How much can i borrow?

MNM2903

Curreently have around 4k savings but will have 10-12k by march next year when im looking to buy.

Im a first time buyer and am currently on a wage of £22.5k per year. around £1500 per month.

outgoings are £300 for loans and other commitments like mobile phone etc.

im wanting to go for a new build and get the gouvernment help top buy scheme where they give 20%

Im just wondering if anyone has a ballpark figure that i would be able to borrow based on the above?

Thanks

Landofwood

You could probably borrow around 85k assuming good credit management, amongst other considerations. Try some of the calculators on lenders' web pages.

kingstreet

MNM2903 wrote: »

Curreently have around 4k savings but will have 10-12k by march next year when im looking to buy.

Im a first time buyer and am currently on a wage of £22.5k per year. around £1500 per month.

outgoings are £300 for loans and other commitments like mobile phone etc.

im wanting to go for a new build and get the gouvernment help top buy scheme where they give 20%

Im just wondering if anyone has a ballpark figure that i would be able to borrow based on the above?

Thanks

Use lender online affordability calculators to establish what you can borrow.

If not specifically mentioned on there, take 3% of the estimated equity loan into account, as well as credit commitments, ground rent & service charges, dependents, childcare costs etc.

Most lenders don't want to know about mobile phone costs and other outgoings as they use ONS averages for the size of household.

You'll be able to borrow 4.5x your basic annual salary plus 50% of any provable variable earnings after taking the outgoings above into account. Make sure you enter each item in its correct place.

As the Government has an HTB Equity Loan affordability calculator, you may find this has a lower output than a lender affordability calculator and vice versa. You then have to adhere to the lower output of the two.

MNM2903

Thanks for that, does anyone have a link to a calculator for this? ive googled it but theres loads and i just need to see a reliable one.

Thanks

kingstreet

You would need to choose one of the lenders offering HTB Equity Loan products;-

Nationwide
NatWest
Halifax
Santander
Leeds (4%)
Virgin Money (4%)
Barclays

are the most prominent ones.

Use 3% of the equity loan unless indicated otherwise.

Nationwide and Santander calculators on the intermediary site take the correct amount into account when you pick the Equity Share/HTB Equity Loan options.

The Government's HTB Equity Loan affordability calculator can be found here;-

http://www.plumlife.co.uk/Finding%20a%20Home/Can%20I%20afford%20to%20buy/Pages/default.aspx

see Equity Loan calculator link on right.