Discussion
Looking at buying first place with my wife.. We have been renting uptil now.. Joint income is around £45k gross per year. With a deposit of £50k what would be a servicable mortgage and its "rough" monthly payment... trying to decide if there are any places out there that we can buy that are better than our currently rented house (3 bed , garage , quiet-ish estate). We both like the idea of a water side apartment - Ocean Village, Southampton or similar but Garaging / 2 Bedrooms makes the cost £250k+ and I can't work out if that's too much or not.... also like Winchester or Romsey. Any ideas ?
The £50k deposit (assuming you have other funds to cover all the other expenses including Stamp Duty) reduces the borrowing to £200k, leaving you approx 4.5 times joint income to find. You ought to find somebody to offer you that, your bargaining point being that the loan to value ratio is only 80%.
If your question is actually "Is £250k too expensive for these areas?" then a local estate agent or www.houseprices.co.uk/ should be able to help.
If your question is actually "Is £250k too expensive for these areas?" then a local estate agent or www.houseprices.co.uk/ should be able to help.
I have a 210k mortgage (
) and that's £1,126 a month (over 35 years) with Northern Rock.
If you visit Nationwide then they can tell you how much it will cost per month - their rates are pretty low, so add an extra few quid a month and that's roughly what you can expect to pay.
I've also been told the rates have ben going up for a lot of the lenders over the past couple of months, so get in there quick (I'm paying a tenner a month more because it took a week for them to process my application
)
) and that's £1,126 a month (over 35 years) with Northern Rock. If you visit Nationwide then they can tell you how much it will cost per month - their rates are pretty low, so add an extra few quid a month and that's roughly what you can expect to pay.
I've also been told the rates have ben going up for a lot of the lenders over the past couple of months, so get in there quick (I'm paying a tenner a month more because it took a week for them to process my application
)I think you'd find a better answer if you could state what you can afford each month..
My G/fs and mine joint income is about 65k but we are currently only comfortable with a 130k mortgage paying about £750pcm.
This is because we also have to take into account 2 cars, commuting costs, pensions, bills etc.
My G/fs and mine joint income is about 65k but we are currently only comfortable with a 130k mortgage paying about £750pcm.
This is because we also have to take into account 2 cars, commuting costs, pensions, bills etc.
£45k joint income and looking to borrow about £200k? Isn't that way above what they'll lend? I thought the usual rate was 3.5x your income? Northern Rock have a Mortgage Calculator which may help you:
www.northernrock.co.uk/mortgages/calculator/index.asp
I heard (today in fact) that monthly repayments are about £600 per £100k (interest only) which would seem about right given previous quotes I've had.
www.northernrock.co.uk/mortgages/calculator/index.asp
I heard (today in fact) that monthly repayments are about £600 per £100k (interest only) which would seem about right given previous quotes I've had.
zippee said:
I think you'd find a better answer if you could state what you can afford each month..
My G/fs and mine joint income is about 65k but we are currently only comfortable with a 130k mortgage paying about £750pcm.
This is because we also have to take into account 2 cars, commuting costs, pensions, bills etc.
My G/fs and mine joint income is about 65k but we are currently only comfortable with a 130k mortgage paying about £750pcm.
This is because we also have to take into account 2 cars, commuting costs, pensions, bills etc.
This seems very low to me..... assuming you roughly earn half each... £3800 net a month and only £750 on mortgage..
I was hoping that we would be getting about £3000~ net a month and spending about £1500 on mortgage/council tax/bills - maybe even interest only and get somewhere say £20k more...
What else do you spend money on and how much do you have left over ? any expensive cars/vices?
wanty1974 said:
Mtv Dave said:
I have a 210k mortgage (over 35 years)
Blimey. I can't imagine signing up to something for 35 years. When we bought our second house we took out a 20 year mortgage - only 16 years left now.Yes but most people move miles before then and change mortgages anyway. It's just a way of keeping payments low!!
dtmpower said:
What else do you spend money on and how much do you have left over ? any expensive cars/vices?
From my salary I have to pay £300 a month to get to work (train season ticket), £150 into share saves at work, £150 self contribution into my pension, £300 a month on my car finance plus I run a TVR which isn't cheap. Then theres food, household bills etc. etc. £200pcm mortgage o/payment.
In theory we could go up to a 220k plus mortgage but would feel very uncomfortable in doing so.
We have a 5 year 4.95% fixed rate from Nationwide so aren't too bothered at present of rising rates, are also happy with the size house for just 2 of us and don't want to feel stretched in order to put a roof over our heads
Slightly off topic I know but the girlfriend and I are looking at moving in together early next year. Probably renting to start with then looking to buy this time next year.
A flat or small house in Aylesbury will cost us between £140-£150k to buy.
We have a combined income of approx £40k but no deposit as of yet (Just started work having to pay off a few debts first!)
If we wanted to borrow £140k over 35 years (hopefully pay it off sooner than that but we just need to get on the ladder!) firstly
a) would they lend us the money?
b) what would the approx payments be
c) does the rate they give you depend on the size of the deposit?
Rent on a flat in Aylesbury ranges from just under £500 to approx £750 depending on size/location. The one we've been offered is a large ground floor flat for approx £600-£650 per month.
