Mortgages - Hypothetically how much can I get?
Discussion
Hi All,
This is my curiosity getting to me more than anything else.
I finish uni in June 06 and will move back home to my folks and hopefully to my job as well.
Fingers crossed I should be earning £20-25k (Probably nearer the £20k mark).
How much money can I borrow for a house? Apart from my student loan (Which will be £10k!!)I shouldn't have any other debts, and my mum is talking about taking part of my inheritence out of their house for me to have as a deposit. Probably about £10k.
The question is what amount will I be able to borrow? Will having a deposit help?
Like I say this is just out of curiosity as i'm not really looking forward to moving back in with my parents but renting seems like dead money. If I know that if I live at home for 6-12 months and then move out into my own place when I can afford it I will, if not i'll start renting as soon as I get home!
Thanks,
Phill
This is my curiosity getting to me more than anything else.
I finish uni in June 06 and will move back home to my folks and hopefully to my job as well.
Fingers crossed I should be earning £20-25k (Probably nearer the £20k mark).
How much money can I borrow for a house? Apart from my student loan (Which will be £10k!!)I shouldn't have any other debts, and my mum is talking about taking part of my inheritence out of their house for me to have as a deposit. Probably about £10k.
The question is what amount will I be able to borrow? Will having a deposit help?
Like I say this is just out of curiosity as i'm not really looking forward to moving back in with my parents but renting seems like dead money. If I know that if I live at home for 6-12 months and then move out into my own place when I can afford it I will, if not i'll start renting as soon as I get home!
Thanks,
Phill
jacobyte said:
4 x earnings is "average", although sometimes less or a bit more. Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
So if I got my £10k deposit I would be looking at about £90k in total. (Obviously not including any fees). B
r! Most of the places round my way start at about £120k. Worth knowing though thanks!
jacobyte said:
4 x earnings is "average", although sometimes less or a bit more. Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
You cannot have as much as you want-if you declare the wrong income I think it is technically fraud.
You will have to pay for a few things out of that,
Conveyancing Fee's.
Stamp Duty, if over £120k.
Disbursments
Survey Fee
If its Leasehold, remember you will have to pay Ground Rent and Service charge, If not You will have to pay buildings insurance, then you have life insurance, council tax... and so on.
You will have Heating Bills, Electric, Gas, water rates, TV license.
I'd keep saving... I'm earning about £30k and can't afford to move out yet. I'm just going to buy a cool car with my savings that won't depreciate, and buy in a couple of years.
Conveyancing Fee's.
Stamp Duty, if over £120k.
Disbursments
Survey Fee
If its Leasehold, remember you will have to pay Ground Rent and Service charge, If not You will have to pay buildings insurance, then you have life insurance, council tax... and so on.
You will have Heating Bills, Electric, Gas, water rates, TV license.
I'd keep saving... I'm earning about £30k and can't afford to move out yet. I'm just going to buy a cool car with my savings that won't depreciate, and buy in a couple of years.
JagLover said:
Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
You cannot have as much as you want-if you declare the wrong income I think it is technically fraud.
You can self-certify up to £40,000. They then slap about 7-9% minimum which on £100,000 works out at just under £900.
Not ideal...
'course in my case - buggered!!!
pmanson said:
Hi All,
This is my curiosity getting to me more than anything else.
I finish uni in June 06 and will move back home to my folks and hopefully to my job as well.
Fingers crossed I should be earning £20-25k (Probably nearer the £20k mark).
How much money can I borrow for a house? Apart from my student loan (Which will be £10k!!)I shouldn't have any other debts, and my mum is talking about taking part of my inheritence out of their house for me to have as a deposit. Probably about £10k.
The question is what amount will I be able to borrow? Will having a deposit help?
Like I say this is just out of curiosity as i'm not really looking forward to moving back in with my parents but renting seems like dead money. If I know that if I live at home for 6-12 months and then move out into my own place when I can afford it I will, if not i'll start renting as soon as I get home!
Thanks,
Phill
If you have 10% or greater deposit you can have literally any size mortgage you want, regardless of declared income, although i'd have to be personally satisfied about your ability to repay it. the rates will be slightly higher than usual but not outrageous.
if you are a "prime" customer then typical is between 3 to 4.25 X income for single applicants although I can get up to 5X from the mainstream lenders, and there are many non high street lenders who will lend up to 7X income. some will even not take into account any loans, credit cards or other outgoings (maintenance) you may have, and some won't even credit score you.
JagLover said:
4 x earnings is "average", although sometimes less or a bit more. Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
You cannot have as much as you want-if you declare the wrong income I think it is technically fraud.
I went for a self cert just as the law tightened up on this issue, some of the penalties would make your arse pout www.fsa.gov
Never a good move, Mortgage Fraud!
MINIMAX 
Scruffy said:
jacobyte said:
Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
You cannot have as much as you want-if you declare the wrong income I think it is technically fraud.
You can self-certify up to £40,000. They then slap about 7-9% minimum which on £100,000 works out at just under £900.
Not ideal...
'course in my case - buggered!!!
you've been to the wrong chap my friend
you can self cert up to any amount you like, all you need is the requisite deposit funds
KingRichard said:
jacobyte said:
4 x earnings is "average", although sometimes less or a bit more. Self-certified you can have as much as you want, but you've got to be able to prove you can pay it, and the APR is usually higher.
So, about 80K for you, about £500 a month on a good APR deal.
You cannot have as much as you want-if you declare the wrong income I think it is technically fraud.
www.fsa.gov
Never a good move, Mortgage Fraud!
those mortgages were more like non status deals where the consultant advised the lender about affordability and the lender took their word for it....big big trouble if you do that now and you're found to be telling porkies
...
!!! Plenty of places will allow your parent(s) to act as guarantor on the mortgage. So, you could get 4 x your salary plus 1 x the salary of the guarantor, which (I imagine) should put you up around the 120k mark.
Some lenders also take into account the income from renting out a room, but I think this will be limited to about 4.5k (tax thresholds?). Anyway, in your case though, based on your lower number, this still equates to an extra 20% of income.
The bigger your deposit the better, but again lots of places will give you 99%/100% of property value, so that shouldn't be a worry.
I'm not sure there is a cap on self-certing. Basically you state your earnings, but don't have to prove them, unlike a 'normal' mortgage. There is always the small print though that allows the lender to make you prove you bring in whatever you stated at whatever time. The key point is that you have to pay back whatever you've borrowed - what use would a 1m mortgage be, if the first month you can't stretch to the 6.5k payment?
Some lenders also take into account the income from renting out a room, but I think this will be limited to about 4.5k (tax thresholds?). Anyway, in your case though, based on your lower number, this still equates to an extra 20% of income.
The bigger your deposit the better, but again lots of places will give you 99%/100% of property value, so that shouldn't be a worry.
I'm not sure there is a cap on self-certing. Basically you state your earnings, but don't have to prove them, unlike a 'normal' mortgage. There is always the small print though that allows the lender to make you prove you bring in whatever you stated at whatever time. The key point is that you have to pay back whatever you've borrowed - what use would a 1m mortgage be, if the first month you can't stretch to the 6.5k payment?
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