How much would your salary need to be to afford a £650k house?

MalikkkG · 29 June 2013 at 2:25PM

first of all i'm 16 and not looking to buy a house soon.

However I've been looking at houses on sale and all the nice houses are around £650,000. I understand you have to take into consideration of how much you put down as a deposit etc. So for example I put down 65,000 how much would I have to be earning for this to be affordable and realistic

I know I'm only 16, I'm curious so please dont be saying 'you dont need to worry about this yet'

thanks

kloana · 29 June 2013 at 2:33PM

MalikkkG wrote: »

first of all i'm 16 and not looking to buy a house soon.

However I've been looking at houses on sale and all the nice houses are around £650,000. I understand you have to take into consideration of how much you put down as a deposit etc. So for example I put down 65,000 how much would I have to be earning for this to be affordable and realistic

I know I'm only 16, I'm curious so please dont be saying 'you dont need to worry about this yet'

thanks

Around £150k as a bare minimum. Ideally much more (£200k+).

However, very many lenders wouldn't lend anything like £585k on a 90% loan to value first time buyer mortgage.

I don't think anyone would say "you don't need to worry" - more like where on earth do you live, and what on earth are you planning to do for a living?

exarmydreamer · 29 June 2013 at 3:01PM

Wow, There's nothing like aiming high.:T

Seriously most people save and buy the worst house in the best street and do it up. Nice that your thinking about your future at 16, but do well at school and learn some DIY skills and you will be away.:)

Good Luck.

kirstypark · 30 June 2013 at 8:26AM

great to forward plan. I took out my first mortgage aged 18. As the above post says most people start small and usually house prices rise after a few years meaning they can sell and use the profit to put down as a deposit for a more expensive house, keeping the mortgaged part relatively the same.

Banks and building societies usually lend around 3 times your annual salary, but there are some flexible options with longer terms available, you need a good credit rating though. But it is more of a gamble now as in some areas house prices have gone down. also interest rates are low at the moment, but when they rise again it could double your payments. Good luck with your plans :T

Just been playing with nationwide online mortgage calculator - 585,000 borrowed over 30 years and paying 5% interest means you would be paying £3,419 a month back. Thats before other living costs...

FloppyDisk · 30 June 2013 at 10:41AM

Great advanced planning, I'm aiming for a similar sort of property but I'm not anticipating funding by such a large mortgage. I had a £50k deposit for my first property, and within 5 years or so when I'm ready to move on I hope to have at least 100k equity plus some savings. I would only want to live in a 500k plus house if I could have most paid off upfront.

sharp910sh · 30 June 2013 at 10:48AM

It won't be easy to move up the property ladder like the baby boom generation, as house prices aren't rising as fast.

VoucherMan · 30 June 2013 at 1:47PM

Cheapskates

I've got my eye on this one for my weekend visits to the capital.

If I could just get them to knock two or three zeros off the price :cool:

cod3 · 30 June 2013 at 2:24PM

VoucherMan wrote: »

Cheapskates

I've got my eye on this one for my weekend visits to the capital.

If I could just get them to knock two or three zeros off the price :cool:

The MSE-er in me just looks at that and thinks of the heating bill. This site has brainwashed me

kirstypark · 30 June 2013 at 7:49PM

It's all a bit grey, don't think much of the decor to be honest. But then, I am not married to a footballer. Love the address though - how about we go half each, voucherman? You can use it on the weekends we are in the country estate.

Secret_Saving_Squirrel · 1 July 2013 at 7:51PM

Hello,

Yes, the decor is quite depressing. I think I could find something nicer for 68 million....:j

MallyGirl · 1 July 2013 at 9:45PM

back to OP - you do it in steps. That was the ball park for our house when we bought it in 2005 but we had sold previous one for £417k MF. We weren't on massive salaries but could get a £250k mortgage for the difference. Bear in mind stamp duty of £30,000 etc.
Prev house was bought for £165k and totally renovated over 8 years - DIY is your friend if you want to aim for this sort of thing.

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How much would your salary need to be to afford a £650k house?

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