How much can I borrow?

[jay_p]

Hi all,

I would appreciate help on understanding how much i can borrow?

I want to buy a property by myself.

My salary is £67500 and my outgoings montly as im at home is rougly £500/month.

Ideally I want a house which is rougly £550,000 and live it in and give extra rooms on rent (lodgers).

I have saved a quite a bit for a deposit, but if i know the maximum i can borrow i will know if im ready.

Thanks in advance

[Georgie Thew]

Hi Jay, 

A rough rule of thumb is 4.5x your income which would be £303,750, however depending on what loan to value you're looking at, some lenders can offer you more and also need to take into account any monthly credit commitments. 

lenders are usually happy for you to have a lodger however it cant be a "tenancy". 

Drop me a message if you'd like to have a chat and I can look closer at affordability for you. 

[astonthemortgageguy]

Hi Jay,

Most lenders will lend 4.5 - 4.75 times your salary, a select thew can lend up to 5 or 5.5 times your salary subject to you meeting certain conditions. Lenders will look at any commitments you have (loans, credit cards, car finance, maintenance, pension etc), which may reduce what you can borrow slightly.

The best thing to do is have a chat with a Mortgage Broker who will be able to confirm what you can borrow.

Most lenders are happy with lodgers, but they tend to not use the income earned from them until the agreement has started, so this could help with affordability on a remortgage, but not on a purchase.

Hope this all helps!

[jay_p]

Thanks for all your responses! I shall get in touch with  a broker next year. My projection is below: council tax		2400
water		400
gas/electricty		2500
broadband	35 x12	420
phone	36 x12	432
gym	25x12	300
	TOTAL	6452
		7000
350,000 mortgage
mortage --1840/month x 12		22080
4 weekly income	3200
yearly income	41600
disposabble = Yearly income - expenses =		12520
weekly spending = disposable/52		240.769

[Georgie Thew]

Hi jay, 

would definitely be worth chatting with a broker to see what your affordability is. 

My details are below and I offer a free initial meeting so nothing to pay until you complete on the mortgage and have the keys!