how much mortgage could we borrow on £14500 a year?

[longwaytogo]

Thats it really. We have about £2000 saved, we are going to have to move out of the house we are in that comes with the job that i resign from in Feb.So how much mortgage would they give us?

Was thinking the same thing, GDG, especially in light of some threads where the family has found themselves unable to make the mortgage payments.

our mortgage with the HSBC is based on affordability as opposed to x salary.

expat - agree with you. But actually she wrote 91 million and meant 91 thousand - that's what I was getting at.

Agree though that borrowing more than you can afford has a high potential for disaster (says she embarking on the mother of all mortgages!! Can afford it though luckily)

suppose we need to look at what we could afford to repay but its not just repaying it now is it, its if the interest rate goes up.

Absolutely - it's about how much risk you want to take and how much leeway you have in your outgoings. Do you have lot of outgoings you could cut back on if you really had to (if interest rates went up)? Do you see your income realistically increasing in the future or are you more likely to maintain a similar income? These are the things you have to consider. Don't mortgage up to the hilt if you have no leeway and no realistic improvement in circumstances in the future.

I guess income will improve in the future when the babies are a bit older getting work wont be such a problem and there are no other outgoings that we could cut back on really

You could look at fixed rate until the kids are at school perhaps?

Great minds think alike. That's what i said to my dh this morning.

at the great minds bit.

LWTG - It's definetly worth applying for Council Housing/HA even if the waiting list is 6 months. We're in London so there might be a different allocations procedure here, but we were told we would be in B&B for 2 years at least before being housed.

We were being made homeless because our private landlord was selling and got a council flat 10 days before the bailifs were going to evict us. In our area people who are about to be made homeless take priority over those already in B&B so it's a matter of being lucky enought to be in that situation when a property comes up. Councils will always make the situation seem worse because they want to keep waiting lists down.

I know it's not ideal but worth doing just incase you don't get a mortgage.

thanks lilypond i am going to fill in the forms for council and housing assosiation and find out what kind of mortgage we can get.

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Thanks orinoco will do. found out a friends brother is a financial advisor so will give him a try i think