First time mortgager, help please...!

gt568

Okay dudes, the frau and I are looking to buy when we relocate to another area soon, but as I've (we've) never had a mortgage I was hoping people could help and advise a little....

I earn 38k and the wife 15k and are totally debt free with a deposit of 10k. What sort of ballpark repayment mortgage could we get with those figures? Do banks still lend at 3xannual salary or am I living in the past??

MTIA....

Caz3121

Is your £10k to cover fees as well?
Do you have a squeaky clean credit history

What sort of property prices are you looking at...eg what % do you think your deposit will cover...10%, 5%

If you are looking at 5%, then you are looking for a 95% mortgage then you may find there are fewer lenders to choose from

ACG

3, 4 or even 5x income is possible (depending on circumstance).
Your deposit is probably going to be the deciding factor here. You may get away with a 5% deposit but in the main you would need a 10% deposit - in which case your looking at a £90k mortgage for a £100k purchase price.

gt568

Credit history is good. Never missed a payment etc....

Don't get much for 100k these days though do you. Prices we've looked at are circa 160-180.

ACG

That doesnt mean you can not purchase with less than a 10% deposit but you do need to be whiter than white and everything else must stack up (ie good incomes, good jobs, long term employed etc etc).

ValHaller

gt568 wrote: »

Credit history is good. Never missed a payment etc....

Don't get much for 100k these days though do you. Prices we've looked at are circa 160-180.

Your mortgage potential is £160k to £210k based on income. It is your savings which let you down

gt568

ValHaller wrote: »

Your mortgage potential is £160k to £210k based on income. It is your savings which let you down

So what you are saying is bigger deposit required?

ValHaller

gt568 wrote: »

So what you are saying is bigger deposit required?

Exactly that.

kingstreet

Typically, you can borrow upto 5x your joint annual gross incomes, less the cost of any credit commitments, dependents, childcare etc.

However, this is based on you being able to put down a 10% deposit and cover the fees involved in property purchase.

If you want to borrow for about £200k, you're going to need £20k deposit and about another £3.5k on top of that for fees.

There are a few 95% products around, but the lenders are very selective of the applicants they accept. 90% products aren't much better on underwriting, to be honest.