Quick Question ....

Liliyanna

What kind of ball park mortgage would we be eligible for?


We have a joint income of £73,000

No Children (No plans to have any)

No Debt / Credit commitments of any kind

We both have clear 72 month credit histories, never had any defaults/CCJ's/Partially settled ac etc.

£30,000 savings



We've been looking in the £250,000 range with an expectation of around £1000 mortgage payments per month, would this be about right?

After reading a lot on these boards I thought I had a good understanding of this but when discussing plans with relatives and a friend recently they independently expressed surprise that we would be offered such a high mortgage. Needless to say I'm now doubting everything I thought I knew

We currently aim to save another £10,000 to reach the 15% deposit mark before looking for a suitable house so feel it would be a waste of a brokers time to approach them this early. Could anyone offer a general steer on whether my ball park figure of £250,000 is attainable or do my relatives know something I don't ?


Thanks in advance

Lily x x


.

mrstick

When we were using the Santander mortgage tools on their website for that income, we were getting about £350000 that they would give us.

libf

With no debts you should be able to get roughly 3X combined income, so that would be £219k mortgage, plus your £30k savings would give a purchase price of about £249k, yes. (Although you need to factor in solicitors fees, moving costs, any mortgage product costs, etc into that.)

Mortgage payments will depend on interest rate.

Malmo

Try using different lenders affordability calculators online to get an idea of the borrowing range you can expect. Your assumptions & figures aren't a million miles off and I suspect you'll be able to go further subject to criteria. Your figures aren't too dissimilar to our own and we obtained an AIP indicating borrowing for a purchase price upto 300K @ 90% LTV. In short, your relatives are off the mark.

Liliyanna

Thank you all for your speedy replies


I guess I was a little fazed by the opinions I was given as they came from trusted people who have a long history of buying houses/mortgages etc.

I'll calm my feathers back down and get back to saving the last £10,000

Thanks again

Lily x x

Landofwood

libf wrote: »

With no debts you should be able to get roughly 3X combined income, so that would be £219k mortgage, plus your £30k savings would give a purchase price of about £249k, yes. (Although you need to factor in solicitors fees, moving costs, any mortgage product costs, etc into that.)

Mortgage payments will depend on interest rate.

More like 4x.

kingstreet

If you want to pay no more than £1,000 a month the sensible thing to do would be to assume a mortgage rate and a mortgage term and see what you can borrow which will feel comfortable.

At 85% you're probably looking at rates round about 3%, so a mortgage of £211,000 at 3% over a 25 year term would cost that amount.

If you require a shorter term, the amount you should borrow would fall. Alternatively, a longer term would mean a larger possible mortgage.

Change the rate as well to see how increases might impact you and your "comfortability."

It's a lot more sensible to work from what you would feel comfortable paying, rather than an arbitrary lender affordability output.