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    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?
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    (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.
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    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.
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    (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
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    (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.
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    (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?
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    (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?
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    (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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