How much do banks lend you for a mortgage?

sugarpants_2

We are in a dilemma

We are married with 3 children all under the age of 9 years. WEve rented for 10 years now and desperate to buy now.

How much are banks lending you. Ive heard its 3.5 times your salaries?

How much deposit would we need?

We live in Berkshire and current 3 bed houses are around 180-200k:eek:

Would it be possible for us to get a mortgage with 15k deposit and hubby on 28k a year and myself on 4k a year (child tax credits)

HELP!

We are thinking of leaving renting (we pay 900pcm) and moving back in with my dad (my mum recently died of cancer) to help save a deposit quicker and to help him out etc.

What would you do? Carry on renting and forget about mortgage due to high house prices and mortgage unreachable or move in with dad and save save save for a house in the next few years?

Desperate for some help guys.....Thanks

jetblack61

I would say you're going to need at least a 10% deposit, so if house prices are £180,000-£200,000, you'll need £18,000-£20,000 as your deposit.

As for how much the banks will lend you, that depends on a lot of factors I would say and without speaking to a mortgage advisor, it's hard to guesstimate.

What costs will you incur if you move in with your dad - additional travel, furniture in storage etc? You need to work out how much you can currently save versus the savings you could make by moving in with your dad.

sugarpants_2

Thanks for your reply

My dad and husband run their own company and the office is part of the house

So we would only pay my dad if we were lodgers so say £400 pcm. We'd save 1k a month if we were there.

jetblack61 wrote: »

I would say you're going to need at least a 10% deposit, so if house prices are £180,000-£200,000, you'll need £18,000-£20,000 as your deposit.

As for how much the banks will lend you, that depends on a lot of factors I would say and without speaking to a mortgage advisor, it's hard to guesstimate.

What costs will you incur if you move in with your dad - additional travel, furniture in storage etc? You need to work out how much you can currently save versus the savings you could make by moving in with your dad.

sugarpants_2

Also my kids school is within walking distance where as now Im spending £20 a week on fuel having to drive them as we live too far to walk.

sugarpants wrote: »

Thanks for your reply

My dad and husband run their own company and the office is part of the house

So we would only pay my dad if we were lodgers so say £400 pcm. We'd save 1k a month if we were there.

LittleMissKitty

Seems like a no-brainer with the move! I'd move in with your Dad - assuming there's space and you have understanding in place regarding how you pay when you're with him.

kingstreet

sugarpants wrote: »

We are in a dilemma

We are married with 3 children all under the age of 9 years. WEve rented for 10 years now and desperate to buy now.

How much are banks lending you. Ive heard its 3.5 times your salaries?

How much deposit would we need?

We live in Berkshire and current 3 bed houses are around 180-200k:eek:

Would it be possible for us to get a mortgage with 15k deposit and hubby on 28k a year and myself on 4k a year (child tax credits)

HELP!

We are thinking of leaving renting (we pay 900pcm) and moving back in with my dad (my mum recently died of cancer) to help save a deposit quicker and to help him out etc.

What would you do? Carry on renting and forget about mortgage due to high house prices and mortgage unreachable or move in with dad and save save save for a house in the next few years?

Desperate for some help guys.....Thanks

Minimum deposit will be 10%, plus you'll need another £2.5k+ on top for fees and stamp duty.

Lenders will go as high as 5x income for a top credit scoring applicant. However, that will be decimated by having four dependents (thee kids and a non-working spouse).

Using the Halifax online affordability calculator gives an "A" pass response of £109,000 over 25 years for your circumstances. This assumes you have no ongoing credit commitments. As a sole applicant with no dependents your husband would command a £140k mortgage, so the deduction for the dependents is £31k.

Buying currently appears unrealistic.

sugarpants_2

Hubby is taking over my dads company this year and he is gonna give himself a pay rise too In a couple of years Im going to be returning to work as my youngest will be in preschool etc. So I will bring in another wage too by the time we apply for a mortgage

I hate the term 'non working partne'r as I consider being a mum to three children the hardest job Ive ever done! :mad::rotfl:

sugarpants_2

Bumping this up for some advice from weekend forum-ers :j

Yorkie1

Kingstreet's advice is sound.

motherofstudents

Sounds like moving in with your dad might be a good option for the foreseeable future. If he's happy with it and you can save a large amount then it seems the best option open to you. If you can save 12k a year that will give you the deposit you need x however many years to get the full amount, and the more you can save, the better. Keep an eye on interest rates too as any increase will push up your mortgage costs. Sorry about your mum too.

johnnyredgate

Is there any way you could adapt/extend your dad's house to provide 2 homes and in effect pay a mortgage to your dad. Obviously this would totally depend on your dad's view of this and the house layout, space available to extend, etc but if feasible may be an affordable way forward to own your own home?