Mortgage borrowing

Scott1990

Hi everyone, this is my first post on here so go easy on me. Currently looking at saving and getting a mortgage with my girlfriend. We are both 22 and currently living with parents.

I have approx £9,000 savings and parents/grandparents can lend up to £40,000 for a deposit, my girlfriend has no current savings as she has just finished uni, while her family are unable to help.

I earn £21,000 a year and she earns £22,000 but we both have very good prospects and expect to increase this over the next 5/6 years.

As we have no debts between us and live a modest lifestyle, paying a mortgage shouldn't be too difficult.

What do you think the maximum we could borrow is? We both have excellent credit ratings. I want to know so we can have a better idea of what sort of house we can afford

Many thanks

Scott

UsernameAlreadyExists

Try one of the many online mortgage calculators?
for example this one?

(EDIT: I am not recommending them, that just happens to be who mine is with, so it was quick/easy to find)

Thrugelmir

Scott1990 wrote: »

I earn £21,000 a year and she earns £22,000 but we both have very good prospects and expect to increase this over the next 5/6 years.

We are a friendly bunch. Don't take any comments personally. Anything said or asked is based on the limited amount of information available.

Prospects mean little. Its your current wage that matters.

If I asked the question how much would it could cost you to buy the house you want. What would you say. Not your dream house I should add.

Currently you both live at home so are able to save hard. Could make all the difference.

Scott1990

Thanks guys, I have just done the mortgage calculator and it says 188-210, which is better than what we had initially been told (120k). So including deposit we could be looking at a house of 200k.

I mentioned prospects purely because I know we will both be earning more so paying the mortgage won't be a struggle.

It's hard to say what home we would like, because we aren't too sure at this stage, we don't even know where we would like to live. We just don't want to waste time looking at homes we can't afford and setting our standard too high.

Thanks

kingstreet

Sit down and work out how much you have coming in and how much you have going out. Do a budget planner with the help of friends and relatives who are already paying household bills

Set yourselves a comfortable monthly mortgage payment and use a reasonable long-term mortgage rate to work out what size mortgage you could expect.

For example, at 5%, every £1,000 you borrow costs £5.86 over a 25 year term. If you would feel comfortable paying £700 a month, that equates to a mortgage of £120,000. Play around with different figures to establish your rate, term and comfortable mortgage payment.