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Need a calculation

sjc3
sjc3 Posts: 366 Forumite
in Mortgages & endowments
It is a long time since hubby and I applied for a mortgage and I am asking this on behalf of a friend. Say you were buying a flat for 280k and you wanted a mortgage over 25 years. What would your salary need to be to cover a 100% mortgage, 90% mortgage and 80% mortgage. Any advice much appreciated.

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    No 100% mortgages available.

    No longer as straight forward as specific multiples of salary as lenders use affordability based on income, expenditure, credit commitments, number of children, credit rating etc.

    For a rough idea work on 3 x income being needed so 93.3k in the scenario you mention.

    Depending on all factors it may be more needed or much less.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • pupsicola
    pupsicola Posts: 1,175 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    edited 24 March 2011 at 12:43PM
    Much better way to calculate it. Takes all expenditures into account in far more detail than when I applied for a mortgage years ago too. At that time it was based on around 3X salary also.
  • sjc3
    sjc3 Posts: 366 Forumite
    Thanks for your advice
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Flat cost £280K STAMP DUTY £10K on top
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