How much Mortgage can i really afford

recci

So just thinking a head here. How big a mortgage can a single man in his late 40s afford on 52k per year (in central Scotland) and still afford a semi-decent car and lifestyle? I have a flat I can sell but its only worth 95 to 100k and ill likely only have about 40k left when sold assuming prices don't crash soon. I mean would it be realistic for me to afford a small bungalow or detached house with a garden and garage etc.

Isthisforreal99

That's a how long is a piece of string question.

Define a 'semi-decent car and lifestyle' - that means differentbthings to different people.

Think you need to sit down and work out your monthly outgoings on a new mortgage, including your semi decent lifestyle costs and see how this stacks up against your take home pay.

What are the prices of these new houses you aspire to?

itsthelittlethings

Do you have any debt?

Emmia

https://forums.moneysavingexpert.com/discussion/6674530/how-much-mortgage-can-i-really-afford

It depends on your outgoings - for example do you eat out a lot, or get takeaways, ,or are you more into batch cooking and freezing things?

What hobbies do you have, how willing are you to adapt your lifestyle to move to this new property?

What is a "semi decent car"? To some this will be a BMW that's a couple of years old... Others will be fine with a 7 year old Ford Focus

Expectations on holidays/travel?

Any debt? Is the car on finance?

I think you would benefit from doing a budget to work out what costs you have / where your money goes. You could use a statement of affairs template to do this, as it covers all the categories...

https://www.lemonfool.co.uk/financecalculators/soa.php

itsthelittlethings

I'm going to say 3 x income. Plus whatever you have from your flat.

kingstreet

A lender calculator says - £260,000 maximum mortgage over 20 years.

A mortgage payment calculator says - £1,681 per month using a five year fix at 4.77% (upto 85% LTV.)

What would you feel comfortable paying each month? Use that to work out the amount of mortgage you should look at.

For example, each £1,000 you borrow costs £6.47. If you would feel comfortable paying £1,200 per month divide that by £6.47 and you will set your mortgage ceiling at £185,470. Add your £40k deposit to that to set your maximum property price at £225,470.

recci

A lender calculator says - £260,000 maximum mortgage over 20 years.

This is why i ask, that seems a bit to much for me, my take home pay will be about 3k or just over per month and I don't want to spend half of it on a mortgage. I have some debt but that will be getting paid off before i look at buying a new place and my idea of a decent car is a 4 or 5 year old BMW or something like a Lexis IS. I don't buy brand new cars so max i will be spending is around 18 to 20k on the car via a bank loan then I keep it for 5 to 7 years if not more. I think something between the 180 and 210k mark would be much more sensible for me than the max a mortgage calculator says i can get.

kingstreet

https://forums.moneysavingexpert.com/discussion/comment/82054164#Comment_82054164

Yes. That's exactly why I talked about what will be comfortable to you and how that varies from a lender calculator. As suggested earlier, you now need to prepare a budget and then apply the rate per £000 to the figure you have worked out to calculate the loan amount which corresponds.

RelievedSheff

We have always worked on spending about 30% of our take home pay on our mortgage repayments which leaves enough for holidays, cars and takeaways, etc.