going through your finances.0
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Refer you to here where I just typed the below, maximum is not necessarily the right question:
http://forums.moneysavingexpert.com/showthread.html?t=2284929
"Regardless whether 'some' lenders might consider this income, there are more questions to ask oneself than discovering the theoretical maximum that a lender will lend.
What is the OP's future earning power? Is £25k a ceiling? IF it is, then the multiple probably is not sensible.
Will there be any other pulls on the finances in a couple of years time, that aren't in the budget now?
The main high street banks are offering him those amounts for a reason, sometimes that should be listened to over and above what a single lender might be prepared to do. Its akin to selecting the cheapest option on a comparison site, it just means there are catches later that end up costing you more.
If you have a much greater earning potential then it might not be a problem, but how much money will you have left for a rainy day or will you have ploughed it all into the deposit in order to get to the 25% deposit mark?"I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
No its a serious question. They didn't go through my finances, they just asked how much I earned and said the max was 130k. Didn't ask how much deposit I had.
I was wondering if a 150k house is too much out of my price range with only 20k deposit.
Just looking for opinions for anyone who has been in a similar situation.0 -
Hi mate,
with a 20k deposit, with combined salary of 28k you will get a mortgage between 135k-145k that would be my guess :T
Lee0 -
From what the guy said at the bank, it appears to be around 4.5x my salary.
Is that normal for a bank to lend that high?0 -
Depends alot these days on what your monthly outgoings are aswell as what you earn.0
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mattdragon2 wrote: »From what the guy said at the bank, it appears to be around 4.5x my salary.
Is that normal for a bank to lend that high?
Its irrelevant, you should be focussing on what you can afford (now and in the future).Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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