how much money should I be earning a year minimum if I wanted to buy a million pound house?

Answer 1

Well, guessing that the same (or similar) rules apply to people with this much cash, you'll need to be earning more than £333,000 per year (bearing in mind that a large proportion of this will go to the taxman).
Also you'll need a £150,000 up front for a 10% deposit and the 5% land tax.

The thing is, if you're that minted you can afford a good accountant who will probably save you a whole bunch of spoondoolies.

I reckon you could probably get away with about £150,000 a year if you buy the house using your limited company to avoid a large amount of the tax.

Good luck with that.

Answer 2

This will depend on the size of the deposit you can put down. Most lenders are more flexible on your purchasing power the larger the deposit you can put down - for example if you have a 25% deposit to put down, high street lenders will lend you approx 4 * your income. Therefore if you had £250,000 deposit, you would be able to mortgage £750,000 for which you would need an income of £187500. Some lenders are now using affordability calculations which mean that they would look at your ability to repay the loan rather than the actual amount of money you were earning. In these cases the mortgage payment would need to be no more than typically 30-40% of your monthy income. If you do not have as much as 25% deposit the income multiples used to calculate your borrowing would be reduced to approx 3.5* your income, however there are fewer lenders that would lend up to £1million without a substantial deposit.

Answer 3

Wow. That's like two million dollars U.S.! But, given it's England, if you can afford a place like that it's probably worth it. More so than here. I think it would be upwards of one hundred fifty thousand pounds annually.

Answer 4

Hah ! you would need to marry a woman and let her earn that kind of money for that house as i doubt you could bring in the dosh .. You will need a woman ! re: ur previous question .

Answer 5

Usually bankers look for your monthly payment to be between 28% and 32% of your monthly income. So it depends on how much money you could put down.

Answer 6

I will guess a quarter of a Million pound...in the US they do your income divided by 4.

Answer 7

In America, our houses are way bigger and we don't pay half as much as you do in Britain, don't let any of these Americans tell you differently.

Answer 8

hai , you should be earning atleast £250000/year to buy what you wish for . according to my clculation this answer is right. thank you bye have a good night.

Answer 9

How much is the down payment and how long is the loan?

Answer 10

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