Do you want to buy a home but aren’t sure if you have enough cash? If you’re still unsure what house you could afford in the United Kingdom, this is the correct place.
We’ll consider how far your house-buying budget may stretch based on your yearly salary and savings in this section.
Home prices in the United Kingdom have reached a 17-year high, according to Nationwide Building Society! With increasing inflation, rising energy expenses, and climbing interest rates, it’s no surprise that many potential buyers are asking if they can afford to buy a home right now.
Is it possible for me to buy a house?
Many UK residents will not have enough cash in their bank account to buy the typical (as of January 2022) £274,000 property asking price, which is where mortgage lenders come in.
A mortgage lender is more likely to give up to four to five times a borrower’s income in order to assist them purchase a house rather than saving hundreds of thousands of pounds and living on beans on toast for five years.
A deposit is not required for longer-term house purchases as long as you can satisfy the mortgage lender’s affordability standards, which include your intended expenditures and costs, as well as your income. House deposits are usually set at ten percent of the property purchase price, depending on how much you can borrow.
If you were aiming to acquire a property for £150,000 and your heart was set on it, you’d have to put down at least £15,000. As a result, your mortgage lender would need to loan you the remaining £135,000 that you will repay in monthly payments over the next 25 years.
On £30,000 a year, what house can I afford?
Lenders typically allow borrowers to borrow up to four times their yearly income. So, if you make £30,000 a year, you could be given up to £120,000 in loans. However, this will depend on whether or not you fulfil other criteria that the lender uses to study your ability to make required monthly payments. When the deposit is combined with a 10% down payment of £12,000 and people earn £30,000 every year
On £20,000 a year, what house can I afford?
House prices are continuing to rise in the United Kingdom, pushing up the cost of purchasing a home. Those with an annual salary of £20,000 can expect to pay around £80,000 for a house. However, given current UK house prices, how much house can you afford with £80,000?
On less than £20,000 a year, what house can I afford?
Individuals who make less than £20,000 a year may experience comparable problems to those who make more. Individuals with an annual income of less than £18,000 will be able to borrow up to £72,000, for example. In the North East, purchasing a decent property as an individual on less than 20k per year is not simple.
You can enhance your chances of obtaining a mortgage by submitting with a partner or family member. If you and the mortgage lender make similar yearly salaries, you may potentially double the amount of money that they are prepared to give you.
How do you buy a home if you have a low income?
If you can’t obtain a joint mortgage, but you need a decent home, the government offers several low-cost housing ownership options to you. Loans for new homes are accessible to first-time buyers looking for new-build property.
If you’re qualified for an equity loan on a new-build home, you’ll be required to deposit at least 5% of the property’s purchase price and arrange a repayment mortgage of at least 25 percent. This equity loan can cover anything from 5% to 20% of the property purchase price. In London, this ratio is raised to 40%.
Shared ownership is ideal for individuals who don’t want to make a substantial investment or pay monthly mortgage payments on a suitable home. Rather of purchasing the whole property, you may buy a part of it (often 25%, 50% or 75%) and rent the rest, rather than paying rent to the landlord.
Looking for your new house with Mistoria Worsley
You’ve just learned what home you can afford based on your earnings and the present help-to-buy incentives provided by the government, and it’s time to begin looking for a house – exciting!
Fortunately, finding a new home has never been easier thanks to our simple search criteria. You may also limit the minimum and maximum prices so that you see only houses for sale by the location that fit your budget while filtering out our available houses for sale by region.
Mistoria Estate Agents Worsley is your one-stop-shop for apartments, villas, and houses in a variety of locations across the UK. From trendy flats to large family homes, we have something for everyone. Take a look at our current property listings now.
