How much can I borrow?

Posted on 16 February 2010 by Jill


My husband and I make a good joint income he is on £70K and I'm on £52.5K per year full time employment. We don't have a down payment but his father has told us he will help us out with this. Can you recommend how much we would need down to purchase a house in the £600K region? We haven't begun looking yet so there is flexibility. We both have good credit and have a car loan as well as a couple of credit cards etc. Total debit is probably about £15K or so. Thanks

Jill

This is going to depend on how generous your father in law is prepared to be.  To get a good choice of mortgage lenders and their products you really need a deposit of 25% or more.  This would equate to a mortgage of around £450,000 depending on the eventual purchase price and I would expect lender's to be happy to consider this size of loan for you.

I suggest that both you and your father in law speak to an independent mortgage adviser about your situation so that you can gain some concrete figures with which to plan your future.

Peter


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