Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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ok well i've been trying to figure out exactly how much i'd need to get a smallish house (2 bed i'd say).
i earn 31k p.a and at the moment my girlfriend is on apprentice wages but will be on about 20k once qualified.
how do mortgage companies go about deciding how much money you can borrow? and how much would i expect to pay back (rough amount) monthly or say a 150k house?
i really do get confused when talks of mortgages come up and tend to just ignore it all  but i think it would be a good thing to do in a couple of years or so.
any advice or tips will be appreciated  thanks.
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Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
User status: Offline
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Affordability, 50k income you'd be able to borrow 150k
check the useful links thread at the top of the page, use the bbc mortgage calculator. 6% interest worst case, 5.25% best case
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Colin
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Registered: 4th Apr 02
User status: Offline
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Should be able to borrow up to around £230k on the figures you gave for a 25yr mortgage.
Edit:- However any adverse credit will be taken into account & will effect the amount you can borrow, i.e. ££££'s /month on Focus ST & Insurance!
[Edited on 10-05-2008 by Colin]
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Kathryn W
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Registered: 12th Oct 03
Location: Widnes, Cheshire
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Me and Gaz bring in Around £30k a year (not much but we're both not really high up in our businesses), we have been told we can comfortably borrow £130k, meaning we could manage the repayments easily.
Our financial advisor said yes we could borrow more, but it wouldn't be sensible with the repayments.
Hopefully, fingers crossed i shall be making an offer on a house this afternoon if Gaz lets me.... 
With your g/f on an apprentice and not in proper work, they would look at her situation, asin is she really going to get a job as soon as she comes out the apprenticship...
I was a temporary when wefirst seen our financial advisor, we were old £110k maximum, and that was pushing it. Although now im permanent, they can loosen the ropes quite a bit so to say,.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by Colin
Should be able to borrow up to around £230k on the figures you gave for a 25yr mortgage.
Edit:- However any adverse credit will be taken into account & will effect the amount you can borrow, i.e. ££££'s /month on Focus ST & Insurance!
yeah i know colin, hence why i can't do it just now couple of years i'd day
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Colin
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Registered: 4th Apr 02
User status: Offline
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Yeah its hard not to want to fritter all your cash away, esspecially as your young. If you were really clever you could really land on your feet in terms of geting a nice house & paying it off. Just needs a few sacrafices.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by Colin
Yeah its hard not to want to fritter all your cash away, esspecially as your young. If you were really clever you could really land on your feet in terms of geting a nice house & paying it off. Just needs a few sacrafices.
i know mate, i'm just not ready to ''face the world alone'' yet
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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My missus and I bring in about £55k a year; we were offered upto £260k, based on 40 year term; however we only needed £110k; we had a real battle to get them to reduce the term but in the end they accepted and we have a 19 year term with the first 3 years fixed at 5.85% iirc; I'll need to check
[Edited on 11-05-2008 by LiVe LeE]
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stubbsy05
Member
Registered: 23rd Oct 02
User status: Offline
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I earn 22k a year an manged to get a mortgage for £110k with Abbey! House was £128k .I did have a 15% deposit though
Best advice I can give, is get a IFA who searches the whole market.
Lenders have really tightened up lately. First Direct had some good mortage rates but had a £1500 arrangement fee.
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corsa120
Member
Registered: 4th May 02
Location: Northamptonshire
User status: Offline
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me and my girlfriend bring in about 45k between us and we got offered 175k from lloydstsb and 160k from northern rock.
my biggest opinion is just because you have been offered a big amount do not mortgage yourself upto the hilt only go as far as what is comfortable from month to month on the mortgage amount. me and my mrs got 3-bedroom house for 120k here 2 years ago, houses are cheap here lol hehe
but we pay 620quid a month for that at about 6%apr over 27 years which i will be reducing soon, but if we had gone for the full 175k i really would not have alot of money left for new cars and holidays i just wanted what was best for my life not a house to show off to people i want to impress, not that im saying my house is pants i love but as affordability comes into it i can run 2 cars have 3 holidays and still have nice house but with 175k mortgage i could'nt
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