FTB: Mortgage Advice

house_help

Looking for a bit of advice on the likely hood of getting a mortgage on possible flat purchase.

The details i think you might need are:

Current base salary: £21,460 + annual bonus (no idea what this will be but likely to be 10%+

I am a trainee/graduate accountant with a big4 firm, been in the job 6 months. My salary will jump significantly in 2 years when i become qualified.

I will have a 15-20k deposit. (Dependent on how much cash i will need to setside for legal etc fees). I have some existing debt - a £7k interest free loan (employer pays the interest) with repayments at £167 per month for next 3 1/2 years. Student loan of about 15K - repayments currently about £50 a month

Prices of flats i have been looking at are around 100-120K - would it be possible to get a mortgage of 80-100k on my earnings? How much would likely repayments be on the lower and upper of the price range assuming 15% deposit?

Many thanks in advance for any help offered

LisaT186

It probably will be possible to get a mortgage based on these figures but it will be at an income stretch. The current loan payments will be used deducted from your annual income before the multipliers are applied. Working on that you are probably looking at 4.9 x salary, based on a £110,000 purchase price, deposit of £16,500 and loan of £93,500. Affordability will obviously then be the big factor. You are probably looking at around £560+ per month (based on a 25 year repayment mortgage).

Best bet is to go to a broker who will carry out a factfind on you, work out the sort of rate you will be looking for, the best lender for your situation and one that will consider an income stretch. They will also look at an appropriate term for you which may reduce / increase the payments, depending on what is right for you.

Good luck.