Mortage question for freind

My friend on £27k  inc bonus a year going for a flat with 1 bed Around 120 k will be able to get a mortgage his only high outgoing is car at 204 a month

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  • Brie
    Brie Posts: 9,298
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    Possible standard take home pay of what?  £20k?  So £120k is 5 times that so might be possible especially if there's a decent deposit to bring down the LTV.

    I would hope though that any mortgage provider will also take into account all the other outgoings that will be inevitable - food, utilities, water, council tax and all the bits and pieces one needs when one buys a place.  Obviously they'll also be looking at the credit history, length of time in a job, registered to vote.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • aayush
    aayush Posts: 1,278
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    well been advise service charge high for the unit but inc light gas water 
    24k is sal b4 tax 4200 is bouns
    so it is posbile then ?

  • Brie
    Brie Posts: 9,298
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    £24k before tax = significantly less after.  I used to calculate my take home as being 70% to include tax, NI, pension etc.  So £17k+ after tax meaning not quite £1500 a month.  Less £200+ for the car, £100+ for CT, say £50+ for service charge, £200 food, plus insurance, food, petrol, MOT, parking, broadband, phone, clothing, holidays etc etc.  So can your friend get a mortgage that won't charge much more than £600 a month?  Suggest friend puts all the possible numbers into a mortgage calculator and see what pops out.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • GrumpyDil
    GrumpyDil Posts: 1,565
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    You could always look at the mortgage calculator on this site but given current mortgage rates the numbers sound really tight to me. 
  • aayush
    aayush Posts: 1,278
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    link please
  • frugalmacdugal
    frugalmacdugal Posts: 10,077
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    Hi,
    aayush said:
    link please
    click 'Mortgages & Homes' at top of page.
  • ACG
    ACG Posts: 23,621
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    How much is the deposit? 
    It is potentially doable, but if it a 95% mortgage then I think it will be a struggle. 
    Even 90% could be a touch ask, especially if there is a service charge on the flat. 
    I am a Mortgage Adviser
    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.
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