Realistic chance of getting dream house ?
Discussion
Im clearly no expert on mortgages, in fact not much of a clue.... Anyway while off over Xmas and scouting the net i have found a perfect house for me 
Now the house is 600k , my current house is worth approx 340k ( no mortgage on it ). Is there any chance i could borrow approx 260k to make this happen ? I earn approx 32k per year. No debt as such but do a share save from salary approx 250 per month. Apart from that couple of things on interest free ( 200 per month ). I will try get an appointment to speak to my bank later this week.
Does this look even possible with the numbers or am i hoping too much and should forget it and look for something in a more realistic price range ?
Thanks for any advise.
Now the house is 600k , my current house is worth approx 340k ( no mortgage on it ). Is there any chance i could borrow approx 260k to make this happen ? I earn approx 32k per year. No debt as such but do a share save from salary approx 250 per month. Apart from that couple of things on interest free ( 200 per month ). I will try get an appointment to speak to my bank later this week.
Does this look even possible with the numbers or am i hoping too much and should forget it and look for something in a more realistic price range ?
Thanks for any advise.
With a £600k house you'll be looking at £20k stamp duty plus solicitors fees and moving costs of say another £10k (probably a bit light) for your selling estate agent, solicitors, surveys and removal costs etc. Unless you have that in cash you'll need another £30k on top of what you are after to get from £340k to £630k needed (£290k gap to fund)
From a quick Google on mainstream lenders you would be lucky to get an offer of more than a £145k mortgage. Specialists may get you a bit more, but to double I would say unlikely.
Assuming you did get to borrow £290k that would be monthly payments of £1,200 a month, leaving you with circa £800 to pay for everything else, including your loans and SAYE scheme if you keep that going.
Your own lifestyle will tell you if this is do-able, assuming you can find a lender.
From a quick Google on mainstream lenders you would be lucky to get an offer of more than a £145k mortgage. Specialists may get you a bit more, but to double I would say unlikely.
Assuming you did get to borrow £290k that would be monthly payments of £1,200 a month, leaving you with circa £800 to pay for everything else, including your loans and SAYE scheme if you keep that going.
Your own lifestyle will tell you if this is do-able, assuming you can find a lender.
Edited by Baron Von Alders on Tuesday 27th December 00:22
Absolutely no chance at all.
£32k, minus £3k in SAYE (assuming it comes from gross), minus your £200 interest free and minus £1200 PCM mortgage leaves only £100 a week for food, bills, fuel for the car, clothing etc, etc.
No sane bank would lend on those terms - and no sane person would even consider that it would be possible!
£32k, minus £3k in SAYE (assuming it comes from gross), minus your £200 interest free and minus £1200 PCM mortgage leaves only £100 a week for food, bills, fuel for the car, clothing etc, etc.
No sane bank would lend on those terms - and no sane person would even consider that it would be possible!
Thanks for replies, my SAYE has approx 9 months to run, but could stop it if needed and get out what i have saved so far ( £6750 ) I have another £10k in savings.
My outgoings are minimal ( no cars on finance ) not many outgoings at all. My Wife buys food shopping and pays gas / electric . Doing a quick search her annual salary wont make much difference to how much on paper i can borrow. Which i think is going to be my issue here. While having a £1200 a month mortgage does not worry me too much, i can see it a big concern for the lender despite a fairly good Ltv.
My outgoings are minimal ( no cars on finance ) not many outgoings at all. My Wife buys food shopping and pays gas / electric . Doing a quick search her annual salary wont make much difference to how much on paper i can borrow. Which i think is going to be my issue here. While having a £1200 a month mortgage does not worry me too much, i can see it a big concern for the lender despite a fairly good Ltv.
32k vs 260k? That's a huge commitment, not something I'd be happy with.
Do you never intend to buy a car/decorate/holiday/eat?
I borrowed 3x salary and that's more than enough for me, I'd never be able to manage repayments on 8x (and live as well) Unless you've a sneaky source of side income I just don't see how you'd make ends meet? No lender is going to touch you surely?
Do you never intend to buy a car/decorate/holiday/eat?
I borrowed 3x salary and that's more than enough for me, I'd never be able to manage repayments on 8x (and live as well) Unless you've a sneaky source of side income I just don't see how you'd make ends meet? No lender is going to touch you surely?
Jockman said:
I spoke to HSBC a few weeks ago and the max they will lend is 4.7x income and even then you would need to be a saint to get that level.
No harm in dropping Sarnie a pm??
Thanks! No harm in dropping Sarnie a pm??
OP, unfortunately, your income figures would need to be close to £55k+ to even be close to being in the ball park...........
johnxjsc1985 said:
why would you want to burden yourself.
Im of the same thinking. I'm mid-40s and can't wait for the day that I am mortgage free. I have friends that are admittedly a few years younger (but not that many) and a few of them are quite happy to add on another £250k to their existing mortgage whereas the thought of it just makes me shudder 
pincher said:
johnxjsc1985 said:
why would you want to burden yourself.
