What size Mortgage could I get?

firsttimetom

Hi Guys,

I've been a long time lurker on the forums and you've given some great advice. I am hoping someone could help me out.

I was hoping someone could give me a rough figure on the kind of Value of a house I could get?

Heres a bit about me.

I'm in a relationship. Girlfriend is a Student. We are both very early 20's My income is as follows:

Employment 06/07: £13,000 (pay rise to £15,000 this year)
Self Employment: 05/06: Income of £19,000 on tax return. For 06/07 I had income of £24,000. Am yet to do my tax return, though can if it helps.

Deposit: £40,000. Will save about £1000 each month, so aim to have about £50,000 this time next year.

Location: Gloucestershire.

We aren't looking for a house immediately, but if something came up that was ideal we would be looking to buy. Could anyone give me a rough idea of what size mortgage we could get based on the above?

Many Thanks,
Tom.

Leon_W

Hi Tom

So if I read this right then you are doing two jobs ? one employed and one self employed. Latest years income would be £15k + £24K = £39K.

The employed income is readily provable and last years slightly lower self employed income is provable. On a mainstream basis with a deposit that size then 4 X income would be a loan of £136k. (Different lenders have different ways of calculating the maximum loan size so I'm just using an average)

Their could also be a case for self certifying as you say your latest years self employed income is £24k, but you have no proof, yet !. In which case the loan size offered could be larger.

All assuming you have NO debt and NO nasties on your credit file.

firsttimetom

Hi Leon,

Thanks for the quick reply. Very interesting. I am doing 2 jobs, and plan too for another couple of years at least.

I don't have any nasties or any bad credit that I am aware of. I have had 2 credit cards. One from the Halifax, which I have never used and cancelled. The lady in the branch basically pushed me into it. The second one i *thought* i was getting a debenhams store card (just wanted the 10% discount as it was a big order). Turns out I got a credit card. I missed the first payment (they never sent me a statement) and I then paid it off in full, they refunded the charges and I cancelled it.

Would this show up as bad credit and if so, would it affect the loan amount?

Thanks again,
Tom

JoeK_3

firsttimetom wrote: »

Hi Leon,

Thanks for the quick reply. Very interesting. I am doing 2 jobs, and plan too for another couple of years at least.

I don't have any nasties or any bad credit that I am aware of. I have had 2 credit cards. One from the Halifax, which I have never used and cancelled. The lady in the branch basically pushed me into it. The second one i *thought* i was getting a debenhams store card (just wanted the 10% discount as it was a big order). Turns out I got a credit card. I missed the first payment (they never sent me a statement) and I then paid it off in full, they refunded the charges and I cancelled it.

Would this show up as bad credit and if so, would it affect the loan amount?

Thanks again,
Tom

Nothing to worry about there with the card.

I think you could push your mortgage loan amount near to £200,000 and with the deposit that you will have, you should be looking for a house for around £249,000 to save on stamp duty.

To achieve this you will need the services of a whole of market mortgage broker.

JoeK

MortgageMamma

HOw much are you actually wanting to borrow? do you have any ideas? do you have kids? do you receive anything such as WFTC? what kind of a student it partner? degree? professional?