How much could I borrow with these figures??

prophecy_grrl

Hi

Sorry if this is not the correct place to post, but I have a query re: mortgages if anyone here could please help?

I recently sold my house after the breakdown of my marriage and DS and I have moved in with my best mate till I can buy a new place.

I have seen some properties I like for the £85k - £95k mark.

I have approx £15k in savings from living frugally and my share of the equity in the former marital home. My income is approx £28k a year, and I have no debt other than approx £5k left on my student loan.

My question is this - Could I realistically afford to buy a £95k house? My previous share of the mortgage payment was approx £450 pcm and this is all I can really afford to pay. I have set up some bank appointments for tomorrow to see mortgage advisors but think being forewarned is forearmed.

Thanks in anticipation

p_grrl xxx

thegirlintheattic

Go to the website of a major bank or moneysupermarket and do a mortgage comparison, butting in your deposit and income/debts. This will give you a good idea of the rates for different products.

Spiggle

Hi prophecy_grrl,

Certainly looks doable through putting your numbers through halifax, first direct and nationwide. I suppose it will depend upon your credit record really.

If it's clean for the last six years first direct looked better than the other two.

Only other advice I'd offer is, as you indicated more than one appointment, make sure the banks you visit do not put hard credit searches all over your file. And remember that the advisors will be tied to offering only their own bank's products.

Good luck, certainly looks possible.

ETA: used £95k as your purchase price by the way!

All the best,
Spigs

ShALLaX

Definitely achievable if you life fairly frugally and don't have much debt. It's worth checking mortgage rates for your LTV and then putting together a statement of affairs to work out your income and expenses.