What mortgage can I get on one salary

Annie-May_2

Hi
hoping someone might be able to give me a rough idea of what is possible for us.

We only have one salary in our house hold, of approx 24,000 (before tax)/year.

We recently had a baby (I'm now home with little one hence only having one salary to 'play' with) and now wish to own rather than rent our home.

First time buyers
24000/year
Will be able to save to 10% on a 150,000 home (which is the type of home we hope to look for)

What are our chances of finding a mortgage to fund this. What type of mortgage would that be?

I feel so confused by it all, and it's hard to know where to start. Advisors have bamboozled me in the past with jargon and made me feel small and silly :mad:. I need to feel more in the know of what I'm talking about.

Boozer

I am afraid that i do not think any lender will be giving you 5.5 to 6 times your salary for a mortgage at this moment in time, go to google and type in mortgage calculator and there will be some examples when you put in your salary and outgoings, i just did it quickly for your salary and with minimal outgoings it is between 65 and 90K.

Bomo

As Boozer says a realistic estimation is between 3-5 times your income. It is worth bearing in mind that any Working Tax/Child Tax Credits that you are getting would be taken into account by a fair few lenders alongside your partners income.

TMoose

For a rough and ready indication use any one of the Mortgage "How Much Can I Borrow" calculators on the web - some more detailed than others...

Simple :
The Guardian - multiple based :http://money.guardian.co.uk/calculator/form/0,,603157,00.html


More Detailed :
Nationwide - affordability based : http://www.nationwide-intermediary.co.uk/content/calculators/aff_calc.aspx

rinkydinkpanther

I'm sorry, but you can't afford a house which costs 150k, even if you do save a 15k deposit. No responsible lender will lend you more than 3 x salary, so 72k at most. The most house you could afford would be 87k.

A salary of 24k equals a take home of only just over £1500 a month, even if you don't make any pension provision. A mortgage of 135k at a below long term average rate of 4.5% would swallow up half of that. If rates rose to 12% again, that mortgage would cost £1350 a month.

Sorry.

LittleMissAspie

Whether it's responsible or not is another discussion but I'm sure they can find a lender to do 4x income. That's a mortgage of 96k plus the 15k deposit means they have 111k to spend. It may only buy a 1-bed flat but there you go.

It's sad that a man on a decent salary can't afford to buy a 2-bed starter home to bring his kid up in. Perhaps by the time they've saved 15k prices will be lower.

jockosjungle

Think the Post Office will do 4.5x on one salary, you'd still be some way off though. Can you go to a cheaper house?

R

Annie-May_2

oh thanks for your replies guys
I feel so upset. I really thought we'd be able to get some form of mortgage for a house somewhere!!

Of course we could go for cheaper, but round here we'd get squat. If the result of buying is bringing my new baby up in a tiny flat in some neighbourhood we don't like... well then I really think baby is better of in a rented accommodation.

Guess he won't know any different... it's just me. It feels so sad not to have a space I can chop and change and make into our home for baby!

*sad face*

chocsessential

Boozer wrote: »

I am afraid that i do not think any lender will be giving you 5.5 to 6 times your salary for a mortgage at this moment in time, go to google and type in mortgage calculator and there will be some examples when you put in your salary and outgoings, i just did it quickly for your salary and with minimal outgoings it is between 65 and 90K.

I wonder if you could post a link to that calculator please. I'm in a similar position to the OT and would like some approximate figures.

Oops, just saw the other links above.

maninthestreet

LittleMissAspie wrote: »

Whether it's responsible or not is another discussion but I'm sure they can find a lender to do 4x income. That's a mortgage of 96k plus the 15k deposit means they have 111k to spend. It may only buy a 1-bed flat but there you go.

It's sad that a man on a decent salary can't afford to buy a 2-bed starter home to bring his kid up in. Perhaps by the time they've saved 15k prices will be lower.

Well, it was lenders lending money to people at multiples of 4x income or greater that was a contributory factor to run-away house price inflation.

ixwood

Don't give up hope. There could well be a crash coming, so bide your time and save, save, save!