Can I get a mortgage on a 23k salary?

OMAR

Hi,


I am looking at first time buying. I have a deposit of £30k.
What's the maximum all the decent lenders with decent rates will offer me? Is 100k mortgage achievable on this salary?

1. I have a loan of £135 per month with ZOPA. That's all my debt. Total to pay 6k.
2. I am looking at mortgage of 100k and house price of say 125k to 150k. Is this doable?
3. What would I be looking at in terms of payments for a 35 yr term?

dj1471

Put your figures into one of the online affordability calculators, such as this one or this one to get an idea of how much you can borrow.

kingstreet

Will the property be freehold?

If not, what are the ground rent and service charges? These reduce the amount you can borrow.

Assuming freehold and no dependents, childcare, student loans etc you can borrow upto £114,790 over 35 years from one high street lender.

The monthly cost will depend on the rate. Assuming you buy for £140,000 with £30,000 deposit over 35 years, you will be in the 78% LTV band which means the highest rate is likely to be 3.9% for a five year fix and that will be £480 per month.

OMAR

Those two calcs are only coming back with a figure of 70-80k? Ive tried Santander/NatWest with the links provided, but also nationwide and Halifax who are both coming back with the same figures...


are there any lenders who would accommodate me if I went directly?


HSBC? First Direct?


Or even somewhere like Post Office/Tesco who have good rates too?

kingstreet

Perhaps you are putting a number in a box you shouldn't Omar?

I think amn's message is clear. A broker knows what number to put in which box.

What you do with that information is entirely up to you.

jojo_1982

It may not make a difference, but try inputting a deposit of 24k and zero debt. You may actually be able to borrow more that way even though the LTV will be slightly higher

Thrugelmir

OMAR wrote: »

Hi,


I am looking at first time buying. I have a deposit of £30k.
What's the maximum all the decent lenders with decent rates will offer me? Is 100k mortgage achievable on this salary?

1. I have a loan of £135 per month with ZOPA. That's all my debt. Total to pay 6k.
2. I am looking at mortgage of 100k and house price of say 125k to 150k. Is this doable?
3. What would I be looking at in terms of payments for a 35 yr term?

Look at the situation from a lenders perspective.

£23k salary is around £1,550 a month.

So a £100k mortgage if rates were to hit 7% would cost you £639 a month. Which is 41% of your take home pay.

Your loan appears to have some years to run. So your committed outgoings then total £804. Or 52% of your income.

Sensible lenders may well consider that you are over extending yourself financially.

Where's the £30k deposit coming from?