How much mortgage could i achieve?

[robic55]

Hello everyone

This is the first time I have considered buying my own property. I have fortunately come into a sum of money and I am looking to use 30K as a deposit on a house.

I have no idea about mortgages and was wondering what a mortgage lender would offer me with this amount of deposit. I currently only earn 18,500K a year.

Any information is greatly appreciated.

[Jeannie D]

As a rough rule of thumb, banks will lend up to three times single income, and two-and-a-half times joint income, but much depends on your financial history, credit score, and current financial commitments.

[Dan S]

Hi Robic55

That's very exciting news, and certainly good you've gotten past the main hurdle for first time buyers - the mortgage deposit. Jeannie D is absolutely right, but it can vary lender to lender. Try some of the online calculators scattered around google. Barclays has one of the better ones with an interactive slider.

In general though, with your salary you'll probably be able to borrow somewhere in the region of £80,000 to £90,000 with a 25% deposit. So in practice you could buy a home worth around £110,000 - £120,000.

If you have any more questions don't hesitate to ask. There are no stupid questions!

[ComareTheMortgageMarket]

Id tend to disagree with Jeannie D on that one. Depending on which lender you go to you could get around 4-5 times your income regardless of whether you are single or joint. The usual scenario is (not exact figures) 4.5 * single income OR 4 * joint incomes. Some lenders have a general income multiple, say 4 * for everyone whereas other have it stepped, say if you earn up to 15k they lend 3.5*, up to 25k 4* etc etc.

Easiest thing to do is have a word with a broker/adviser.

[robic55]

Thank you all for your responses. It is pleasing to know that maybe more than 3x my salary may be possible as I would prefer a property above the £100,000 mark. I suppose the next step is to meet up with a mortgage advisor to discuss.

Thanks again

[ComareTheMortgageMarket]

Well, 100k should not be too impossible for what you have as deposit and income. Any more questions you have could be easily answered on here too. Im sure there are a number of other brokers on here apart from me.

[Dan S]

You'll certainly be in the 100k club! Good luck. Chat to a broker.

[New Homes Expert]

£125k wont get you much except in the north.

Dont forget to look at mortgage best buys on certain websites!

[ComareTheMortgageMarket]

125k would get you plenty in the midlands - speaking with experience the average mortgage is around 100k here (well in my town and surrounding areas anyway)

[builder66]

Some places will give you 3.5 x income. Try the Halifax