What is the biggest mortgage I could get for a house in the UK on a salary of £25k?

Question

I am a recent graduate and would like to know the maximum mortgage I could get on a salary of £25k. Bear in mind I don't know much about mortgages!!

Thanks for the help so far. I'm actually hoping to buy a property of value £120k or greater as that's the cheapest I've seen for a one bedroom house in good quality where I live. Is this out of the question on this salary?

Answer 1

Most lenders work on a multiplier of 3 or 4 times so 75 to 100k

As a graduate any payments against student loans might reduce your monthly affordability so they might only lend you less.

£120k is a stretch but you might find someone willing to do it in the right area. You could do with a partners income on the application form! Just see how much of a deposit you can scrape together to show willing.

Answer 2

On average, you'd be looking at 4 times your salary (assuming you're single). A few lenders will lend up to 5 times your salary. This also depends on the deposit you put down. Generally, you'd need to put 5% deposit down, or you may find yourself paying a higher interest rate.

I have heard of a broker getting someone a mortgage for 8 times their salary. This was probably a special case involving a trainee, who is guaranteed a higher income when they finish their training.

Northern Rock are very good for first timers as they have the Together Range of mortgages, which will lend up to 125% of the value of a home. They do this through a combined secured and unsecured loan. This way, if you have a student debt which needs to be repayed, then you can consolidate this into the unsecured part of the loan.

Answer 3

This is used to be around 3.75 times your annual salary, less any debts that you might have. Although a lot of companies will consider you on affordability these days instead. However, there are companies that specialise in graduate mortgages that might be more useful, as they don't require a deposit.
Check out moneyfacts.co.uk for all different types of mortgages.

Answer 4

Normally about 3.5 times your salary - so about £87,000. You will need at least a 5% deposit, and if you have any loans, they will take that amount off what you can borrow. However I have heard of some lenders lending up to five times a salary - need to make sure you can make the monthly repayments though. Best to go to a Financial Adviser for advice.

Answer 5

I am a gradute and they were prepared to lend me 4 times my salary at a fairly decent rate. I know there are a few companies that will do 5x now however their interests rates are higher so your monthly repayments will increase. Remember certain lenders will only lend to you if you have been in your job for 6 months or more.

Answer 6

If its on a self certificated mortgage, as long as you can put up at least a 15% deposit then you can pretty much be assured that you'll get what you need - obviously within reason
So if the house you want is say £300K then you would need to put up at least £45k and so on and so forth

Answer 7

Usually 35-40% net income, so about 10K a year/12.. Or about 800 a month

BP

Answer 8

It used to be 3.5 times your annual wage.
so it would be 87.500 if it is still the same.

see a mortgage advisor they can sometimes be helpful

Answer 9

debt consolidation

if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is:

http://umgarticles.atspace.com/debt-consolidation.htm

Answer 10

normally 3x salary b4 tax and 15% deposit on the property.