How much can I borrow?

ttaylor

I am here to ask how much I can borrow for a mortgage? I'm a single person on £22k a year. I think I may be able to borrow 5x my income which would be £110k, but I'm not sure.

Does anyone here know the answer, and if it is a full 5x income then are the rates worse than say a 3x or 4x borrowing rate? Also is it sensible to self-limit your borrowing to say 4x instead of 5x?

Thanks

shortcrust

There's a calculator on the site that should give you an idea:

http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

For a salary of 22k it give a likely range of 71,500 to 88,000. I've no idea how this compares with the real world figures. I've seen other calculators that give a give a figure of over 100k for a similar salary.

Vixstar

A lot of the banks and building societies who do mortgages have a "how much can I borrow" calculator on their sites which will give you an idea of the possible maximum each one may lend of you. Some of them even tak into account dependants and other outgoings (loans, credit, school fees, maintenance etc) and should give a more realistic figure if you are totally honest.

kingstreet

You'll get as much as 5x income from some lenders, net of your commitments and taking into account the mortgage term.

A 25+ year term will see 5x income from the lenders who go that high. A shorter term will see a lower maximum.