Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

How to find out how much mortgage i'd get

43 replies

purpleme12 · 17/02/2021 16:24

Firstly i am clueless about all of this
so please be understanding and bear with me
i work part time and don't earn a lot. get some tax credits on top
i have a child
i want to find out how much mortgage i'd get if i was to buy a house (if this did happen the deposit would come from my mum) so for example we'd need to know how much mortgage i could get so that we know what we could afford/how much they'd have to give.
how do i do this??
how do i find out if i'd get a mortgage and how much i'd have to pay each month?
who do i call about this?
i just want to find out in theory so i can work out if this is even possible.

OP posts:
Northernsoullover · 17/02/2021 16:25

Have you tried an online mortgage calculator?

Donotgogentle · 17/02/2021 16:27

www.moneysavingexpert.com/mortgages/best-buys/

Money Saving Expert is a highly reputable site. Try the mortgage calculator on there.

Pepsipepsi · 17/02/2021 16:29

Lenders typically let your borrow 4 to 5 times your income. And most want a minimum of 10-15% deposit. Lots of good advice on money saving expert www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing/
There's loads of mortgage calculators available online, have a look on Google. Some will be direct with banks, others will be a more of a price comparison website style. Best of luck!

SkittlesRainbow · 17/02/2021 16:29

Look up on Martin Lewis MSE website for advice. Then use a calculator to see what you can borrow, just google any bank name, or google how much mortgage can I borrow. It’s usually between 3-5 times your annual income depending on a number of factors.

mootymoo · 17/02/2021 16:31

Generally you can borrow 3-4 times your income but there's additional affordability calculations done. You would probably be best speaking to a broker as many lenders do not accept tax credits, maintenance or child benefit as income.

Donotgogentle · 17/02/2021 16:33

We all recommend MSE Grin

Original poster
purpleme12 · 17/02/2021 16:35

Ok thank you
so i might be better going with broker
CAn you basically just decide to give as much deposit as you want?
so if i do a have a higher deposit it should be easier for me? is that right?

OP posts:
Standrewsschool · 17/02/2021 16:40

Definantly the higher the budget, the easier it will be, because your mortgage will be less.

Most mortgage sites have mortgage calculators.

calculator

Glitterb · 17/02/2021 16:42

A broker is a good plan, I have just used one and she was worth her weight in gold! She gave brilliant advice and chased solicitors/Nationwide on my behalf.
You need to have a think about how much you want to spend/deposit etc and go from there.
Be prepared to need to provide all bank statements and financial information as well.

Persipan · 17/02/2021 16:45

One of the things that mortgage lenders will look at is the LTV (loan to value) - it's a consideration in terms of how safe a prospect the loan is for them. For example, imagine someone wanted to buy a £200k house with a 10k (5%) deposit, giving a 95% LTV - if property prices drop just a little, and that buyer can't make their payments for any reason, the lender could lose money even if they repossessed the house to sell it. Now imagine they had a 100k deposit (50%) - the bank don't really have to worry too much about fluctuations in the property market. Basically, the bigger a deposit you have, the better the loan to value ratio - you'll be able to get access to better interest rates. So yes, a higher deposit does help - but they will also need to look at how affordable the loan will be for you.

Standrewsschool · 17/02/2021 17:58

Obviously I don’t know how much you earn, or what your deposit will be.

However, I’ve assumed a £20000 income and £25000 deposit. According to the calculator I posted above, that will give a mortgage of approx £100000.

That will cost around £370-420 per month depending on the mortgage offer.

All prices are approx, but gives you a rough idea.

Original poster
purpleme12 · 17/02/2021 18:51

Unfortunately it's quite a lot less than that that i earn (excluding bonus and tax credits)
however i might be able to get a bigger deposit than that

OP posts:
Original poster
purpleme12 · 17/02/2021 18:53

I have look at that online calculator on MSE that someone posted upthread

Is my next step contacting a broker?
Does that cost money if you even start to talk to them about this?

OP posts:
Hallyup5 · 17/02/2021 18:55

I disagree about a broker. They're not always great. By all means speak to one, but I had a really crap experience with London and Country (the one everyone recommends). I filled in their online form to be told we'd be able to borrow a certain amount. I then spoke to someone who basically told me we couldn't afford the house we were looking at and then proceeded to 'awww' at me down the phone in a really patronising manner. Told me to come back when we'd found a cheaper property.

Went directly to Santander (who took all our tax credits and child benefit etc. into account). I'm now sat in the house I was told I couldn't afford.

chestnutmares · 17/02/2021 18:59

Find an independent mortgage broker. They will not charge you upfront to speak to them, they will look at the whole mortgage market and their fee is paid as part of the process once you get the mortgage. Ours were great and really demystified the process. Don't use a broker that asks for money upfront.

Original poster
purpleme12 · 17/02/2021 19:01

Ok this is really useful thank you

OP posts:
Original poster
purpleme12 · 17/02/2021 19:02

So santander also possible i guess

OP posts:
Alienchannell21 · 17/02/2021 19:20

I've found Halifax mortgage calculator good and quite accurate.

Original poster
purpleme12 · 17/02/2021 19:26

ok i've had a look on halifax

so i guess from what people are saying some people take into account tax credits and child benefit and some people don't

interesting

OP posts:
ComtesseDeSpair · 17/02/2021 19:48

Yes - this is why you should approach an all of market broker, because they’ll know which lenders accept tax credits and child maintenance as income, consider bonuses etc when so won’t waste time approaching lenders who would automatically discount you. A broker shouldn’t charge you, they receive their cut from the lender. Avoid any broker who wants to charge you a fee.

Acovic · 17/02/2021 19:50

Nationwide have a basic "how much can I borrow" calculator.

They tend to be quite conservative lenders.

BrilliantBetty · 17/02/2021 19:55

Speak to an independent mortgage broker.
It won't cost you (I think they probably get a commission from the mortgage provider).

I found that having a large deposit of more than double what I wanted to borrow, wasn't as helpful as I thought. I was still lent the standard 4 times annual salary. (And I don't think that would include your tax credits)

NachoNachoMan · 17/02/2021 20:25

One thing that is worth noting, however, is they may ask you how you will afford the repayments once you are no longer receiving child benefit and tax credits. My friend is a SAHM with a couple of little ones, they included child benefit on the mortgage application with Santander. Santander asked how will they make up the shortfall when no longer entitled to CB and they said she'd be returning to work when the kids were school age, and their mortgage was approved. I'm guessing your mortgage term will be longer than you will be eligible for tax credits, but I'm also assuming you'll probably look at longer hours before then, anyway. ☺️

Original poster
purpleme12 · 17/02/2021 20:45

yes i would be upping my hours when she's older
(as much as it would be lovely to work part time!)

OP posts:
Swipe left for the next trending thread