Im of the same thinking. I'm mid-40s and can't wait for the day that I am mortgage free. I have friends that are admittedly a few years younger (but not that many) and a few of them are quite happy to add on another £250k to their existing mortgage whereas the thought of it just makes me shudder As for the OP, can you actually afford the upkeep on a house like that? I ask from a position of '1 person removed' from the following. I know someone whom won a nigh on 7 figure sum on the lottery, so he and his wife bought a lovely and very expensive home. Trouble is, the upkeep on it with everything from decoration of a standard befitting through to general maintenance is absolutely rinsing them and the main breadwinner is on a salary of over twice yours, although his wife stays at home and doesn't work to look after the children.
Big homes are fantastic to look at but they chew through money at an exponential rate.
Hainey said:
I'm in the same boat as you Pincher. I could afford something bigger and nicer but I really don't want the debt, I want rid of this mortgage and the last thing I want is to add to it.
And for me that's the bottom line - yes, I can afford it but I'd much rather get rid of the existing debt and use that money to enjoy myself. Horses for courses though!
Hainey said:
I'm in the same boat as you Pincher. I could afford something bigger and nicer but I really don't want the debt, I want rid of this mortgage and the last thing I want is to add to it.
As for the OP, can you actually afford the upkeep on a house like that? I ask from a position of '1 person removed' from the following. I know someone whom won a nigh on 7 figure sum on the lottery, so he and his wife bought a lovely and very expensive home. Trouble is, the upkeep on it with everything from decoration of a standard befitting through to general maintenance is absolutely rinsing them and the main breadwinner is on a salary of over twice yours, although his wife stays at home and doesn't work to look after the children.
Big homes are fantastic to look at but they chew through money at an exponential rate.
Hi , the upkeep on the house is not much of a concern, its only a 2 bed place ( prob sound even more mental now ) So not much bigger than what i have now, just a very nice area and closer to family. Its in great decorative order at present. My wife does work but limits her hours but still contributes to gas/electric/sky and food shopping. Its not a realistic move for me at present i have realised. As for the OP, can you actually afford the upkeep on a house like that? I ask from a position of '1 person removed' from the following. I know someone whom won a nigh on 7 figure sum on the lottery, so he and his wife bought a lovely and very expensive home. Trouble is, the upkeep on it with everything from decoration of a standard befitting through to general maintenance is absolutely rinsing them and the main breadwinner is on a salary of over twice yours, although his wife stays at home and doesn't work to look after the children.
Big homes are fantastic to look at but they chew through money at an exponential rate.
TWOKWACKS said:
Hi , the upkeep on the house is not much of a concern, its only a 2 bed place ( prob sound even more mental now ) So not much bigger than what i have now, just a very nice area and closer to family. Its in great decorative order at present. My wife does work but limits her hours but still contributes to gas/electric/sky and food shopping. Its not a realistic move for me at present i have realised.
I think we all like to look at stuff that we really know we cant afford and then we apply "Man Maths" only for the other half to come in and stick a ruddy big pin into our dreams.I'm not a banker (as you will probably guess from what I'm about to say), but where's the risk? He want's to borrow under 50% of the purchase price. He's managed to get a decent value house so far and have no mortgage on it so clearly knows how many beans make 5.
If it turns out he can't afford to pay, he'll sell up, repay the loan, and move on. If he doesn't, they will repossess, sell up, clear the loan, and pay the OP what's left.
The only risk is house prices completely collapsing, and if that happens, millions of people will be in the cart.
I believe years ago, there used to be such a thing as a non status mortgage. Seems the sensible answer for something like this.
If it turns out he can't afford to pay, he'll sell up, repay the loan, and move on. If he doesn't, they will repossess, sell up, clear the loan, and pay the OP what's left.
The only risk is house prices completely collapsing, and if that happens, millions of people will be in the cart.
I believe years ago, there used to be such a thing as a non status mortgage. Seems the sensible answer for something like this.
TwigtheWonderkid said:
The only risk is house prices completely collapsing, and if that happens, millions of people will be in the cart.
That's not a risk. What's a risk is that if interest rates go up even slightly he'll be unable to pay and will have to sell up. In some respects he'll be lucky because he will be one of the very first people to be in that situation, so he might get out before house prices collapse. That's hardly a badge of honour though.johnxjsc1985 said:
Not having a mortgage is bliss and helps with sleeping well at night why would you want to burden yourself.
Totally agree, we are about in the process of completing a house sale in a similar budget to the OP. We have less deposit but substantially higher joint income for the mortgage application. Even though we are lucky enough to be afford the mortgage with plenty of disposable income left for the next 5 years we'll be in austerity mode to clear as much mortgage debt as possible.The thought of maintaining a 600k+ house on our joint income is already giving me some unrest at night, doing it on £32k would give me insomnia followed by nightmares.
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