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<a https://www.thestudentroom.co.uk/showthread.php?t=7467335'> Year 12s: what will be the first way you research your future options? >>
<a https://www.thestudentroom.co.uk/showthread.php?t=7467335'> Year 12s: what will be the first way you research your future options? >>
<a https://www.thestudentroom.co.uk/showthread.php?t=7467335'> Year 12s: what will be the first way you research your future options? >>

Entering the property market

I have £30k to use on my deposit and any associated fees etc

How much of that £30k should I keep for the deposit itself?

I have a £28k income

So the max property I could buy would be 5 times my income plus my deposit which would be £170k

Am I right?
Reply 1
Avatar for Reue
Reue
20
Original post by TrackerJacker
I have £30k to use on my deposit and any associated fees etc

How much of that £30k should I keep for the deposit itself?

I have a £28k income

So the max property I could buy would be 5 times my income plus my deposit which would be £170k

Am I right?


Fees and expenses are likely to be around the 5k mark. Might be less now with changes to stamp duty.
Reply 2
Avatar for Quady
Quady
20
Unlikely to get 5x earning multiple - you'd be better off thinking 4x max, say £110-115k

A lawyer will be around £700 then there is stamp duty and other fees, a grand should do it. You'll need furniture in the first few months (ie bed/sofa and white goods if they aren't included), keep another couple of grand aside for that. So I'd say you could use £27k for deposit.

So about £150k max for the property.
Original post by Quady
Unlikely to get 5x earning multiple - you'd be better off thinking 4x max, say £110-115k

.

Why? I read that it is normal to be offered in the 3-5 times salary range
Reply 4
Avatar for Quady
Quady
20
Original post by TrackerJacker
Why? I read that it is normal to be offered in the 3-5 times salary range


Because this isn't 2007 and your income isn't all that high. So your wage:living costs ratio is relatively high.
Original post by Quady
Because this isn't 2007 and your income isn't all that high. So your wage:living costs ratio is relatively high.

higher the income the greater the multiple likely to be offered?
Reply 6
Avatar for Quady
Quady
20
Original post by TrackerJacker
higher the income the greater the multiple likely to be offered?


pretty much, although I doubt its easy for many people to get more than 4.5x at the minute.

Go and get a mortgage in principle - that'll say what they're willing to offer you.

Since you found people are typically offered 3-5x income, why'd you expect to be at the top of the range? Do you have an exceptionally good credit rating?
Original post by Quady
pretty much, although I doubt its easy for many people to get more than 4.5x at the minute.

Go and get a mortgage in principle - that'll say what they're willing to offer you.

Since you found people are typically offered 3-5x income, why'd you expect to be at the top of the range? Do you have an exceptionally good credit rating?

I don't expect to be at the top of the range.

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