Mortgages- how much do people actually borrow?

reubenpeckham

I'd be curious for to see the results of a little mini-survey on this one.

Lenders seem to be very keen to offer frighteningly large sums of money (eg upto 5 times salary)- which seems slighty made. However, in reality what do people borrow?

Does anyone have any idea of the typical range of borrowing that someone earning, say £45k, partner not working, and a 25% deposit might borrow?

I appreciate that there are many other variables that need to be thrown into the equation, but, in general does anyone have any idea of the typical level of borrowing?

Robert_Sterling_3

Up to £150,000 might be prudent.

Fairdo_2

Difficult one to ask.

You're right, there are so many variables to throw into the equation. However, pretty much from the top of my head, therefore, not necessarily accurate, thus not ammunition to request a public hanging for.

The capability of many lenders tends to allow people to go for approximately four times 1st applicants salary, allowing £45Kpa earner with NO Loans outstanding and 25% deposit £180000.

However, in reality, someone who has built up a sizeable deposit like 25% and managed to rent for example, would be likely to be able to afford that level of borrowing comfortably. Many that have this capacity do not go near their limit and opt to borrow £135,000 to £160,000.

Bear in mind this is rough, but probably reasonably realistic.

Obviously main concerns would be for sustainable affordability and all parties have to take responsibility for what that is expected to be.

Poppy9

Wow that's a lot to borrow especially if interest rates rise.

When I bought my first house with a 10% deposit it was 2.5 times the 1 salary and just 1 of the second salary. We were glad of this limit when 1 of us got made redundant and interest rates reached 15%.

With property prices high and talk of a crash I would not over commit with a mortgage. The more you borrow the higher your mortgage protection payments in case of ill health or redundancy etc.