60K deposit, 15K annual salary... Affordable Value of house

cashbackproblems

can you get someone else to go on the mortgage and then get a lodger to help with the mortgage? that will help you borrow more and something a lot of people do nowadays

Marvel1

cashbackproblems wrote: »

can you get someone else to go on the mortgage and then get a lodger to help with the mortgage? that will help you borrow more and something a lot of people do nowadays

IMO this is foolish and to me is worse than being a guarantor, if the person living there cannot pay for any reason, then it will also the affect the person named.

Wouldn't the named person be affected if they wanted any future credit as they are linked to the mortgage?

csgohan4

cashbackproblems wrote: »

can you get someone else to go on the mortgage and then get a lodger to help with the mortgage? that will help you borrow more and something a lot of people do nowadays

Who is this 'someone else'? Lenders only go on the now and DO NOT take lodger's income into account as it can change all the time.


If your thinking of parent's or relative, remember the golden rule, money and family/friends do not mix. They might pay a 2nd home stamp duty and what if they want to cash their half of the mortgage as they want a house themselves, children, marriage e.t.c? Or worse they lose their job, can you afford the whole mortgage?

kingstreet

marliepanda wrote: »

Usually 4 - 5 times salary. As a huge ballpark

That's a bit too high for the salary level.

On £15k, much of the income is taken up in subsistence expenses, leaving less to spend on a mortgage.

One leading high street lender's affordability calculator indicates a maximum of £58,380 over 35 years assuming no kids, credit, ground rent or service charges etc.

Maximum100

Thank you all so much for your response! Really appreciated. Been meaning to buy property for years, hence not touched the savings even for retraining! IV personally tried my best to save , scrimp, budget etc .

One option is, a family member has just a little mortgage left on their property ( very little). They can go on the mortgage with me , however I'm not too confident about their credit rating. Even though I will be able to solely manage mortgage repayments myself , if they happen to get into financial difficulties again, that will wreck my credit score for future reference.

Can't relocate to another part of country, intact trying to stay within a few miles of current location due to elderly family ( need to be close to them)

marliepanda

kingstreet wrote: »

That's a bit too high for the salary level.

On £15k, much of the income is taken up in subsistence expenses, leaving less to spend on a mortgage.

One leading high street lender's affordability calculator indicates a maximum of £58,380 over 35 years assuming no kids, credit, ground rent or service charges etc.

That's very nearly 4 and I did say 'huge ballpark'

Maximum100

Haha, the username was just random! Didn't realise it can fit in with my thread theme:)

kingstreet

marliepanda wrote: »

That's very nearly 4 and I did say 'huge ballpark'

That's why I said "a bit high" and not, "don't be daft..."

TBH I wrote it before I did the calculator and got more than I expected but couldn't be bothered to edit the text...

Maximum100

If not too much of a hassle, could you please give me a link to some mortgage calculator please? I can find just the very basic ones

spidereyes

From a really quick plugin in figures from each sites own calculators based on your salary and deposit on a term of 30 years;

NatWest 77k
Nationwide 70k
Leeds 85k
Halifax 68k
TSB 59k
Barclays 52k

So you can see there really is no set amount but there's a swing of £33k difference between the least and the most likely to be able to be borrowed.

Even still, even taking into account Leeds as the highest borrowing, with your deposit, you would still only be looking at a purchase price of £140k taking into account fees which is obviously significantly less than what you looking at.