Mortgage Confusion (First Time Buyer)

kingstreet

The only way to establish the full market possibilities is to contact an independent broker who will run all the different calculators for you and give you the highest outputs for consideration.

glentoran99

DanParks87 wrote: »

Thanks for the reply.


Yes I understand that I need to take into account and monthly commitments and have actually done so. Obviously I don't understand the complete workings of a mortgage lender, but I have done a fair bit of research into my own earnings, commitments etc. and this is essentially what I've come up with:

• Monthly take home pay (after tax) = £1,500 (slightly more than this, but rounding down)
• Monthly commitments for phone, car etc. = £250
• Approx monthly payments for bills like council tax, utilities etc = £290 (I've researched local council tax bandings and rates, average utility bills and even done quotes for home insurance)

Give or take a few quid that leaves me with £960 for mortgage payments, food and fuel.


But I'm being told that I can only borrow £100k over 35 years, which is £238 per month.


I know there's probably something I'm missing, but surely I can't be THAT far out that I'm misappropriating nearly £700 per month.

Where are you getting this interest free mortgage?

csgohan4

To be realistic OP, you need a better paid job or more saving's for a deposit.


The affordability rules are there to protect you and ensure you don't get into trouble.

ViolaLass

DanParks87 wrote: »

So I used the "Mortgage Best Buys" option from MSE, put myself down as a first time buyer, input my property value and what I wanted to borrow (£150,000 on a £162,000 property (which works out at about 93% LTV)) and I have LOADS of options popping up.

Those calculators are there to tell you what it might cost to borrow the amount you want, not how much you can borrow. You don't get to just borrow as much as you can think of.

csgohan4

ViolaLass wrote: »

Those calculators are there to tell you what it might cost to borrow the amount you want, not how much you can borrow. You don't get to just borrow as much as you can think of.

There's the issue there, people think it's cheaper than renting and therefore they think they can afford it. In reality no, it's the general overall picture of their finances and income/ deposit/ debts