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First-time buyers - advice please
oxter
Posts: 173 Forumite
My son and girlfriend are looking to buy their first property. I've looked at the various mortgage option advice parts of this site but I don't see how much they can borrow. It used to be (x) times one salary plus (y) times the other. Are these days of judging ability to pay gone and you decide for yourself how much you can afford?
Charcoal have a calculator to tell you how much your repayment is on a chosen amount/interest rate, but I haven't seen a guide on how much they can borrow. Can anyone advise please?
Charcoal have a calculator to tell you how much your repayment is on a chosen amount/interest rate, but I haven't seen a guide on how much they can borrow. Can anyone advise please?
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Comments
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Each lender has different income multiples that they apply to the incomes. Some lenders also base a loan on their own affordability calculation. 3.5 times main income + 1 times second income or 2.75 times joint would be a good guideline - however there are higher and there are lower. What is important, is that whatever loan you can get agreed, that it is afforadable to them now and in the future.I am a Mortgage AdviserYou 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.0
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Good advice herbiesjp, I'll pass that on, thanks.0
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