First Time Buyers: How much can we borrow?

[LostLauren]

With an overall annual salary adding up to £30k ? how much can we borrow?

Also, how does our deposit affect the mortgage? For example, if we had a £20k deposit, does this increase the amount we can borrow or does it lower our monthly repayments?

Anyone help? Just a rough idea?

Depends who you get a mortgage with, but most lenders will lend you 3.5 x yours wages minus any debt you owe

So if you have no debt, thats roughly 100k, and if you have 20k deposit you would only need to borrow 80% of the mortgage, so if you go for a house at 100k, you get a mortgage for 80k

HTH

The goal posts may well have changed and you it may be worth waiting another year or even 2 to get more house for your money.

If you really want to buy now the ratio could be 3 times your salary, so you may be able to borrow £90k add your £20k deposit and buy a house worth £110 (also factor in removal costs and solicitor fees).

We have sold up and are waiting for the market to fall, but we have previously used the Abbey as they had a good rate and did let us borrow up to 5 times our salary -not to be advised these days if you are wanting a house for a home rather than an investment.

Many of the banks websites will have a mortgage or affordability calculator online that you can use but in this climate it will be at the discretion of the bank or use London and Country brokers who can search the whole market for the best deal - you don't pay them a fee, the mortgage company that gets your business will.

We earn about £35000 between us but have no deposit. We were told a few months ago that we could borrow about £80000. The co-op were going to lend us £108000 but that was with a key worker scheme so they could have lent us 40% more on top of that.
We are going to wait for a year or so though .