How to get a big enough mortgage?

debtaghh

Hi,

I'm just wondering how people can get big enough mortgages? Within a rough 50 mile radius of where I live, the cheapest 4 bedroom house is approx £425000. Even if I had a £50,000 deposit ( which I don't), I don't see how I would get a mortgage big enough 🤷‍♀️. I have three children with big age gaps and one is autistic and ideally needs his own room. 

We currently rent and pay a huge amount each month but I know mortgages cap it at maximum 5 x your salary. I just don't see how we will ever get a big enough mortgage. 

ACG

Generally speaking you are not going to get 5x income unless you either have very good incomes, are in a job that has a guaranteed pay rise structure (such as Doctors) or you have a big deposit (percentage wise). You are probably looking at closer to 4.5x income. 

There are no real figures to work from so it is difficult to see how far off you are from what you need. You probably need to start thinking outside the box:
Buy a 2/3 bedroom property and get an extension for example,
Maybe a house with a cellar,
Depending on the ages of the kids, I have seen a house which had a separate garage which had been converted into a bedroom/bathroom before now. 

I would probably try to find a property that is within your budget and see if you can make that work for you. 

debtaghh

Thanks. 

My husband's income is just under £50k. A 2 bedroom wouldn't work and we currently rent a 3 bedroom and we are struggling due to the big age gaps. Would the most be 4.5 x my husband's annual salary, if we had say a 30k deposit? 

Squeaky9

I think the thing is most people don’t go straight in to a 4 bed house as their first purchase. They start with a smaller property and build equity over the years and then move up to the 4 bed, which might even be on their second or third move up the ladder. 

debtaghh

I know, that is the issue we are now in. We are paying a huge amount each month on rent. I don't really know how we will ever improve our situation. 

theoretica

Another possibility to look into is if a property has rooms where the layout works to partition them to make more bedrooms and do clever things with furniture - maybe look at boats for inspiration on how a tiny room can work. 

debtaghh

That's a good idea, thank you very much. It doesn't really matter how big the rooms are but more just that they have their own space. 

Cheese1990

You may also consider a 3 bed that might have additional space downstairs I.e. a separate study or dining room that you could use as a 4th bedroom 

debtaghh

Thanks. I've been looking earlier and even a 3 bed seems out of our reach. 

[Deleted User]

It's usually inheritance. Do you know anyone who might die soon and leave you some cash, or property?

Then you will have a big deposit and only need a smaller mortgage.

SpiderLegs

If you want a 400k house you need at least one of -
A large amount of cash.
One extremely high salary.
two significantly high salaries.
lots of equity from previous house ownership.

Very few people can go straight from renting to a 400k house. If you aren’t one of them then lower your expectations.