would somebody on £100000 a year be able to afford a million pound house?

Answer 1

if i was on £100000 a year, then i'd be looking at a house worth alot more than a million!!!!!!!

Answer 2

Generaly you can lend 3.75 times your salary and take out a mortgage to 90% of the property. So in answer to your question, if it was a single person mortgage, then no. Because the most that you could borrow under normal circumstances would be around £400000. At the end of the day, it's whether you can convince the lender if you can afford the payments.

Without the problem of whether you would get the money from a lender you'd possibly be able to afford it. At something around £3400 per month over 25 years, with an income of £6000 per month after tax as long as you had no other commitments kids, partner, car etc....

Answer 3

For this, you have to consider how much years it would take to make £1,000,000. You must also consider how much money would be spent on everyday items and services like groceries tax, healthcare etc. If you spent £25,000 a year, then you would make a gross amount of £75,000 per year. It would take 13.333333... years to make £100000. This means it would take 14 full years' of pay to have enough and pay for that years' goods and services. You should also realise that you will need to maintain the £100000 house and still keep up with old payments etc.

Answer 4

Not for very long. Debt service (principal and interest payments) on the mortgage would probably be not far below the 100,000 number. Even if you got an interest only deal for a period of time, you still would end up paying a high percentage of income to service the mortgage, and you would have all the costs of taxes, insurance and repairs on top of that.

Sounds like a bad economic investment, given the income level.

Answer 5

Depends - the maximum amount you can get a mortage for is 3.5 times the value of your maximum wage. Because they are on such a high wage the bank may extend the upper limit to 4.

So the maximum mortage they could get is £400,000. If they had £600,000 of savings then they could definately afford it.

If you are assuming a £1,000,000 mortage - it would not be possible, unless you came to an agreement with the bank manager, e.g. a 100 year mortage, that is available to very poor people and people who live in high-value areas, e.g. london.

Answer 6

And I'm kidding here....but my house weighs around a million pounds, but my bank account is lighter than air.

Answer 7

Would need a big deposit, most banks will lend around 4 times someones salary.

Answer 8

With a proper down payment.

Answer 9

possibly with a good mortgage, you'd end up paying loads in interest

Answer 10

Depends what savings they had to put down as a deposit.