Valiant
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It varies by financial institution but is usually calculated as follows:-
Your base salary + allowances (car/large town etc) + overtime/bonus/commission = Salary (your overtime, bonus or commission may be capped if it is not guaranteed)
You then annualise all your credit repayments (i.e. multiply them by 12) and deduct them from the salary.
This then gives you your salary for mortgage purposes.
Most places will then multiply this by up to 4 (or 3 if joint) giving you the amount they will lend you.
There are companies out there that will lend up to 5 or even 6 times your income but beware of affordability, I would reckon on a MAXIMUM of 40% of your take home pay be spent on your mortgage, ideally this would be 35% as you still have to pay the bills.
Also, not just mortgage payment but consider all the other incidentals, life assurance, payment protection and home insurance. These can add up.
Employ the services of a qualified independent mortgage/financial advisor to sort out all the quotes etc for you or take a day out and visit all the banks and building socities in your area to see what they offer. Be prepared for an initial interview of up to 90 minutes.
Like I have mentioned, each company will offer you a varying amount to borrow but make sure you can afford it before you jump headlong into any committment. You don't want to become a statistic.
Contact me if you have any further questions etc. |
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ShelfSideSpur
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3.5x to 4x for a single person is a general rule of thumb. 3x combined salaries for two people. |
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Diablo
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3 - 5 times your salarydepending on the lender |
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Sarah H
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Go to a broker and they COULD get you as much as you can afford, rather than a bank telling you & you getting squat. |
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Cally2001
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This varies bank to bank and also depends on how much deposit you have. IT can be anything from 3.5 times to 5 times your salary.
I would speak to an Financial Adviser to see what they can get you |
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Sangmo
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With interest rates going up and the housing market about to crash, think twice before mortgaging up to the max. |
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**tomtom
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It varies from bank to bank.
Normally 3 to 4 times of your basic pay (before NI/Tax)
They also look at your own contributions/savings. |
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Mark S
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If you can keep the payments down in the neighborhood of 25% of your income, you will miles ahead of everyone else. The absolute max should be no higher than 33%. |
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KRB
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I think its up to 5 times your salary |
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Party_Babe
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I think it is 3 times ur salary but you should also be able to get grants, they also look at whether u have children, and all other out goings so it could b more. |
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sammiejane71
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when i got my mortgage it was three times my wages or three and a half my and my husbands joint income |
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Dorian Grey
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One of those that depends questions. The general rule is that the monthly payment should be no more than 33% of your net income, with total encumbrances no more than 50%.
So, the total mortgage depends on the interest rate you are getting, Loan term, and what other debts you have. |
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vix
 |
It really depends on your circumstances, whether it is a sole or joint mortgage, the amount of deposit you have, your credit rating, the property you are buying etc etc.
Your best bet is to speak to an Independant mortgage advisor. Their advice is free, you would only be charged a small fee if you went ahead with a mortgage through them. They are unaffiliated with any lender and are normally unbiased. Also, they're very good at getting you a better deal than you could get on your own - they know the grey areas in the agreement where they can tweak things.
Good luck! |
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amtusS
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approximately 3 times of j gross income , joint income if house is to be bought jointly |
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Hoodoo
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It all depends on your mortgage lender. Some lenders allow up to 3 times your salary and some lenders lend you up to 5 times your salary. It depends different lenders different amounts to lend. |
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John H
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Its based on your monthly payment as a percentage of your monthly gross(debt ratio)-usually less than 45% total-all current obligations including the prospective mortgage. |
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QueenBee
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We've just got one for about 3.5 times our salaries. Check out the different options out there though, because some banks do better deals than others. Also, if you can afford a deposit that improves your choices of mortgage. We originally tried for 100% mortgage, and found we couldn't afford the house we wanted, so we put a 5% deposit down and the contracts were exchanged today!! |
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MICHAEL A
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3 times your annual salary.
Sometimes they make exceptions. |
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dusty
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I work in a building society and we work off 4.75 x your annual salary. |
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Happy
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varies - usual is 3 1/2 some will go to 5 - abbey i think |
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DR.Chemical
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You can get upto 5 times your annual salary but you have to remember that you have to keep up monthly payments and so those weekly hair_dos have to be curtailed!
You could marry a rich guy then you don't have to worry about these things! |
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drinkingpippin
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You can easily get 5 x your salary. But its whether or not you can afford the payments each month. Good luck, I know how stressful moving is as iv done it for 4 years running. x |
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FM is going away.
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It is 3x's your annual salary. |
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