What can I borrow on £56k?

[user1461609321]

Hi all

Would like a rough estimate on what I can borrow in terms of mortgage on £56k?

If I sell current flat, likely to get profit of between £40-50k which I would use as a deposit, hopefully at 10%

Need a bigger property as kids getting older and would like a house rather than a flat we currently have

Will need to purchase alone.credit score good though not brilliant

Most 3 bed houses near me are generally £400k. Is my current salary affordable?

I suggest you use one of the many mortgage calculators online. Nationwide Bank's is particularly user friendly.

Do an agreement in principle online with any of the banks. Takes about 5 minutes to do and will give you a better answer. They also shouldn’t affect your credit rating

Thanks for the replies above, are any mortgage advisors able to give a rough estimate, I promise not to hold you to the stated figures

Generally the maximum that you can borrow is three times salary, with some providers going up to four times. But they will also take into account costs, eg childcare costs.

So rule of thumb you could probably borrow between £150k and £200k on your salary. Plus your £40-50k.

Gives you a budget of £190k to £250k

Just putting the basics you have given into a mortgage calculator gives a figure of £250000 available. Obviously, this is just on the limited information you have given and, as others have said, get a mortgage in principle figure for a more accurate assessment.

It’s not really about salary multiples anymore, it’s affordability. You could be on £100k for example with school fees, car loans and credit cards to the max so very little left for mortgage, or vice versa.

They want to know that will all your outgoing s you can comfortably afford the mortgage, especially if rates go up, or your financial circumstances change.

It’s doubtful they will lend your £350k though unfortunately as that’s over 6 x your salary. Average tends to be 3 or 4 at a push. There might be people who offer more but the reason 3 or 4 times is common is due to affordability.

About £252k; at the "standard" current affordability of 4.5x your salary. Getting that would depend on your credit rating, which is why the advice to use any of the major banks mortgage calculator is a good idea...

But roughly, £252k + 50k = £302k, so you'd be £98k short - although potentially more, if your credit rating affects the amount you can borrow, or if you've got any other credit obligations (credit cards with balances, car finance, etc).

What job do you do if you don’t mind me asking?

Sorry you’ll struggle to get a £350k mortgage on £56k salary.

Have you got more info, are you buying with a partner, are you a single parent, what childcare fees do you have?

4.75 x salary as a max, dependants bring the figure down as can a shorter term, or having other borrowing.

I reckon about 224k, that’s four times your salary but no including this like childcare and any debts you still have to pay off.

Halifax do 4.75 times your salary. But even so, we had a £100k deposit and have an income of almost £90k and still only got less than £400k.

They take into acct your outgoings too, so if you have a car pymt or anything like that as well it will reduce your mortgagability

You came to MN to ask, rather than using one of the gazillion mortgage calculators online?

@BoredZelda

You came to MN to ask, rather than using one of the gazillion mortgage calculators online?

Yes, it’s baffling. You could have literally typed “how much mortgage can I get” into google in 1/10th of the time it took to write that post and it would have brought up loads of calculators

Just use the nationwide calculator like everyone else.

@m0therofdragons

Just use the nationwide calculator like everyone else.

It literally takes less time to put your figures into the calculator than it did to write your two posts.

But no, you're not going to get anywhere close to £350k

Would love to know why you haven’t used an online mortgage calculator.

@Dishwashersaurous 3 times salary would be very low these days

@Cocomarine

Would love to know why you haven’t used an online mortgage calculator.

Same!

@Cocomarine

Would love to know why you haven’t used an online mortgage calculator.

🥺🥺🥺

@Cocomarine

Would love to know why you haven’t used an online mortgage calculator.

If the OP @user1461609321 used an online calculator, she wouldn't be able to push a cheeky stealth brag about her income would she?

A salary of almost £60K may let someone have a mortgage of £250,000, but you'd have to have taken level of your senses to have a mortgage that high. I know several couples on £75 to £80K between them, with £200K salaries, and they are just about OK/comfortable.

Having a quarter million mortgage with a total income of £60,000 (which some lenders would offer,) is bonkers. You'd have no leeway, and no life.

Was gonna say the couples on £80K between them and with a £200K mortgage are OK/comfortable, but not loaded... So a £250K mortgage on £60K is batshit.

@MyPatronusIsACat really? Our mortgage is about 2.5 times our income and we are kore than comfortable. Most people we know who are late twenties/esrly 30s have a mortgage 3.5/4 times joint income

I do wonder why people take the time to post if it’s just to put a snarky reply.

If you have nothing nice to say and all that!

Do you need to stay in the same area Op or might a move to somewhere else more affordable be an option? What part of the country are you in now? And how old are your kids?

Why not just use the free calculators online?

4.5 x gross salary is a typical multiplier but only a % of bonuses, non contractual overtime and commission are counted.

So you're looking at about £250k if your salary is £56k.

But if you only have £10k as a deposit then you're highly unlikely to be able to borrow more than £195k, as 100% are atypical just now.