What is the maximum mortgage I would be able to have?

TANZA_2

I start a new job in September on a salary of 20133. What is the maximum mortgage I would be able to have? I have a deposit of £25000 and have seen a house for £165000 but fairly sure I wouldn't be able to get a mortgage anywhere near enough to buy it. I don't have any debts.

CLAPTON

such a mortgage would cost about 900 a month ..have you worked out a budget that includes council tax, elec/ gas/ water / travel / food /socialising/ clothes / holidays /presents/ xmas

JoeK_3

I would say that you would be over extending yourself considering a mortgage of that size.

I would say that the maximum mortgage for a salary of that size is around £110,000.

Are you a first time buyer?
Are you are professional / degree person?

If your income is likely to increase in the next few years, lenders may look on you more favourably.

Have you considered a shared ownership property?

If you are unable to buy a property outright on the open market, then shared ownership is the ideal solution for you. Shared Ownership is a part buy, part rent scheme, which enables purchasers to buy a home in stages. Purchasers can buy an initial share between 25% and 75% of the value of the property and pay a subsidised rent on the remaining value of the property. Shared ownership properties can be provided by housing associations, housing trusts and local authorities. These organisations try be as flexible as possible with regards to the initial share purchased, but this may be as much as 50% of the market value at some of their developments.

A service charge will normally be payable to cover the cost of communal maintenance. The service charges payable can remain the same whatever percentage you own of your home and continues to be payable should you purchase your home outright where possible. You will need to have sufficient savings to cover the initial cost of home ownership: legal fees and stamp duty for example. You will need to be able to meet the costs of rent, mortgage, service charges and other associated outgoings.

As your income increases, you can buy further shares of your home until you could own 100% of the value and no longer share the ownership with the housing association or trust. The greater the percentage you own, the lower the percentage on which you pay rent. However, if you do not wish to buy more shares in the property, you do not have to. Obviously, the more you own, the less you pay in rent. And, if you can buy your home outright in the future, then no rent will be payable.

JoeK

TANZA_2

I am hoping to marry next year but my boyfriend can't sell his flat and I don't want to move in so thought I might be able to buy on my own and when he sells he can take over half the mortgage. What would interest only be on £135000=if I could get it. I am professional but just starting. I have a small house which I rent out-considering that my pension as I'm 10 years short of one. There is equity in that of about 45000 and I've got about 30000 cash. I've got an interest only on that but it's buy-to-let and as the rent is 100 a month more than that I over pay to pay off some mortgage.

JoeK_3

£135,000 x 6% = £675 per month, interest only

JoeK