A flat or small house in Aylesbury will cost us between £140-£150k to buy.
We have a combined income of approx £40k but no deposit as of yet (Just started work having to pay off a few debts first!)
If we wanted to borrow £140k over 35 years (hopefully pay it off sooner than that but we just need to get on the ladder!) firstly
a) would they lend us the money?
b) what would the approx payments be
c) does the rate they give you depend on the size of the deposit?
Rent on a flat in Aylesbury ranges from just under £500 to approx £750 depending on size/location. The one we've been offered is a large ground floor flat for approx £600-£650 per month.
dtmpower said:
Looking at buying first place with my wife.. We have been renting uptil now.. Joint income is around £45k gross per year. With a deposit of £50k what would be a servicable mortgage and its "rough" monthly payment... trying to decide if there are any places out there that we can buy that are better than our currently rented house (3 bed , garage , quiet-ish estate). We both like the idea of a water side apartment - Ocean Village, Southampton or similar but Garaging / 2 Bedrooms makes the cost £250k+ and I can't work out if that's too much or not.... also like Winchester or Romsey. Any ideas ?
Ocean Village is a nice place (or at least it was when I used to stay there) but I'm surprised you can get that much for that price, I know apartments have taken a hit in value in Southampton recently, but still surprising! Dont be afraid to offer a fair bit lower than asking - some of them have been on the market an age and aren't selling at all well.
Winchester is VERY expensive - sold my 2 bed ex-council there at the end of last year. No garage or parking etc plus in an area I wouldn't want to go back to/advise anyone to for anything, for £215,000, and we could have had another £5k if we'd been prepared to gazzump our buyer (which we were not) The bills were also pretty awful all round.
Romsey is expensive but about 10% cheaper than Winchester but the nicer area's are just not coming up for sale at the mo - we looked in that area for 6 months without success - living just outside Romsey at the mo while we try and complete on a place in Southampton!
zippee said:
dtmpower said:
What else do you spend money on and how much do you have left over ? any expensive cars/vices?
From my salary I have to pay £300 a month to get to work (train season ticket), £150 into share saves at work, £150 self contribution into my pension, £300 a month on my car finance plus I run a TVR which isn't cheap. Then theres food, household bills etc. etc. £200pcm mortgage o/payment.
In theory we could go up to a 220k plus mortgage but would feel very uncomfortable in doing so.
We have a 5 year 4.95% fixed rate from Nationwide so aren't too bothered at present of rising rates, are also happy with the size house for just 2 of us and don't want to feel stretched in order to put a roof over our heads
I can see why now
Thanks for the insight... well I don't have a car on finance nor do I pay train or pension (surely a pension is pointless if you have mortgage outstanding - topic for another thread there) so I have £900 more left over compared - make it £750 once I have sorted out a new car. Wife has company car which costs us £100 (tax+petrol)zippee said:
dtmpower said:
What else do you spend money on and how much do you have left over ? any expensive cars/vices?
From my salary I have to pay £300 a month to get to work (train season ticket), £150 into share saves at work, £150 self contribution into my pension, £300 a month on my car finance plus I run a TVR which isn't cheap. Then theres food, household bills etc. etc. £200pcm mortgage o/payment.
In theory we could go up to a 220k plus mortgage but would feel very uncomfortable in doing so.
We have a 5 year 4.95% fixed rate from Nationwide so aren't too bothered at present of rising rates, are also happy with the size house for just 2 of us and don't want to feel stretched in order to put a roof over our heads
Sensible chap!
What you want is a couple of kids to skew the figures somewhat!
OT - How are you by the way?
My old chap told me years ago that to remain 'comfortbale' with your mortgage then the monthly repayment should never be more than one third of your net salary ...
Mind you, this was 20+ years ago when I first took one out ... an old adage but it proved fine for me - and he worked in finance so knew what he was talking about.
Mind you, with the prices as they are, this is probably impossible in a lot of cases nowadays.
There does come a case when you just can't afford the house of your dreams ... no matter whether they mortgage co offer you the money. Just cos they offer it, taking up that offer is not always the wisest thing to do ...
Mind you, this was 20+ years ago when I first took one out ... an old adage but it proved fine for me - and he worked in finance so knew what he was talking about.
Mind you, with the prices as they are, this is probably impossible in a lot of cases nowadays.
There does come a case when you just can't afford the house of your dreams ... no matter whether they mortgage co offer you the money. Just cos they offer it, taking up that offer is not always the wisest thing to do ...
MikeyT said:
There does come a case when you just can't afford the house of your dreams ... no matter whether they mortgage co offer you the money. Just cos they offer it, taking up that offer is not always the wisest thing to do ...
True - thinking back to 1990, consider what you'd do if (a) interest rates double (b) you lose your job (c) both.
I suppose there's something to be said for spending more in a rising market from the investment POV, but you won't get the gain unless you sell and live in a tent...
pmanson said:
a) would they lend us the money?
b) what would the approx payments be
c) does the rate they give you depend on the size of the deposit?
b) what would the approx payments be
c) does the rate they give you depend on the size of the deposit?
a) Someone will.
b) £700 give or take.
c) Some deals are only available to people with a certain % deposit but overall I don't think it makes that much difference.
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