moving home - how much can we borrow?

[caymanbill]

The initial message was deleted from this topic on 29 July 2023 at 23:13

[caymanbill]

ThunderSpook said:

Absolute maximum is usually 5 times combined salaries. The deposit amount doesn’t usually come in to how much they will loan you, only how much interest you’ll pay.

You might find someone who’ll lend you that much because that is a decent deposit, but it will be upper end at your salary.

Thanks ThunderSpook. Much appreciated.

[caymanbill]

Thanks for the info Pillskii. You're absolutely correct in that by the time moving costs are factored in we are a long way from being to afford anything that we would consider a reasonable "upgrade" from the house we are in at the moment.

It seems that moving "up the ladder" will actually be more of a challenge then buying our first house. I suspect many others are in a similar situation to us in this area, hence why houses in the price bracket we're looking at don't seem to be flying off the market.

[caymanbill]

Eddieslofart said:

Op was asking for ballpark advice, no ? Reasonable use of this forum, yes ?

Thought so.

Exactly!

[caymanbill]

DonkeyApple said:

On a separate matter, I’m not sure there is any rush at all in the current market to upsize. The rush is firmly on for those wanting to downsize and that is only going to build. In a rising cost for debt market then your deposit on your current property will shrink much slower than on the larger properties and the percentage premium on values is going to shrink dramatically. Personally, if I was still moving up then I would be sitting right and accumulating cash.

Interesting point. Backed up by the price reduction's we've seen on properties and EAs chasing us up. It certainly seems like a buyers market in this price bracket.