Mortgage Calculator

DAIR · 18 Nov 2015 at 18:39

Is there a way to calculate how much one could borrow, based on a monthly payment?

ReltonBFD · 18 Nov 2015 at 18:42

Literally just Google mortgage calculator and set it to a rate which fits you, it's gonna be different when you go and get a mortgage as the deals change constantly.

Also a mortgage advisor will show you the rates and incentives to the mortgage just got a grand cashbook from one it's pretty much paid the legal fees.

The Geezer · 18 Nov 2015 at 18:44

I would have thought you just use any mortgage calculator and keep moving the slider until it fits your budget.

The general rule is 1.5x your salary but you would rarely get a 100% mortgage

Basher · 18 Nov 2015 at 18:46

The Geezer said:
I would have thought you just use any mortgage calculator and keep moving the slider until it fits your budget.

The general rule is 1.5x your salary but you would rarely get a 100% mortgage

Most banks will lend you more than 1.5X your salary. When we were applying recently it ranged from 2X-4X my individual salary.

The Geezer · 18 Nov 2015 at 18:51

Basher said:
Most banks will lend you more than 1.5X your salary. When we were applying recently it ranged from 2X-4X my individual salary.

I honestly thought they changed that after the last crash due to irresponsible borrowing (obviously not irresponsible lending :rolleyes:

we can't blame the banks)

The interest rates won't stay this low forever

mattoxx · 18 Nov 2015 at 18:54

Mortgage calculator is useless, if you want to know exactly how much you can borrow then you have to go to bank and discuss it with mortgage advisor.

bledd · 18 Nov 2015 at 18:57

Find a mortgage broker, not a bank. It's free to get quotes they will explain anything to you.

Also read up on money saving expert, they have a newbie guide

delta0 · 18 Nov 2015 at 19:07

The Geezer said:
I would have thought you just use any mortgage calculator and keep moving the slider until it fits your budget.

The general rule is 1.5x your salary but you would rarely get a 100% mortgage

Upto 4.5x you salary is what most banks offer.

Most people borrow around 3-4x.

Roar87 · 18 Nov 2015 at 19:08

If 2 of you are lending it's 3.5x your combined salary, if it's 1 person it's 4x their combined salary, obviously subject to creditchecks and affordability

Zefan · 18 Nov 2015 at 19:30

Ignore everyone on here stating that banks all go off explicit values such as 3x, 4x, etc. I recently borrowed 3.7x combined salary, and they were offering as much as 4.5x. That's combined, not single salary. That's with Halifax. Have a look at online calculators and compare what each lender is willing to do.

Abraham · 18 Nov 2015 at 19:45

For the last 18 months (and longer for some) banks/morgtage providers haven't used salary multipliers, actually taking the affordability of repayments as the primary decider in whether to approve your loan. So what other outgoings you have will drastically affect the amount you can borrow.

The easiest way to get a ballpark figure is to run numbers on money supermarket or similar.

ReltonBFD · 18 Nov 2015 at 19:45

I got 4x my own annual income, AFAIK it's based on the deposit, outgoings and if you have any dependences

Zefan · 18 Nov 2015 at 19:47

Abraham said:
For the last 18 months (and longer for some) banks/morgtage providers haven't used salary multipliers, actually taking the affordability of repayments as the primary decider in whether to approve your loan. So what other outgoings you have will drastically affect the amount you can borrow.

The easiest way to get a ballpark figure is to run numbers on money supermarket or similar.

Almost all do now go no higher than 4.5x, or at least this was the case from April to August.

jsmoke · 18 Nov 2015 at 19:49

Basher said:
Most banks will lend you more than 1.5X your salary. When we were applying recently it ranged from 2X-4X my individual salary.

Back in the 90's you would get a 100% mortgage(even if a student) plus another 10% on top for extras. The days!

Maccy · 18 Nov 2015 at 19:58

Shop around as well as using a broker. We made the mistake of using a broker through a family recommendation, in the end we didn't get as good a deal as if we'd gone to First Direct or even Natwest.

Abraham · 18 Nov 2015 at 19:59

Zefan said:
Almost all do now go no higher than 4.5x, or at least this was the case from April to August.

There are obviously implicit multipliers within that, but it is just down to whether given your normal expenditure you can afford it, it was a requirement that came in last year.
The more you earn the higher the multiplier can be because obviously more of it is disposable because your base costs don't increase at the same rate as salary, but that has always been the case anyway.

dowie · 18 Nov 2015 at 20:12

Maccy said:
Shop around as well as using a broker. We made the mistake of using a broker through a family recommendation, in the end we didn't get as good a deal as if we'd gone to First Direct or even Natwest.

this - in fact always check first direct & HSBC... they often have much better deals than you'll find with a broker

brokers are more useful if you've got some situation that isn't standard - like you're a contractor or you're in a probation period of a new job etc.. as then their market knowledge comes in handy - if you're just trying to find the cheapest tracker on the other hand then they're not necessarily going to get you the best deal rather they'll just get the 'best' out of the subset of providers they work with

BigT · 18 Nov 2015 at 20:43

jsmoke said:
Back in the 90's you would get a 100% mortgage(even if a student) plus another 10% on top for extras. The days!

Set me up in home ownership for life that. Came out of Uni with nothing but a load of student debt and a job offer and got 110% mortgage on a 5x multiplier of my starting salary. Paid all the stamp duty and a bit of furniture. Rode the boon to get a load of equity and moved on to bigger and better over the years.

On my significantly better salary now I couldn't get a mortgage to buy that first flat now if I was a first time buyer with 5-10% deposit. I feel really sorry for young people trying to get on the property ladder.

Glaucus · 18 Nov 2015 at 20:48

The Geezer said:
I honestly thought they changed that after the last crash due to irresponsible borrowing (obviously not irresponsible lending we can't blame the banks)

The interest rates won't stay this low forever

If it was 1.5x virtually no one would be able to afford a mortgagee.
Even at 4.5x then your only looking at 135000 for 30k wage which is just above average.

DAIR · 18 Nov 2015 at 21:13

bledd. said:
Find a mortgage broker, not a bank. It's free to get quotes they will explain anything to you.

Also read up on money saving expert, they have a newbie guide

Will check those out.

Thanks