Trying to buy

jackery

Hi,

I am a first time buyer and am looking at getting a property. The ones which are suitable for me are around the £195,000 mark however lenders are only willing to lend me £115,000 approximately making it £165,000 if I used the whole of my savings meaning I am still 30 thousand short.

I am currently earning £26,500 per year which is my basic salary. I have savings of just under £50,000.00.

My take home pay is in excess of £16,000 while still paying too much tax, and working out the mortgage values of :

£155,000 - 2.25% - over 30 years = £592 per year which I feel is affordable
Additional of approximate gas, electric, council tax and water estimated all to cost £250-300 approximately.

This would then cost £900 per month with £700 left over. I do not have to pay anything for driving to work due to the company costing fuel.

Why are lenders not able to look at lending money this way to assist First Time Buyers?

ACG

Most lenders have a cap of 4.5x income in place.
Also, you are assessing affordability based on 2.25% where as lenders are assessing it on around 6-8% to take account of when rates rise.

You may be able to get more than £115,000 but I think £145k might be a little too much.