Amount?

RPN4X

Is there a link to calculate a potential amount I can borrow?

What does ONS stand for sorry?

kingstreet

Lenders have their own online affordability calculators.

Office of National Statistics.

RPN4X

Thank you, what is the average rate people get offered? I appreciate depends on circumstances, but just an idea?

rec0286

On HTB Mortgage Guarantee, the maximum LTI is 4.5 x and any credit commitments etc may reduce that.

If you pay your credit card off in full every month does this count as a credit commitment?

RPN4X

Can anyone recommend a good broker in Manchester?

Thrugelmir

rec0286 wrote: »

If you pay your credit card off in full every month does this count as a credit commitment?

Will be a minor positive factor in the context of the overall application.

Once your debts are clear. Consider opening a Help to Buy ISA. In essence it's free money for doing nothing. Will give you useful boost in terms of purchasing a property.

Rather than worry what lenders will advance to you. Focus on building some savings. Not just for buying the house. But also once you own a house. Ownership comes at a cost.

RPN4X

Thrugelmir, I can afford to put away around £500 a month, maybe more and hope to have deposit within the next few months, is it worth me opening a ISA?

Jhoney_2

RPN4X wrote: »

Can anyone recommend a good broker in Manchester?

Take a good look at your thread replies, OP

kingstreet

rec0286 wrote: »

If you pay your credit card off in full every month does this count as a credit commitment?

No. It doesn't.

audigex

RPN4X wrote: »

Thrugelmir, I can afford to put away around £500 a month, maybe more and hope to have deposit within the next few months, is it worth me opening a ISA?

Yes, the Help to Buy ISA is really worth it if you're about to save for your deposit. I wish it had existed 5 years ago.

Save up £1200 first, then start the ISA (the most you can pay in at once is £1200). You can then add £200 a month up to a maximum of £12,000, to which the government will add £3,000.

So add £200/month for 54 months (4 and a half years) and you'll have £15k, having deposited £12k

You should probably also open another ISA/savings account and pay your other £300/month into that (to make your £500/month). It just won't get the 25% top-up from the government.

Add the two together and that will give you £31,200 before interest. A nice little sum, especially once you add interest and doubly especially if you add any of your bonus or any future pay rises to this.

If you don't need £30-35k for your deposit, you could obviously choose to stop saving before the 4.5 years are up and use whatever you have you get the 25% bonus once you have £1600 in the H2B ISA, so there's no real penalty from buying as soon as you have the deposit.