Mortgage - how many times your salary?
Discussion
How many times your salary is your mortgage? I rent, would like to buy next year (I have never looked at nor applied for mortgages) and wondered what the average 'times you salary' figure is these days. Its gone up from what it was, hasnt it? Is it likely that I'll be offered up to 4x my salary without too much fuss?
depends what you do.
I've been oveered multiples higher than 5 in the past, didn't fancy the repayments though!
Unless you've got a particularly chequered financial history it's pretty likely that you'll be able to borrow as much as you want.
The trick is being realistic about what you can actually afford to pay out each month. Thats the real important figure!
I've been oveered multiples higher than 5 in the past, didn't fancy the repayments though!
Unless you've got a particularly chequered financial history it's pretty likely that you'll be able to borrow as much as you want.
The trick is being realistic about what you can actually afford to pay out each month. Thats the real important figure!
We have just been through this in the past week, I think the amount they worked out was about 3.5x our joint wages which works out to a monthly payback of 900 a month, which is not affordable for us, so in all likliness, you will have to dictate how much you can afford rather than than them saying, we can give you this.
Having said that, on what we pay in rent, we can get a large 3 bed semi for that monthly amount. Not bad for first time buyers (ish)
>> Edited by mxdi on Friday 23 September 14:14
Having said that, on what we pay in rent, we can get a large 3 bed semi for that monthly amount. Not bad for first time buyers (ish)
>> Edited by mxdi on Friday 23 September 14:14
Bob, you should be OK, as long as you have not missed any rental payments or large debt payments then your credit score should be ok for mortgage.
Also going for a monthly amount that is achevable is wiser, just in case house/flat needs money spending on it, after all, everyone likes to make a place their own.
Its a buyers market at the mo and interest rates have come down below 5% on some fixed rates.
4x salary for a single mortgage is very acheivable. I'm assuming you have a deposit to put down and legal costs sorted? Thats the main immediate cost.
Also going for a monthly amount that is achevable is wiser, just in case house/flat needs money spending on it, after all, everyone likes to make a place their own.
Its a buyers market at the mo and interest rates have come down below 5% on some fixed rates.
4x salary for a single mortgage is very acheivable. I'm assuming you have a deposit to put down and legal costs sorted? Thats the main immediate cost.
Typically, what might the monthly repayment be if you borrowed 200 or 300k?
Due to interest, it cant be as simple as dividing by the number of years, then by 12 months.
I know nothing of these matters
Im ashamed to admit I dont even know what to look out for, what to avoid in small print etc. Yet 
Due to interest, it cant be as simple as dividing by the number of years, then by 12 months.
I know nothing of these matters
Im ashamed to admit I dont even know what to look out for, what to avoid in small print etc. Yet 
By the way if you've got a decent despoit together you can go down the self cert route then it wouldn't matter if you were a schitzophrenic gambling addict with a string of bad debts and a penchant for travel.
Bottom line, these days providing you can convince them that you can make the interest payments a bank will lend you whatever you want. And if the parent bank won't they'll have a dodgy subsidiary that will
Bottom line, these days providing you can convince them that you can make the interest payments a bank will lend you whatever you want. And if the parent bank won't they'll have a dodgy subsidiary that will
try... www.charcolonline.co.uk
they have calculators on them.
Also I heard about something else which may apply to you being self employed, that is a 'self certify' mortgage, dont know much about it, but you determine how much you borrow as long as you can repay.
they have calculators on them.
Also I heard about something else which may apply to you being self employed, that is a 'self certify' mortgage, dont know much about it, but you determine how much you borrow as long as you can repay.
UKBob said:
Typically, what might the monthly repayment be if you borrowed 200 or 300k?
Due to interest, it cant be as simple as dividing by the number of years, then by 12 months.
I know nothing of these matters
Depends on the term of the mortgage. iirc I was looking around recently for about £200,000 over 15 years as I am considering moving. Monthly repayment was in the £1400-£1500 I think. If you went for a 25 year deal the monthly payment would be less but you would almost certainly pay more over the total life of the mortgage as you would end up paying more in interest. I did not look to hard for the best deal, I was just trying to get a rough idea.
UKBob said:
Typically, what might the monthly repayment be if you borrowed 200 or 300k?
Due to interest, it cant be as simple as dividing by the number of years, then by 12 months.
I know nothing of these matters
The Nationwide website has an easy to use Loan calculator that shows both what you can borrow and how much it will cost you.
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