How much would your salary need to be to afford a £650k house?

in Mortgage-Free Wannabe
11 replies 19.5K views
first of all i'm 16 and not looking to buy a house soon.

However I've been looking at houses on sale and all the nice houses are around £650,000. I understand you have to take into consideration of how much you put down as a deposit etc. So for example I put down 65,000 how much would I have to be earning for this to be affordable and realistic

I know I'm only 16, I'm curious so please dont be saying 'you dont need to worry about this yet'

thanks
«1

Replies

  • kloanakloana Forumite
    431 Posts
    MalikkkG wrote: »
    first of all i'm 16 and not looking to buy a house soon.

    However I've been looking at houses on sale and all the nice houses are around £650,000. I understand you have to take into consideration of how much you put down as a deposit etc. So for example I put down 65,000 how much would I have to be earning for this to be affordable and realistic

    I know I'm only 16, I'm curious so please dont be saying 'you dont need to worry about this yet'

    thanks

    Around £150k as a bare minimum. Ideally much more (£200k+).

    However, very many lenders wouldn't lend anything like £585k on a 90% loan to value first time buyer mortgage.

    I don't think anyone would say "you don't need to worry" - more like where on earth do you live, and what on earth are you planning to do for a living? ;)
  • Wow, There's nothing like aiming high.:T

    Seriously most people save and buy the worst house in the best street and do it up. Nice that your thinking about your future at 16, but do well at school and learn some DIY skills and you will be away.:)

    Good Luck.
    Mortgage: Aug 12 £114,984.74 - Jun 14 £94000.00 = Total Payments £20984.74

    Albert Einstein - “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
  • edited 30 June 2013 at 7:33AM
    kirstyparkkirstypark Forumite
    771 Posts
    ✭✭✭
    edited 30 June 2013 at 7:33AM
    great to forward plan. I took out my first mortgage aged 18. As the above post says most people start small and usually house prices rise after a few years meaning they can sell and use the profit to put down as a deposit for a more expensive house, keeping the mortgaged part relatively the same.

    Banks and building societies usually lend around 3 times your annual salary, but there are some flexible options with longer terms available, you need a good credit rating though. But it is more of a gamble now as in some areas house prices have gone down. also interest rates are low at the moment, but when they rise again it could double your payments. Good luck with your plans :T

    Just been playing with nationwide online mortgage calculator - 585,000 borrowed over 30 years and paying 5% interest means you would be paying £3,419 a month back. Thats before other living costs...
    mortgage 1 33,000. paid nov 2012 :D. mortgage 2 87,000 due 51,686.76 at july 2013, but then:new home and remortgage ... £101065.43:eek: now 74k
  • FloppyDiskFloppyDisk Forumite
    855 Posts
    Eighth Anniversary 500 Posts
    ✭✭✭
    Great advanced planning, I'm aiming for a similar sort of property but I'm not anticipating funding by such a large mortgage. I had a £50k deposit for my first property, and within 5 years or so when I'm ready to move on I hope to have at least 100k equity plus some savings. I would only want to live in a 500k plus house if I could have most paid off upfront.

    Mortgage Apr 18 £417,894 BTL Mar 18 £162,857
    Mortgage now -- £381,110 BTL now --- £161,710
  • sharp910shsharp910sh Forumite
    521 Posts
    Part of the Furniture 100 Posts Name Dropper
    ✭✭
    It won't be easy to move up the property ladder like the baby boom generation, as house prices aren't rising as fast.
  • VoucherManVoucherMan Forumite
    2.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    Cheapskates :D

    I've got my eye on this one for my weekend visits to the capital.

    If I could just get them to knock two or three zeros off the price :cool:
  • cod3cod3 Forumite
    764 Posts
    Ninth Anniversary 500 Posts Combo Breaker Name Dropper
    ✭✭✭
    VoucherMan wrote: »
    Cheapskates :D

    I've got my eye on this one for my weekend visits to the capital.

    If I could just get them to knock two or three zeros off the price :cool:

    The MSE-er in me just looks at that and thinks of the heating bill. This site has brainwashed me :o
  • kirstyparkkirstypark Forumite
    771 Posts
    ✭✭✭
    It's all a bit grey, don't think much of the decor to be honest. But then, I am not married to a footballer. Love the address though - how about we go half each, voucherman? You can use it on the weekends we are in the country estate.
    mortgage 1 33,000. paid nov 2012 :D. mortgage 2 87,000 due 51,686.76 at july 2013, but then:new home and remortgage ... £101065.43:eek: now 74k
  • Secret_Saving_SquirrelSecret_Saving_Squirrel Forumite
    4.1K Posts
    Mortgage-free Glee!
    ✭✭✭✭
    Hello,

    Yes, the decor is quite depressing. I think I could find something nicer for 68 million....:j
    Paid off mortgage nine years early in 2013. Now picking and choosing our work to fit in with the rest of our lives!
    Still thrifty though, after all these years:D
  • MallyGirlMallyGirl Forumite, Board Guide
    5.6K Posts
    Eighth Anniversary 1,000 Posts Name Dropper Intrepid Forum Explorer
    ✭✭✭✭
    back to OP - you do it in steps. That was the ball park for our house when we bought it in 2005 but we had sold previous one for £417k MF. We weren't on massive salaries but could get a £250k mortgage for the difference. Bear in mind stamp duty of £30,000 etc.
    Prev house was bought for £165k and totally renovated over 8 years - DIY is your friend if you want to aim for this sort of thing.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
    Any views are mine and not the official line of MoneySavingExpert.com.
This discussion has been closed.
Latest MSE News and Guides