I am looking at getting a mortgage, me and a mate are going in together, so how do i work out how much im allowed and where is the best place to get one?
2006-11-27 06:05:51 · 8 answers · asked by Nick A 1 in Business & Finance ➔ Renting & Real Estate
Usually the amount you can borrow is around 2.5 times your salary, or in your case you and your friend's salary combined
e.g. if you earn 40,000 between you, you can borrow 100,000
You need to go to the bank and ask for advice, and they will give you details of which mortgage will suit you best. Then you can shop around and try and get a lower interest rate!
2006-11-27 06:14:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
On a joint mortgage, some lenders offer 3 times the highest earners salary plus 1 of the other party's salary, or, they combine the 2 salaries then multiply by 3 - they will usually offer you whichever way happens to work out most advantageous to you.
I heard that somewhere was offering 5 times your salary in a bid to help first time buyers get on the property ladder - Im almost sure it was Abbey National, might be worth checking it out.
Good luck
2006-11-27 06:22:24 · answer #2 · answered by nicnacpaddywhack 1 · 0⤊ 0⤋
Call a mortgage broker. There's more to this question than meets the eye. You have to figure out what your credit is, then your DTI, and using that, find a rate you qualify for, and use that to find an amount of money you can afford to borrow.
2006-11-27 06:52:51 · answer #3 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
You need to figure out your DTI, or debt-to-income ratio.
This will calculate your earnings versus your proposed mortgage payment. I have created a calculator as well which automatically figures everything out for you.
Basically you want your DTI to be under 45%. Best to be around 40%.
Check it out at:
http://www.thetruthaboutmortgage.com/dti-debt-to-income-ratio
http://www.thetruthaboutmortgage.com/mortgage-calculators
Message me if you have specific questions.
2006-11-27 06:25:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I believe it is usually your annual gross income divided by 33%-45%. It depends on your bank and their underwriting requirements but this is the general guidelines. You should speak with your banker/broker to find out how much you can qualify for.
2006-11-27 07:08:45 · answer #5 · answered by tianaramal 4 · 0⤊ 0⤋
Go to www.bankrate.com they have mortgage calculators and loads of other helpful financial information.
2006-11-27 06:14:01 · answer #6 · answered by Dog Lover 7 · 0⤊ 0⤋
Roughly 3x gross income and repayment (together with all other monthly living expenses) should not exceed 40% of gross income.
2006-11-27 06:10:54 · answer #7 · answered by boston857 5 · 0⤊ 0⤋
try uswitch.com moneysupermarket.com, moneysavingexpert.com or the banks net sites
2006-11-27 06:14:25 · answer #8 · answered by puzzled? 3 · 0⤊ 0⤋