How much am I likely to get lent?

noisedude

Looking at houses around £110k-120. I'm a teacher with a stable income of £21k this year and rising to £23k in September, in a secure post.

I can definitely put down 10%, possibly up to 15% depending on exact price.

My Experian score is 999 - I have no unpaid credit cards, no unsettled overdrafts and no loans beyond my student loan.

Does this sound viable? What sort of multiples are out there for a first time buyer right now?

opinions4u

noisedude wrote: »

Looking at houses around £110k-120. I'm a teacher with a stable income of £21k this year and rising to £23k in September, in a secure post.

I don't think any state employee should assume their post is "secure" in the current climate.

I can definitely put down 10%, possibly up to 15% depending on exact price.

My Experian score is 999 - I have no unpaid credit cards, no unsettled overdrafts and no loans beyond my student loan.

Does this sound viable? What sort of multiples are out there for a first time buyer right now?

The bigger your deposit, the more you can usually borrow as the risk to the lender reduces. It will usually attract a lower interest rate too.

Most lenders use an affordability model rather than an income multiple to determine how much you can borrow. While I would strongly suggest not borrowing more than four times your income I would expect you to be able to find a lender who will offer close to £100k.

Once you have a quote, ask them how much it would be rates went up to 10% and see if you can afford it then.



I'd suggest finding

noisedude

opinions4u wrote: »

I don't think any state employee should assume their post is "secure" in the current climate.

The bigger your deposit, the more you can usually borrow as the risk to the lender reduces. It will usually attract a lower interest rate too.

Most lenders use an affordability model rather than an income multiple to determine how much you can borrow. While I would strongly suggest not borrowing more than four times your income I would expect you to be able to find a lender who will offer close to £100k.

Once you have a quote, ask them how much it would be rates went up to 10% and see if you can afford it then.



I'd suggest finding

Thanks for the advice.

On jobs - trust me, when the budget cuts come, it won't be physics teachers getting the chop.

On affordability - sorry if I sounded naive, I take your point and I know what I'm getting myself into. It'd be considerably cheaper than my rent is now, and about £200 pcm more at 10%, should that happen. I will take advice from a mortgage broker/financial adviser but I assume if I fixed for a few years that I would have the chance to see a sea change in interest rates coming and prepare for it?

I wouldn't be paying the mortgage by myself, I'd have someone living with me, and yes, I have a backup plan for if that ceases as well!!

The real question, as I asked, is whether I'd be able to get about £95k, with said stable job and excellent credit rating? I could put the rest down in deposit. If that doesn't sound like something that's available then I'm wasting my time and won't bother seeing a broker and viewing houses. :eek:

cloudninety

I am only a FTB-wanabee (still saving for my deposit) but my 2p worth is to look at a few banks' websites as they often have mortgage calculators or info about what multiples they use. Obviously this is just a guide but will give you some indication of what mortgage amount you could expect to get (especially since you don't have a lot of outgoings for them to take into account).

Try Halifax to start with, I think I remember that they seemed to use a multiple of around 5.

milliebear00001

Hi there

I'm in a very similar situation (also a teacher on M1, about to go to M2). I have two kids and a non-working partner (who receives some disability benefits) so my multiples will be slightly different to yours, but my broker was reasonably confident that he could get me around £95000-100000 with a 20% deposit. So, I am looking at spending around £120000-125000 on a property.

If you can up your deposit, you'll be opening up a much bigger mortgage market.