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Original poster

Mortgage on 25k

29 replies

Imagineit · 12/02/2023 08:12

I earn 25k a year and need to leave my current partner.

So everything I read says lenders will offer around a mortgage around 3 or 4 times my salary but when I use the mortgage calculator it's coming out saying the amount I will be able to borrow is around 50k over 25 years. I can't get a property on that!

OP posts:
Dragonsandcats · 12/02/2023 08:16

On moneyfacts mortgage calculator it says between £75 and £112k. Maybe find a broker and discuss it with them. Do you have anything saved for a deposit?

Original poster
Imagineit · 12/02/2023 08:17

I'm in a property currently and expect to get about 30k out each when we sell

OP posts:
Original poster
Imagineit · 12/02/2023 08:18

Thanks I'll check that site!

OP posts:
NashvilleQueen · 12/02/2023 08:22

How old are you? If your salary likely to increase any time soon? Could you get a longer term mortgage? What about a shared ownership property? I would speak to a broker in your position.

plumduck · 12/02/2023 08:23

It's all about the affordability too. If you earn that much but have also maxed out a credit card the amount will go down. Childcare costs. Any regular subscriptions. Weekly food bill.

NashvilleQueen · 12/02/2023 08:24

A lot also depends on where you are in the country of course. If London and SE then you may struggle.

Overthebow · 12/02/2023 08:25

It depends on your affordability. Any loans, overdraft, credit cards, car payments, childcare bills, other fixed outgoings will affect how much you can borrow.

Original poster
Imagineit · 12/02/2023 08:25

I'm 43. I'm looking to increase my salary in the next 6 months but I need to leave asap.

How do I find a broker and how much do they cost? Thanks so much for the help

OP posts:
Original poster
Imagineit · 12/02/2023 08:26

@NashvilleQueen I want to know more about shared ownership but not sure where to start

OP posts:
EmpressaurusOfCats · 12/02/2023 08:28

Are you in a union? If so, it’s worth checking their site to see if the benefits include free consultations with a financial advisor. I’m looking to switch mortgages & found a broker that way.

BernadetteRostankowskiWolowitz · 12/02/2023 08:28

It might be to do with your age - can you look at a 15 year term?

JanglyBeads · 12/02/2023 08:29

Re shared ownership - ring yr local housing association and they'll advise.

Read Martin Lewis MSE to explain everything about mortgages.

Original poster
Imagineit · 12/02/2023 08:30

Thanks so much everyone! This information is absolutely invaluable

OP posts:
SurreyWifi · 12/02/2023 08:31

The vast majority of independent mortgage advisors don’t charge. They earn commission from the mortgage company.

good luck OP x

YukoandHiro · 12/02/2023 08:31

Definitely use a broker - they can get you a much better deal.
But yes affordability comes into it. Eg if you're paying childcare that obviously affects the size of repayments you can afford

EmpressaurusOfCats · 12/02/2023 08:32

There’s some general info on shared ownership here: www.gov.uk/shared-ownership-scheme

Original poster
Imagineit · 12/02/2023 08:33

How do they work out childcare payments? I have one child and pay for wraparound. Surely that's assumed to be shared with exdp? Or do they assume I'm fully responsible.

OP posts:
JanglyBeads · 12/02/2023 08:35

Depends if you know what contact schedule you'll likely have.
When DC are with you, you're responsible for their childcare. When with him, he's responsible.

plumduck · 12/02/2023 08:36

You'll need 3 months payslips

Tanyaaah · 12/02/2023 08:38

If you will get Universal Credit when you leave they will take that in to account when deciding how much to lend you. (My mortgage broker did)

MumOf2workOptions · 12/02/2023 08:40

@Imagineit
We used a broker and he was great, which part of the uk are you in?

strawberriesarenot · 12/02/2023 08:42

Borrowed 90k on 21k here.

Im99912 · 12/02/2023 08:45

My son had a 50 k deposit and could borrow 140k on 30k
he did SO
london & County are fee free brokers

Original poster
Imagineit · 12/02/2023 08:46

I'm in Birmingham

OP posts:
Exeterrose · 12/02/2023 08:47

Shared ownership is brilliant! We did this and made profit when we sold.

There was a queue of interested people when we put it up for sale. Gorgeous, well built house.

Highly recommended x

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