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RE: Mortgages

gymbunny_3
gymbunny_3 Posts: 13 Forumite
in Mortgages & endowments
Hi

I am in no position yet to buy, but as a long term goal want to own a property of my own.

Can you tell me if you have recently applied for mortgage what is the amount the bank has lent you in terms of salary x.

I am currently on £40K so wondered how much I would be able to borrow. ( Have got debts to pay off first - so this is a very long term goal!)

Thanks :j

Comments

  • spadoosh
    spadoosh Posts: 8,732 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    type 'how much can i borrow' in google and youll get a few calculators that should show you a very rough idea.

    There isnt a standard anymore its more a case of risk assesment. So improve your credit ratings before anything!
  • The_J
    The_J Posts: 1,250 Forumite
    I'm going to go with 160k. How's that?
    The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    The_J wrote: »
    I'm going to go with 160k. How's that?
    Too little....I'm going for £200,000 @ 4% interest only. It'll only cost £154 a week from £568 take home pay that's only 27% of the OP's take home pay. Plenty left for saving to pay off the capital and for spending on everything else.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • ACG
    ACG Posts: 24,744 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    If you work to 4x your salary thats usually a good guide.

    There are exceptions where lenders will offer you more or less, but i would say work to 4x, if you need a little more then it could be possible. You then need a minimum 10% deposit really.

    So £40k x 4 = £160k + £16k = a purchase price of around £176k.

    You should also put aside some money for Stamp duty, solicitors, the admin fees etc, £3-4k should more than cover all of that.
    I am a Mortgage Adviser
    You 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.
  • gymbunny_3
    gymbunny_3 Posts: 13 Forumite
    edited 1 May 2012 at 3:46PM
    Hi

    Have to clear my credit card debt before I start thinking about mortgages.
    Have the banks got a lot tighter. What would be the maximum debt they would allow before giving a mortgage to someone with the above financials?

    Thanks
  • gymbunny_3
    gymbunny_3 Posts: 13 Forumite
    Hi Guys
    Would you be able to help me with the above?
    Thanks x
  • ACG
    ACG Posts: 24,744 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    It varies from lender to lender.

    If you have existing loans, then they would deduct that from the maximum they would lend (different lenders calculate this in different ways).
    I am a Mortgage Adviser
    You 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.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is there a usual way of dealing wth outstanding student loan (from the SLC) in their calculations?
    Free the dunston one next time too.
This discussion has been closed.
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