Can I get a 200k mortgage?

[Wicca]

Hello everyone,

I work for Hertfordshire County Council and have for a little while now. I will be a first time buyer, I have a 18k deposit and wish to get a flat near to work for £210,000. I earn £17,000 a year. Will I be able to get this amount with a 30year mortgage?

Thank you.

 

[john1989]

Hello everyone,

I work for Hertfordshire County Council and have for a little while now. I will be a first time buyer, I have a 18k deposit and wish to get a flat near to work for £210,000. I earn £17,000 a year. Will I be able to get this amount with a 30year mortgage?

Thank you.

No.

Probably nearer half that or less.

@tony84 is the mortgage man around here, however.

 

[Wicca]

No.

Probably nearer half that or less.

@tony84 is the mortgage man around here, however.

Hello,

Thanks John. A friend of mine however earns 22k a year, put down 25k on a flat worth £212,000 and he managed to get it?

 

[john1989]

I'm not aware of any lender that will lend 8.5 times their annual salary.

Could you afford the repayments if your only income is your salary of £17,000? I would expect not.

 

[Wicca]

I am not sure how my friend got this then? What sort of price range would I be looking at? The unfortunate thing is I live in Hertfordshire, and its bloody expensive everywhere!

 

[john1989]

I would expect 3-4 annual salary, so around £50-70k.

A mortgage for the amount you want would have repayments around the £900pm mark. You come out wth roughly £1200? How would you afford to live?

 

[Wicca]

Over 30 years mortgage? with 18k down surely it wouldn't be that much? Around 700 a month. I get £1260 a month.

 

[beasty]

No

BTW

Most people who have saved up a years salary as a deposit know the multiples available to them

Call me suspicious but..

 

[Wicca]

Unless he had a much larger deposit?

 

[Wicca]

I was given 25k this is how I have the deposit money.

 

[tony84]

There is a cap in place of 5x income, there are exceptions but generally speaking they are for HNW people.

I would be looking at around the £100k mark, 4.5x income plus your deposit would be more or less the limit.

I suspect your friend has probably bought the property as a Buy to let, technically speaking so long as the property is self funding (ie the expected rent is deemed as enough you can get boyond what your normal income would support) however it is Mortgage fraud, if you get found out you risk ending up on the national hunter system and struggling to get a Mortgage for a long time to come. They may have managed to do it as a guarantor mortgage but I doubt it.

 

[ethical PR]

Have you looked at shared ownership ?

 

[tony84]

I dont do shared ownership personally, but I am not sure those figures stack up either. You still have to pay rent on the share you do own and that will then get taken in to account when looking at how much can be borrowed.

 

[japancool]

I would ask though what this has to do with "business" as such, since one assumes you're buying a flat as a private residence.