Posted on 15 February 2010 by lee martin
My partner and i currently have salaries of 18500 and 26000 per annum so combined total of 44500 i would like to know what would be the largest amount u think our combined salary would enable us to borrow for a 1st time buyer mortgage? we have just started saving for a deposit so havent really got that much at present but have seen a deal with barratt where they offer a deal with 85% mortgage and allow an interest free loan for the remainding 15% over 10 yrs?
Lenders are now looking at total affordability rather than using a multiple of your earned salary and the amount that they lend you will depend on any existing credit commitments, your credit score and how much deposit you have saved. Based on the figures you have quoted I think you could safely achieve a mortgage of around £190,000, perhaps rising to as much as £200,000.
The best rates available at the moment are reserved for borrowers with a large deposit, but there are still some good deals around for people with deposits of 10% or more. The deal you have seen with Barratt will restrict the number of lenders you have to choose from and they will still expect you to put in your own personal deposit of at least 5% of the full purchase price.
I recommend that you take the full details of the Barratt's offer, together with a full breakdown of your monthly income and expenditure to a good independent financial adviser who can advise you of the options you have open to you.
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