Single First Time Buyer 34k salary 60k deposit...
Discussion
...How big a mortgage can I expect to get a reasonable deal on?
I have been on comparison websites and looked at the general advice and rules of thumb but in places they conflict i.e. I hear the reasonably good deals start at ~20% deposit (so 60k= 300k) but the affordability calculators etc suggest that my chances of getting a good deal fall off massively at over 100k borrowing amount (160k).
In my favour, I've worked for the same company for 6 years and my salary has consistently increased from 15,250.
I think I'm being ambitious with what I want but with possible salary increases in mind and the fact I'd probably end up getting a lodger in I'm hoping I can manage.
I have been on comparison websites and looked at the general advice and rules of thumb but in places they conflict i.e. I hear the reasonably good deals start at ~20% deposit (so 60k= 300k) but the affordability calculators etc suggest that my chances of getting a good deal fall off massively at over 100k borrowing amount (160k).
In my favour, I've worked for the same company for 6 years and my salary has consistently increased from 15,250.
I think I'm being ambitious with what I want but with possible salary increases in mind and the fact I'd probably end up getting a lodger in I'm hoping I can manage.
Would love to say that I'd scrimped and saved for years but in truth I blew all of my disposable income on Caterham racing until I sold the car last christmas, but since then I've spent 15 months working in Thailand with uplifts, overtime and low living expenses.
I don't have debt and my lifestyle is pretty cheap when I'm not racing, rarely eat out, occasionally drink thirty quid here or there, spent less than 300 quid on phone usage in two years, no gym habit, no expensive car habit, hate clothes shopping etc.
My credit report is probably pretty slim as I only had a credit card for a couple of years (always paid it) and took out a bank loan a couple of years ago which was paid off very early. Apart from that nothing really.
Looks like unless I go job hunting it's a flat then or maisonette at a push. I'm a bit disappointed by that but a house was going to be 300k plus and a cheaper property could at least leave me with some money afterwards to have some fun with.
I don't have debt and my lifestyle is pretty cheap when I'm not racing, rarely eat out, occasionally drink thirty quid here or there, spent less than 300 quid on phone usage in two years, no gym habit, no expensive car habit, hate clothes shopping etc.
My credit report is probably pretty slim as I only had a credit card for a couple of years (always paid it) and took out a bank loan a couple of years ago which was paid off very early. Apart from that nothing really.
Looks like unless I go job hunting it's a flat then or maisonette at a push. I'm a bit disappointed by that but a house was going to be 300k plus and a cheaper property could at least leave me with some money afterwards to have some fun with.
Condi said:
As has been said, 5x salary is probably what they will lend you, and so you'll be on much lower LTV than a lot of FTB. Might be worth looking at something needing some work if you have the cash you can invest straight away?
That's a good idea, keep back some of my savings for fixing the place up? I nearly started a general 'what should I do with this money' kind of thread instead of a specific mortgage one so I'm definitely open to ideas like this for making the best of what I have.
I was looking at getting a lodger in to help with the mortgage and getting a two or three bed semi but in Surrey these are north of 300k which you have shown me won't be doable. I wanted a house for parking maybe even a garage, and fewer noise issues- I'm a massive hypocrite, I like to make noise but less tolerant towards other people's!
I may see what the jobs market is doing because my salary is pretty modest and with six years experience and some on site overseas I imagine I could find a better salary. In the UK though, all the work is in the city or in Aberdeen, so I'm looking at zone 6 kind of area.
At least if I get a flat/maisonette and another opportunity overseas comes up I could pretty easily let it out for a year or two (I realise a standard mortgage wouldn't allow this)
Good stuff thanks for all the input, I do need and appreciate it.
I may see what the jobs market is doing because my salary is pretty modest and with six years experience and some on site overseas I imagine I could find a better salary. In the UK though, all the work is in the city or in Aberdeen, so I'm looking at zone 6 kind of area.
At least if I get a flat/maisonette and another opportunity overseas comes up I could pretty easily let it out for a year or two (I realise a standard mortgage wouldn't allow this)
Good stuff thanks for all the input, I do need and appreciate it.
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