What size mortgage?

crazyfrog339

Wonder if anyone can settle this for me...
Someone has suggested to me that for the £286 a month i pay in rent i could get a mortgage but does anyone know what size mortgage i would be looking at? I am young enough to have a mortgage over a 25 year term but the cost of my current rent is all i would want to pay per month so any interest charges would have to be included in this monthly figure.
Any ideas from anyone??

UK007BullDog

Around £40K to £45K I would say. Maybe even less depending on rate, your salary, your savings to put down a deposit, your credit rating....... Sorry dont do backwards calculations too well. LOL

UK007BullDog

Actually closer to £45K if going for a 6.5% rate.

£45,000 x 6.5% = £2925 divided by 12 months = £243.75

this would be interest only. With a calculator its not possible to work out exactly the repayment figures.

If you can secure a lower rate then you could borrow more.

Hope this helps.

Have you got any savings? What is your income and what is the property value?

beecher

Remember the added costs involved in buying a property too - solicitors fees etc. And then the added costs of owning - repairs, building insurance, council tax if it is presently covered by rent.

Put some figures into this mortgage calculator and see what it gives you.

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

crazyfrog339

Thanks for all that info.... It was a simple comment that had sparked my curiosity that made me ask for advice really and not necessarily any intention to get on the property ladder.

I'm not sure i'll ever be the kind of person to get a mortgage to be honest cos it all seems too scarey for me!:eek: I dont like the idea of continually throwing money away by paying rent to the council but at least i can sleep easy in my bed knowing that if my roof blows off or my windows cave in my repairs will cost me nothing and my insurance premium wont increase as a result of it!!:beer:

neverdespairgirl

It's not throwing money away, necessarily.

If you buy a place with a mortgage, you pay interest on the amount borrowed, as well as "buying" the place back with repayments on the money borrowed.

So if you can rent for less than the interest-only part of the mortgage, you are quids in - not only are you paying less to rent the house from the Council than you would from the bank, you aren't paying to maintain the place, solicitors fees, mortgage fees, etc!