When can I get a mortgage?

Zyx

I just got my first job with a salary of £22,000 and started my first tenancy. It is a one year contract and I cannot wait to get out already as I learned to hate estate agencies.

When can I get a mortgage?
I understand that help to buy is a government scheme which could help me. However the maximum you can borrow is £600,000 and you'll have to pay 5% upfront which is not a problem.

What is the requirement to get a mortgage? How much more do I need to earn to get a mortgage of £600,000?

Dird

You'll need to earn a lot more + have a decent deposit unless someone died and left you £500k...why is the first aim £600k? :f

I think pretty much everywhere you'll need at least 5% so you'll need to save until then or do something like save 2.5% and ask family for the other 2.5% (but reading on here it seems this may affect your mortgage hopes).

Zyx

I already have the 5% deposit.

What do you mean with first aim? Do people buy more than once mortgage in their lives? I just thought I'd pick a house I want to live in permanently?

Can you give me a rough estimate on how much I should be earning?

Contemptuous

Zyx wrote: »

I already have the 5% deposit.

What do you mean with first aim? Do people buy more than once mortgage in their lives? I just thought I'd pick a house I want to live in permanently?

Can you give me a rough estimate on how much I should be earning?

£150k-200k..

PETIE

22,000 x 4.5 = 99,000

The maximum your likely to get

you have a 5% deposit? 5% of 600k? so you earn 22,000 and have a deposit of 30k and want a house of 600k?

jaxkesa

and can afford repayments of £3000+ a month?

Dird

Zyx wrote: »

Can you give me a rough estimate on how much I should be earning?

Yorkshire BCs 5 year fixed wants £3,296 in payments/month on a 25 year mortgage during the fixed period. It'd be higher in the variable period.
If you made £80,000/year you'd have £4,003.98 after tax + student loans (assuming graduate)
£70k = £3,595.64/month

Neither would be enough money to cover that mortgage payment + a family. Most people (I assume) buy small and then upgrade over time as they have more kids unless you live outside London where you can get a 3 bed for a lot lower.

Zyx

If you have a civil partner who pays the mortgage with you, is it easier to get one/a higher one?

Doesn't that somewhat half the earning requirements?

Dird

Zyx wrote: »

If you have a civil partner who pays the mortgage with you, is it easier to get one/a higher one?

Doesn't that somewhat half the earning requirements?

If it's taken out in both your names then I guess so (assuming she's on a similar wage). You're still not gonna get close to £600k though and I'd guess the joint mortgages would give you less than double because of the increased risk of a lover's tiff (then the one who stays not being able to afford the repayments alone).
If you're in London maybe look in the 200-350 range. Nothing to stop you remortgaging & moving if you have a 2nd kid & need more space.

libf

Zyx wrote: »

I already have the 5% deposit.

What do you mean with first aim? Do people buy more than once mortgage in their lives? I just thought I'd pick a house I want to live in permanently?

Can you give me a rough estimate on how much I should be earning?

Most people can't afford a £600k property when they first get onto the housing ladder, so they start in what they can afford and move to a bigger place as/when they need to or can afford to.

People also quite often need to move for work, or re-mortgage for a better rate. (I'll be on to my third mortgage when I move later this year; first one for a shared ownership 1 bed flat, then a re-mortgage on the flat and soon a mortgage for a 3 bed house.)

Chocolatefund

The amount that you can borrow for a mortgage depends on your annual salary. This is done by multiplying your 22k salary by up to 4.5.

£22,000 x 4.5 = £99,000 and this is assuming that you can borrow this max.

Some lenders may lend you up to x5. But you would need a squeaky clean credit record and no debts/minimal outgoings, plus a larger deposit.

I believe help to buy will only lend a max of 4.5