Mortgage Monthly payments

Pegman

Is there anywhere I can find out how much a mortgage will cost me without actually applying ?

I'm due for some money as an inheritance and I want to know if using that as a deposiit would enable me to buy my own home.

I currently pay £650 a month rent, and would like to know what sort of mortgage amount that would get me.

clutton_2

find out what percentage of the asking price the Lender will want you to put down as a deposit; and then you can work out how much you will have to borrow from the Len der.... then you need to see what interest rate they will charge (and you may not get an accurate figure until you apply as 2 people applying to buy the same house may get different deals depending on their credit history and age etc) - but if you can then use the interest rate and loan amount to work out your monthly payments...

alternatively - talk to a good mortage broker...

becca0417

Use this:
http://www.guardian.co.uk/money/mortgage-calculator

HouseHunter2010

Pegman wrote: »

Is there anywhere I can find out how much a mortgage will cost me without actually applying ?

I'm due for some money as an inheritance and I want to know if using that as a deposiit would enable me to buy my own home.

I currently pay £650 a month rent, and would like to know what sort of mortgage amount that would get me.

Your mortgage is calculated via multiples of your salary, not how much you think you can afford. So, if you earn say £20k per year, the highest amount lenders will tend to give out would be £80k, 4x your salary. Whatever inheritance you come in to could be used as a deposit, so the max vaule of the property you could look at would be the £80k via the lender plus your deposit.

ILW

Also bear in mind that whatever figure you get now could be a lot more in three or four years time, unless you go for a very long term fixed rate.

Pegman

hmm I can see this is a minefield, I was hoping it would be on the basis of ability to pay rather than how much we earn !!

So the Bank wouldn't take into account we've been paying rent as high as £950 per month for the last six years then, and it would be a case of "computer says no" if it says we don't earn enough.

Based on the calculations here I'm looking at possibly £104,0000.which wont buy a one bed flat around here

Eric1

Pegman wrote: »

hmm I can see this is a minefield, I was hoping it would be on the basis of ability to pay rather than how much we earn !!

have you considered your ability to pay if the rate goes up by 1, 2... 5 %?

HouseHunter2010

Pegman wrote: »

hmm I can see this is a minefield, I was hoping it would be on the basis of ability to pay rather than how much we earn !!

So the Bank wouldn't take into account we've been paying rent as high as £950 per month for the last six years then, and it would be a case of "computer says no" if it says we don't earn enough.

Based on the calculations here I'm looking at possibly £104,0000.which wont buy a one bed flat around here

Unfortunately that's the way things work. Just because you can currently afford x amount in rent doesn't mean the banks will throw money at you. It's a case of saving a bigger deposit if your current income won't provide a large enough mortgage amount.

Pegman

Eric1 wrote: »

have you considered your ability to pay if the rate goes up by 1, 2... 5 %?

Thats whats frightening me, I'm only a PT postman, relatively fixed income, overtime is unreliable, so I'm very cautious, but my wife thinks we should do it, I would prefer to put the inheritance into a high interest account or pension for later on in life

sKiTz-0

Pegman wrote: »

hmm I can see this is a minefield, I was hoping it would be on the basis of ability to pay rather than how much we earn !!

So the Bank wouldn't take into account we've been paying rent as high as £950 per month for the last six years then, and it would be a case of "computer says no" if it says we don't earn enough.

Based on the calculations here I'm looking at possibly £104,0000.which wont buy a one bed flat around here

Which is why houses are overpriced, and why first time buyers have been priced out of the market for a long time and also why they must correct.

<sebb>

Pegman wrote: »

I was hoping it would be on the basis of ability to pay rather than how much we earn !!

The two things are not entirely unrelated!