Given your combined income and deposit, it’s possible to find a mortgage for the price range you’re looking at, but several factors will influence the outcome:
- Affordability – mortgage lenders typically assess affordability based on your income, expenses, and other financial commitments. With your mother’s income of £85k per year and your income of £26k per year, you have a combined income of £111k. Lenders may be willing to lend around four to five times your combined income, which would give you a mortgage amount of around £444k to £555k. With your £250k deposit, this would allow you to purchase a property in the £550k to £600k price range
- Credit history – lenders will also consider your credit history when assessing your mortgage application. A good credit history can improve your chances of securing a mortgage with favourable terms
- Age of borrowers – your mother’s age may be a factor in the mortgage application, as lenders typically have maximum age limits for mortgage borrowers. Since your mother is 52 and plans to retire in around 10 years, lenders may consider her age and retirement plans when assessing the mortgage affordability
- Deposit size – your £250k deposit represents a significant portion of the property’s value, which can strengthen your mortgage application and improve your chances of securing a mortgage with favourable terms
- Property value – it’s essential to research the mortgage market and speak to a mortgage broker to explore your options
- Interest rates – mortgage interest rates can vary depending on factors such as the size of your deposit, the loan-to-value ratio, and the lender’s criteria. It’s advisable to compare rates from different lenders to find the most competitive offer
Assuming you have no other liabilities, then this looks feasible. However, we would need to be sure that you can afford the monthly payments. You can use our how much can I borrow calculator for an estimate.
Mortgage Payments
A mortgage of £350,000 over a term of 10 years will cost £3,380 at 3%, £3,544 at 4% and £3,712 at 5%. If the monthly payment is affordable, you may also want to plan for eventualities should something happen to your mother or her income as your salary on its own wouldn’t be sufficient to maintain the repayments on your own.
Overall, while securing a mortgage for the property you’re looking at may be possible, it’s essential to consider all relevant factors and seek professional advice to ensure that you make informed decisions. Call us on 020 4519 5101 for more information.
