How much can they borrow?

stebiz

I'm enquiring on behalf of a friend who is looking to buy his own house. He's on 16k, girlfriend on £11,500 and they have a car loan of £220 per month.

No other debts or arrears.

I know at one stage it was 2.5 x joint. Is that still the case please?

BitterAndTwisted

Mortgage-lenders each have their own criteria. That car-loan is going to reduce whatever they will be able to borrow but to get a sensible answer they should speak to a mortgage broker.

hazyjo

Try the calculator/form on Yorkshire Building Society. Usually fairly accurate as to what they'll lend.

Jx

dgtazzman

Keying that very limited information into 1 or 2 online calculators, around 75k,

kingstreet

Affordability is a much more scientific process than the old days of income multiples. At lower incomes, more of net income is take up with subsistence expenses so less is available for mortgage repayment.

At higher incomes, the opposite applies.

You need to factor-in issues such as childcare, maintenance, dependents and the term of the mortgage to establish what can be borrowed.

Finally, it's 100% of basic, but perhaps only 60% of overtime, bonus or commission. Benefits, such as child benefit and tax credits can also be taken into account.

I'd suggest talking to a whole market broker for an overview of the market.