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Help to Buy Affordability

paul101chich
paul101chich Posts: 11 Forumite
in Mortgages & endowments
Hi,

Any mortgage advisors out there who can help a very simple question.

I am looking to buy a house for £580k with HTB 20% equity loan. With my 5% deposit, the initial mortgage will be on 75% of the cost of the house. £431k. My salary is 107k and I have no debts apart from £2k on a £10k credit card.

Any thoughts on whether this is affordable from a HTB perspective? Their spreadsheet puts me at 48% for some reason (on their limit of 45%).

Thanks

Comments

  • kingstreet
    kingstreet Posts: 39,439 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can't proceed if anything turns red.

    You need to be inside 4.5 x income and 45% debt to income.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • paul101chich
    paul101chich Posts: 11 Forumite
    OK. Thanks. Option B is 40% so we will go with that.
  • kingstreet
    kingstreet Posts: 39,439 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The mortgage term, credit commitments, ground rent & service charges influence the debt to income output which is also based on a 4.8% mortgage rate.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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