Realistic mortgage expectations

unusualname

Hi all,

I am utterly new to mortgages and the lingo, having just lived rent-free with my dad until now. But very recently I have been considering making the jump and investing in my own home.

I am 37, earn 36k/year, plus minor extras (e.g.: overtime/bonuses which might net me an additional £1k/year maybe), I have zero debts, no loans and have about £24k of my own saved funds which I want to use as a deposit on a house. This isn't all my savings, but a considerable chunk of it.)

I've only ever had two loans in my life, over 10 years ago, at £700 and £2100 each, and paid them off on time without any issue or incident. I have no dependants or financial commitments (unless a £27/mnth contract phone is considered as such!).

A work colleague suggested checking my credit score on noddle, so I did that and got a 5/5 rating.

I have thrown some information into various online mortgage calculators and have been advised that a mortgage of between £100k and £198k could be possible (so not overly helpful!).

I am eager to start realistically looking at some properties but really have no clue what price range I should be looking at. I have requested a "mortgage promise" from Halifax, but I don't know how long these take to process (some sources state up to two weeks).

So, my very general question is, based on the information I have divulged, what would seem a reasonable/typical amount a lender would likely offer me? What price range should I be setting my sights around?

Thank you kindly.

ACG

Generally lenders would look to lend between 4-5x your income.
As you have no debts and im assuming no dependents I would imagine you can get closer to the 5x possibly a touch more.

So I would be looking at around £175k

unusualname

Thank you ACG. Some properties that had already caught my eye were around £160k, so that's very encouraging.

Much appreciated.

amnblog

You should be using a mortgage broker to assist you, or you will trip up.

ACG

amnblog wrote: »

You should be using a mortgage broker to assist you, or you will trip up.

Thats a bit harsh. Im sure many people apply for their own mortgages and dont trip up - even first time buyers.

amnblog

I am more concerned with our original poster than the ones who went direct and got lucky ACG.

ACG

You make it sound like everyone will either get declined or make a meal of it unless they use a broker or get lucky.

amnblog

Some will, some won't. That is why we are in business.