How big a mortgage can I get?

ace_mcgraw

Hello

I'm very new to the whole house buying malarkey. I will shortly be getting married and my new wife and I will hopefully be selling her house and purchasing a new bigger one so we have plenty of room to fill!

Her house is likely to fetch approx £130k, and has no mortgage on it, which obviously puts us in a fairly strong position.

I earn £25k a year, with my fiancee earning roughly 8-9k or so. As this is the first time I will have bought a property, how much does that mean I'll be likely to borrow with a repayment of approx £500 a month?

Many thanks for any help to this clueless individual!

somethingcorporate

Have you not tried one of the many excellent mortgage calculators available on any banks website?

https://www.halifax.co.uk/mortgages/forms/minicalc/container.asp
https://mortgages.hsbc.co.uk/mortgage-calculators/?tab=how_much_can_i_borrow

2 to get you started.

kingstreet

If you use a reasonable historic rate of 6%, a 25 year repayment mortgage of around £77,000 should fall within your affordability criteria, £500 per month. Today's special offers would give you a lot more, but at the expense of possibly ruining your affordability later when rates go up.

With your deposit, you should be able to buy round about the £200k mark with that £77k mortgage and have a very comfortable existence. You could perhaps overpay your mortgage to pay it back quicker if you get a better rate than what we've assumed for the calculation above.

dimbo61

Have a look on a couple of lenders websites such as YBS and they have a caluclator where you put in your income and it gives you a rough idea.
You can also use "whatsthecost" to work out the costs of each deal offered