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How much can I borrow

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mattdragon2
mattdragon2 Posts: 133 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 22 February 2010 at 9:26AM in Mortgages & endowments
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.

Comments

  • Typhoon2000
    Typhoon2000 Posts: 1,171 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Is this cryptic question? You bank has already told you the maximum you can borro after going through your finances.
  • phlash
    phlash Posts: 883 Forumite
    500 Posts
    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!;)
  • mattdragon2
    mattdragon2 Posts: 133 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 22 February 2010 at 9:27AM
    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.
  • 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

    Lee
  • 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?
  • Depends alot these days on what your monthly outgoings are aswell as what you earn.
  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    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 ForumTeam
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