Affording a mortgage

[MyuMe]

Hi

I earn a decent salary but property costs mean a mortgage for anything I want is not likely.

Thing is I am in no debt. Have a decent deposit and I could afford mortgage payments on a bigger mortgage.

Do they ever take into account the fact that you can afford the repayments or just use the rule of thumb 4-5 times your salary and that's it?

Op you are right to avoid help to buy and shared ownership, they are the biggest con going yet most people seem to promote them and its the best way to get a house, probs the same people who think leasehold houses are a great idea no doubt, they will be a very costly mistake in the future and hard to sell imo. Unfortunately the housing crisis/market is pritty screwed at the moment and is set to get worse as the bank of England is set to cut interest rates again as the economy is doing worse than what is expected which means people will be able to borrow more money and for savers to invest into property as you lose money now if you save, it seems they want people to get into debt and spend money in the economy, all this massive debts for houses is a really bad thing

I always read on here before joining that Sutton was awful

I’ve read that too Written by people who don’t know the area. It’s the safest borough in London, low poverty levels, the south side is very leafy, lots of amenities, great schools and transport links. I fail to see what’s so awful about it. I’ve lived here for almost 5 years and have found it fab.

Ah ok thanks Jojo I will give it another look!

@dodgeball I'm not saying I disagree. I live in zone 2 and I was kind of thinking of the places close by - although looked at Rightmove and there is only one flat for £300k in my area. I don't know the prices of the entirety of south east London.

We were offered 5.5x combined salary, the mandatory stress test I think is wether you could afford repayments at 7% interest.

@Asdf12345 that’s loads. What % of your net pay are the repayments?

We didn’t take 5.5x, but our current repayments are 19% of net income.

There are a couple of banks lending 5.5 or 6 times if you have a professional job .. pretty sure lawyer would count
My dd(deputy head teacher) just got 5 x her salary from santander, she earns 63k and her 5 year fixed is under 1000 a month

Clydesdale bank

Oh and I'm glad you wont go near htb with a barge pole... biggest con in this country

Thanks @Alexalee might I ask what area of the country your daughter is in to have mortgage payments under £1000 a month.

South east london, bought a 3 bed terrace for 335k just before xmas... does need about 50k of work to bring it up to what she wants though

Mortgage is about 280k I think, was 85% ltv

Why is help to buy a con?

My sister got 4 times her salary for her first home purchase. She was able to show that even if mortgage rates went up to 15 %, it was still less than she had been paying in rent for years. Definitely worth trying.

In london you are paying 450k for a 2 bed flat where 2nd hand 2 bed flats are only 300k... when they come to sell they wont be getting the 150k extra

Yes with help to buy you have to buy a new build which are over priced and likely to lose value.

You saddle yourself with debt to the government.

Or if your house doesn't lose value and increases in value you owe more back to the government.