Could you afford to buy your own house today?

Graham_Devon

Blacklight wrote: »

We're a couple earning £25k each (the average wage, apparently). We are happy to pay 50% of our income in rent/mortgage.

With a Lloyds 95% FTB mortgage at 4.99% we could afford anywhere up to £255,000.

So that's two nice first time, two beds. I could rent one out.

So if one of you lost your job, or became too ill to work, the other salary in it's entirety would be swallowed by the mortgage payment.

Sounds clever.

Dunno where you would stand with council tax, electric / gas bills etc, or that little thing called food and water.

Oldernotwiser

Assuming that many people on here are some way up the property ladder, why on earth would they expect a FTB to be able to come in at the same point?

Orpheo

We always base our household budget on the highest single income. The second income, mine, is a part-time one but it is fairly well-paid though as a primary teacher at the top of the pay scale.

System

Oldernotwiser wrote: »

Assuming that many people on here are some way up the property ladder, why on earth would they expect a FTB to be able to come in at the same point?

Same reason they expect the ladder not to apply to them and jump straight into an enormous house I expect.

The_White_Horse

but the house people are in now may not be their FTB buy. It may be their second or third home.

My house is my second. going by it's perceived value, I could buy it with a 10% deposit - but only just.

its stupid that someone on my salary (which isn't massive but well above the national average) can only afford a relatively average house in an average area.

Orpheo

Oldernotwiser wrote: »

Assuming that many people on here are some way up the property ladder, why on earth would they expect a FTB to be able to come in at the same point?

Which is why I said assuming a 25% deposit. A FTB can enter the property ladder at any rung provided that they have the correct deposit and sufficient income.

Orpheo

Joeskeppi wrote: »

Same reason they expect the ladder not to apply to them and jump straight into an enormous house I expect.

In reality the ladder doesn't exist. What exists are different prices, different deposits and different incomes. In my premise in my OP I have excluded HPI. The values are house price, 25% deposit and your income.

tara747

Blacklight wrote: »

We're a couple earning £25k each (the average wage, apparently). We are happy to pay 50% of our income in rent/mortgage.

With a Lloyds 95% FTB mortgage at 4.99% we could afford anywhere up to £255,000.

So that's two nice first time, two beds. I could rent one out.

OMG, that is insane!!!!!!!!! OH and I earn more than that and we would never dream of borrowing that much. :eek: 50% of your income on accommodation costs is waaaaaaay too much.

Oh and the BTL boat has sailed.

Really2

I will base it on my first house I purchased a 3 bed semi in a good area., I don't class my current house as a FTB house.

First house would be 2.9X joint with no deposit. Or 2.17 X joint with a 25% deposit.

I purchased my new house in 2008 with a 30% deposit, so yes I could have purchased it with a 25% deposit also.
But is 5 bed detached really FTB territory?

Generali

I could not afford to buy the house I am renting.

Purchase price was $970,000 I think.

75% mortgage = $5,300/month which is roughly what I net.

LL gets $1733/month in rent from me.