1st time buyer (another....)

trumbo

I have done some looking on the net at how much I can borrow, just so that I have an idea and a couple of places have said upto £90,000.

I am single and earn £17,300 and have so far about £16,500 saved and am aiming for £20,000 or thereabouts by Xmas and no debt.

Is £90,000 realistic? or do these calculators say 'YES' and then when you approach said company they say 'NO'.

I currently save around £500 a month and the Mortgage repayments I have seen for £90,000 are between £475ish - £510 (for upto 5yr fixed repayment) so if this is true it should be affordable.

Ian_W

By my reckoning it's 5.2x salary which seems quite high to me. At one time lenders always based what they would offer on x salary but now many of them work on affordability, that's your income compared to your outgoings. On the basis of what you save a month you'd certainly have a better chance on affordability but don't forget you may have other expenses with a property that you don't have now, eg council tax [if you live at home], insurance for buildings and contents, service charge [flats] etc.

Suggest you seek out a local mortgage broker - whole of market and fees free are the watch words - see if friends or relatives have any recommendations. You could also put your figures through some of the calcs on lenders sites. Most have a "how much can I borrow" type of calc you can use.

THT & BoL.