How much can I afford?

ravravrav

I'm on about 17k a year, but I have managed to save a deposit of 15k thanks to living at home with my parents.

I've been looking at properties under 70k, although I look at those over that range and wonder whether I should save for a year longer and look to get something that bit better.

On my salary, what would be a sensible choice property to look for, taking into account mortgage and so on. I know that I could roughly only borrow 4x my salary amount max - but if I save up a greater deposit (like 25k) maybe I could go for a 100k house?

Would appreciate your advice,

beecher2

A 75k mortgage would cost £439 at 5% over 25 years. Do you think you could afford that, as well as council tax, maintenance, insurance and bills?

ravravrav

What percentage mortgage to monthly income is sensible? 25%? no more than 30%?

diable

Is it still 3 X your salary for a mortgage if it is then you may come up short.

Pee

I would factor in what would happen if interest rates did go sky high, for instance up to 15%. If it would be manageable, albeit only if you ate beans on toast for every meal, then that's affordable. (Oh and the old style thread will have better options than beans on toast!)