Mortgage advice please

sim_k

Hello,

I am a new user (but have been reading the boards for a while). My husband and I are looking to buy our first property and was just wondering whether we should speak to our banks or a broker. We spoke briefly to Abbey who said that it was possible for us to get a 275k mortgage but ideally would like a bit more.

Stats:
Monthly Income: We have a combined monthly income of approx £4000 (after tax); If it makes any difference, one brings £2700 and the other £1300
Savings: We have 10K in an ISA and 2K in another high interest savings account
Debts: None
Credit rating: Good

The houses we have seen in our area are ~ £300 - 350K.

Are we able to afford a mortgage of this value?

Thanks in advance for any advice

toonfish

£300k at 100% borrowing is going to cost you around £2000 a month - that's a big chunk of your income

LisaT186

Abbey are one of the most generous high street lenders when it comes to income multiples. Working backwards from your net income I would think that they are offering approximately 4.25 times your income. Can you really afford any more? It may be possible to stretch a little further but it is repaying it that is more the issue at this level. Work out you budget and give yourself a some room for interest rate changes and emrgencies and then if you really can afford more then arrange to see a broker to see what they can do. Good Luck