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  • FIRST POST
    • jackery
    • By jackery 7th Feb 18, 12:53 AM
    • 2Posts
    • 0Thanks
    jackery
    Trying to buy
    • #1
    • 7th Feb 18, 12:53 AM
    Trying to buy 7th Feb 18 at 12:53 AM
    Hi,

    I am a first time buyer and am looking at getting a property. The ones which are suitable for me are around the 195,000 mark however lenders are only willing to lend me 115,000 approximately making it 165,000 if I used the whole of my savings meaning I am still 30 thousand short.

    I am currently earning 26,500 per year which is my basic salary. I have savings of just under 50,000.00.

    My take home pay is in excess of 16,000 while still paying too much tax, and working out the mortgage values of :

    155,000 - 2.25% - over 30 years = 592 per year which I feel is affordable
    Additional of approximate gas, electric, council tax and water estimated all to cost 250-300 approximately.

    This would then cost 900 per month with 700 left over. I do not have to pay anything for driving to work due to the company costing fuel.

    Why are lenders not able to look at lending money this way to assist First Time Buyers?
Page 1
    • ACG
    • By ACG 7th Feb 18, 7:31 AM
    • 16,690 Posts
    • 8,675 Thanks
    ACG
    • #2
    • 7th Feb 18, 7:31 AM
    • #2
    • 7th Feb 18, 7:31 AM
    Most lenders have a cap of 4.5x income in place.
    Also, you are assessing affordability based on 2.25% where as lenders are assessing it on around 6-8% to take account of when rates rise.

    You may be able to get more than 115,000 but I think 145k might be a little too much.
    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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