Am I over stretching myself?

Toptom1

I'm a ftb I earn 28k with 20k deposit looking at around £500ish for 5 year fix. So looking at borrowing £110,000 for a £130,000 house. Am I being realistic?

Idiophreak

Who knows. Can you buy a house for 130k where you live?
Do you have decent credit?
Do you have other debts outstanding?
Dependents?
etc etc etc.

Will need to provide a fair amount more info for people to be able to attempt to answer your question...but you might be better off just putting the question to a mortgage broker instead....

Horseunderwater

Look at it from an interest rate of say 7% & see if you can afford it then. If you can, then do it if not don't. Rates will go up, but you need 2 B thinking 5 years down the line.

h1rs

I was in a similar position to you when I bought my first house in 2009. Interest rates will go up eventually but so will your wages most probably. If it does become too much you could always take in a lodger. My view is if you can afford to get on the property ladder you should take the opportunity. When interest rates do go up then your liklihood of being accpeted for a mortgage will reduce.

Paully232000

When we got our last two mortgages we did a spreadsheet of our outgoings and income, including everything that we spend in a month. Don't miss things out, even if they are small, like 'oh the TV licence is only a couple of quid per month, yearly hols etc'

Then work out how much you have left each month and is this realistic should interest rates go up, your BT bill goes up, elec/gas prices rise etc etc. and have you a little left in savings for if/when your boiler breaks down, your car needs some work doing etc

lee111s

I think you'll be fine.

I borrowed £105k on a 28k Salary and I've never struggled. Mortgage was £525 per month. I do have a lodger though, but I done that so I could still have a life while continuing to overpay on my mortgage.

Thrugelmir

h1rs wrote: »

Interest rates will go up eventually but so will your wages most probably.

Lenders will base any decision on the situation today, not what might be.

Idiophreak

Thrugelmir wrote: »

Lenders will base any decision on the situation today, not what might be.

...but you have to think about how you'd afford repayments with what "might be", not just on the situation today...

Peter333

I think it can be done on your salary yes, but you're not going to be rolling in dosh, and will likely struggle. Even the lowest rate would cost you around £650 a month, then there's all the insurances on top, and the money for repairs and maintenance.

I would not like to be taking on a mortgage this size alone, with £28K salary. JMO. I guess it can be done yes, but you won't be well off, and if you lose your job you will not get any help.

I would never buy a property in this day and age. Unless I could buy outright.

Good luck anyway.

h1rs

Thrugelmir wrote: »

Lenders will base any decision on the situation today, not what might be.

Obviously. My point is OP can afford today's mortgage rate and a product that lasts 5 yrs. When it comes to re-mortgage in 5 years time OP is likely to be in a better position. I'm just speaking from my own experience mind you.

Contemptuous

Peter333 wrote: »

Even the lowest rate would cost you around £650 a month,.

Not necessarily. I'm borrowing more than the OP, also on a 5 yr fixed product, for around £550pm. I don't think scaremongering is going to help the situation much!