Can anyone calculate or tell me where i can find out how much i can borrow for a mortgage, based on an income of 40k per annum
- posted
20 years ago
Can anyone calculate or tell me where i can find out how much i can borrow for a mortgage, based on an income of 40k per annum
Go to a mortgage site and you can use one of the calculators.
Safely, sanely, sensibly you should not borrow more than 3 times your salary. However, we appear to live in the era of self-certification where people are being offered ridiculous multiples of 'their salary' whether genuine or not. I am curious, in the area you are looking would you be able to buy any property, let alone one you want, with a 120K mortgage?
John.
Go to a mortgage site and you can use one of the calculators.
average price for ex-council type 3 bed semi's are around 120k, New 3 bed houses are around 140+. Daunting prospect!
Because the market's in the midst of one of it's traditional booms. See the graphs on . Don't be alarmed by people telling you 'you must get on the housing ladder otherwise you'll never be able to afford to'.
Daytona
Don't be
Indeed, if your stats / analysis are correct people were paying 101% of their salary on mortgages in 1989 so if they could afford that then pretty much anyone could buy these days! Obviously people on 'average' salaries werent able to buy the 'average' house at points like that, so either that column is meaningless or needs a different title. Plus, (though its not clear or explained AFAICS what 'CEML/DTR' stands for, the further back you go, the harder 100% mortgages were to get, so your analysis needs to make a stab at what percent of the house price the mortgage is for. When I was first buying, AFAICR, it was very difficult to get better than 80-85% mortgages(that would be late
1970's).
I mentioned it on the "CML DETR Price Analysis" sheet - "Department of the Environment, Transport & Regions, ONS. House prices are the DETR mix-adjusted series based on a 5% sample of mortgage lenders" and the 5% sample was provided by the Council of Mortgage Lenders (CML). Yes it's not as clear as it might be - I'll change it. I believe that the ODPM is using another formula now so I'll review the whole price source issue. I originally used the CML/DETR series due to the quantity of historic data available, the obvious choice was the Land Registry but this only goes back to 1995.
My intention was to give a comparison as to general affordability over time. I'll hunt around for some historic average LTV stats, but I won't be holding my breath !
Daytona
However, I suspect the bit which is wrong is more the "ladder" part, i.e. there is probably not going to be much growth in prices from here in the medium term. I think the affordability part is likely to remain true, even with quite a substantial fall in prices it will remain hard for young people without well-off parents to buy houses. The bottom line remains that there just aren't enough houses to go around.
Incidentally, I noticed that a 3-bedroom semi down the road from me is on the market for £220k, so it could be worse!
And a 3 bed terrace for 385,000!
Just bought a brand new 2 bed semi, for 63,200............. Been built as we speak.
Gaz
Where?
- Where?
Carlisle..................
That makes sense.
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