Maximum Mortgage Borrowing Limits

JohnRinson

Hello! I first applied for a mortgage back in 2007 - the crazy days of 100%, sub-prime, interest only deals. I got a mortgage to buy a £200k house. My salary at the time was £20k a year.

In recent years circumstances transpired that led to me selling the house and renting a property for two years. I now need to buy a property again and thought I wouldn't have too much trouble. My earnings are a great deal higher now than back in 2007. Property prices have obviously gone right up since then, but I was amazed at how little it seems I can borrow now - according to several mortgage advisors I've seen.

I'm earning £100k+ now but - with a 10% deposit - it seems the maximum I can borrow is about £275k. There are no houses suitable for me in my area at that price, leaving me totally shut out of the housing market.

Yet I know plenty of people who do have mortgages. Indeed the reason I need to buy again is because the landlord is selling my rented property - for £650k, and the buyer is someone my age who I'm certain has a lower income than me.

It just feels crazy to me that now, on a six-figure salary, with zero debts, a perfect credit rating, I can't even buy back the house I bought as a 23-year old on a £20k salary!

I know this sounds a bit like a "first world problem" but, if this is the reality of today's mortgage market, how is anyone buying property and getting mortgages? Does this match others' experiences or am I doing something wrong!!!??

ACG

There must be more to this as I would expect you to be able to get well in excess of £400k if you were earning £100k p.a and then your deposit on top.

ACG

Do you have a football team worth of kids?
I have just checked on a calculator and £425k came up.

Harryp_24

saying your circumstances, Because something isnt adding up. Do you have children/car finance/loans ect?
Are you Self Employed?
Have you only just started earning 100k?
We need a fuller story to find out the actual reasons.

Thrugelmir

JohnRinson wrote: »

I'm earning £100k+ now but - with a 10% deposit - it seems the maximum I can borrow is about £275k.

You still need a deposit. Irrespective of your earnings. You need to save somewhat harder.

Mrs36

As the above poster asks, you need to give more info, is there any background debt/credit issues?

Or a bigger deposit?

JohnRinson

Thanks! I've never had any negative credit problems, have literally zero debt at the moment and my credit score on Experian is 999 out of 999. Any earnings have been around £60k, £75k, £85k in past years. Been on current salary for about 6 months. We do have four kids, one is over 18 though and has a job of his own so not dependent on us. Good to at least hear it doesn't sound normal! Thanks

ACG

The kids may have a little impact, but I would still expect you to be able to get more or less £400-425k.

Harryp_24

JohnRinson wrote: »

Thanks! I've never had any negative credit problems, have literally zero debt at the moment and my credit score on Experian is 999 out of 999. Any earnings have been around £60k, £75k, £85k in past years. Been on current salary for about 6 months. We do have four kids, one is over 18 though and has a job of his own so not dependent on us. Good to at least hear it doesn't sound normal! Thanks

How old are you?