Mortgage Calculater

fergus.dunne

Hi all,

New on here and to Mortgages so Probably some Stupid Questions here

Me and my Girlfriend are looking at Buying our 1st House. I have read all the Articles I can and she is going to see a Mortgage Adviser today to find out all the details. Still confuses me though

But I was just wondering on the How much you can Borrow, as I have seen it worked out 2 Different ways on the Mortgage Calculaters. One asks you for your Salary and works it from there and another one asks you how much you can afford per month, and both come out with a total different amount you can borrow, the one you put in your monthly affordability comes out as more you can borrow. if anyone could help on this?

The other one is what is the best sort of Mortgage I would be looking at, as in Fixed etc, and whether to pay Interest Only or Capital Aswell. My details are below and it is a Joint Mortgage. And also have a Deposit of upto 20K if need be. Not sure whether it would be better to save some of the deposit etc

Joint Mortgage
Salary 1 - 14500 - Female - Age - 21
Salary 2 - 17500 - Male - Age - 29

Deposit
Upto 20K

chinatown_2

Hi
Im sorry I cant help at all as we are also just starting to look for our 1st mortgage.
But would you be able to tell me where you found the mortgage calculator that said 'another one asks you how much you can afford per month,'.
Id be really interested as what annoys me is on the other calculators it works out a mortgage with repayments that are around £200 cheaper than what we have proved to be able to pay for 5 years in rented accomodation!

fergus.dunne

This is where I found it and on the How much can I afford Link and if i put in 600, then tells me I can have 96,000 Pound

http://www.natwest.com/personal02.asp?id=PERSONAL/BORROW/MORTGAGES

Where as if you go on ones that calculate it on your wages, it says we only Qualify for 76000

I'm trying to find out, if the one that calculates it on your wage is the correct one for how they asses it, and if the one where you put what you can afford, is a guide for yourself only and banks wont take that into consideration

C8LNJ

This seems to explain joint mortgages in simple terms - http://www.dowdingandmills.co.uk/h_maximum_mortgage_value.html

Being honest, your best going to see somebody as the range of deals they can bring to you could be vastly different again to what you find online. Go with an idea of how much you'd like to borrow though......a target so to speak.

As for which mortgage I (as a 1st time buyer) favour my fixed term.

fergus.dunne

That site tells you both, what I want to know, is there specific places that actual calculate what they borrow you based on what you can afford a month, or do they start off the normal way of calculating it on 2.5 your wages etc and then if don't meet the criteria, give you the option of calculating it on your monthly wage if they decide to do that.

PRINCE$$

That calculator showing affordability is just for your reference. At the top it states '...remember that the amount we could actually lend you will depend on your annual income and personal circumstances' so that comes back to the salary multiple. I dont think you'll find a lender who will disregard your income and lend you what you think you can afford. You should be able to borrow more than £76000 though.
As C8LNJ said you're probably best see a broker.

chinatown_2

These calculator sites are very odd. On the 2 types of calculators I come out with 2 totals £40k apart! Madness.

herbiesjp

A good rule of thumb is around 4 times your income.

However, most lenders will take into account other financial commitments you have outstanding and what kind of credit score you have.

The claculators are good for an idea, but they do not tell you if you are eligible for the deal/mortgage amount you want. Only going to the lender direct or going via a broker will you find out that answer