What was your approved monthly mortgage payment vs salary/outgoings?

Capri84

Looking to see how high a monthly payment will be authorised. I know there’s a bigger science to it, but given basic information im wondering whatll actually be allowed. Calculators seem to give varying amounts. 

Between us we have £66k income (£3600 per month after tax), and about £1100 fixed outgoings (dds) at the moment. The only thing that would change would be adding the mortgage and council tax on once that all gets sorted. 

Looking at various things, for the house we would like to buy, we’d need between £950-£1100 per month mortgage agreed. To us its affordable, but obviously the bank have their own ideas. 

Just wondered if anyone has any rough figures they’d share? What percentage of ‘available’ money each month do the lenders deem ‘affordable’? 

Redwino222

What are your fixed expenses?  Will you still have them I. Addition to the mortgage payment?

Capri84

Current outgoings - car loan, child maintainance, car insurance, car tax, mobile phone, electric/gas, tv license, NowTV, broadband

all things I’d move with me to a house that I bought. Only things to add would be a mortgage and council tax. 

Redwino222

Have you used online affordability calculators- existing loans and child maintenance will impact affordability and I assume they make up the majority of the £1100 .

they will be different for everyone, so you are best running your own figures

Capri84

I’d read online that 28% was the figure of take home pay that should be used for paying for housing. Is that a figure that rings true? 

Redwino222

I am currently moving and it will change from 13% to 22%.  That will be comfortable for me, but I don’t have children or any loans.

Capri84

Redwino222 said:

I am currently moving and it will change from 13% to 22%.  That will be comfortable for me, but I don’t have children or any loans.

22% of gross or net salary?

Redwino222

Net salary.  After tax and pension.

katkatmachine

Our mortgage payment is 30% of our monthly income. 

MrFrugalFever

I’ve never understood how you can rent somewhere (that will never be an appreciating asset for the renter) for 50% of your net monthly pay and still get access to credit and loans in the thousands (enough for say a 5% deposit for a house), yet can’t access a mortgage for 20% of net monthly pay....it’s bonkers, especially as the mortgage is secured against an ever increasing value asset!

if you live on your own with one sole income, you either need to have an extremely well paid job, a windfall or live somewhere almost rent free to even get a sniff at the property ladder these days.

jumpedtheshark

Our mortgage payment is 26% net, with additional lending (same lender) that takes it to 38% net.  The additional lending was used towards a deposit on a business property.  The additional lending is being paid off on a shorter term, so I suppose the lender could have factored in that we could have extended the term, which would have taken it down a few % points.