5% only works if the property value and your salary is 4.5x the value of the house! This is what most people don't understand. As example if you earn 24k that is 108k if you want to buy house for 150k then you need 42k in deposit! that is if you are single of course.
Based on single occupancy yes, but most lenders aren’t too far away from 4.5x salary. Usually 4.75/5. So not much more and outgoings come into account differently also depending on lenders
Let's say a single person earns £40k a year. A mortgage of 5x their salary is £200k. Then they put down a 5% deposit of £10k. They can buy a house (or flat) for £210k but the monthly repayments on that £200k mortgage at 4% would be £1k a month. That's 37% of their take home pay, which seems high. I guess that's why it's not recommended to borrow as much as you can.
You are 100% correct, I always say there are two types of affordability. The amount the bank is willing to give you and the amount you are willing to pay!
@@pattersonellen brokers will get a fee from the lender but only if and when the mortgage completes. So some brokers will charge a fee for their services up front just in case the mortgage doesn’t go ahead you see
@@simon_walton does the lender usually give a commission? The reason i ask is a broker is asking a friend for a fee when they will also get a commission from the lender. She doesnt know if she will get better value elsewhere where the broker gets just commission from the lender.
@@pattersonellen@pattersonellen Lenders will always pay brokers commission but only once it's complete, but some brokers will charge a fee, like we do (£376, by the way). There is a lot of work to do up front, and the commission from the lender isn't always guaranteed as some clients will pull out of deals (for whatever reason), yet our work was done. I hope this makes sense buddy :)
Hi, thank you for uploading this video. I have a question as I am very interested in purchasing a house with a mortgage. Given the current global situation and the looming fear of war, I’ve researched and found that no home insurance companies cover destruction caused by war. I don’t mean to sound negative or morbid, but I would like an honest opinion about proceeding with a house purchase despite these concerns. While I understand that no one can predict the near future, my eagerness to own a home is being hindered by the current news and the fear of war. What is your opinion on this matter? Do you think it would be wise to buy a house this year? -Cath G.
Hi Cath! No problem at all, I hope it helped! You can buy a home with the option to get home insurance, which also includes war coverage! There will never be a "convenient time" to buy a home! So my suggestion would be, if you find something you love, go for it!
Not at all! Tbh, I’ve seen some crazy bad credit scores and we have still been able to source a mortgage for them. Just be proactive on fixing your report 🤙
These help so much! thank you!
Glad it helped! Anytime man! 💪
Really insightful video this, great content!
More than welcome chief!
Love it
5% only works if the property value and your salary is 4.5x the value of the house! This is what most people don't understand. As example if you earn 24k that is 108k if you want to buy house for 150k then you need 42k in deposit! that is if you are single of course.
Based on single occupancy yes, but most lenders aren’t too far away from 4.5x salary. Usually 4.75/5. So not much more and outgoings come into account differently also depending on lenders
Let's say a single person earns £40k a year. A mortgage of 5x their salary is £200k. Then they put down a 5% deposit of £10k.
They can buy a house (or flat) for £210k but the monthly repayments on that £200k mortgage at 4% would be £1k a month.
That's 37% of their take home pay, which seems high. I guess that's why it's not recommended to borrow as much as you can.
You are 100% correct, I always say there are two types of affordability. The amount the bank is willing to give you and the amount you are willing to pay!
Love it
Thanks dude!
Thank you so much! Everything I needed and explained perfectly. I’m eternally grateful 💕💕💕
@@Nerdish913 more than welcome! Glad I was able to offer you some guidance ❤️
The houses I was looking at are flying off the market within days, no chance to negotiate.
It’s a crazy one at the moment! It’s definitely not following the traditional route of high interest rates = less home sales!
Why is it all about mortgages ?
If I am a first time buyer at 58 and have the cash to buy a place what advice have you got for that ?
Same rules apply buddy! In fact your in the best kind of position when buying a house 💪
Do the brokers charge both the lender a commission and the buyer a fee?
@@pattersonellen brokers will get a fee from the lender but only if and when the mortgage completes. So some brokers will charge a fee for their services up front just in case the mortgage doesn’t go ahead you see
@@simon_walton does the lender usually give a commission? The reason i ask is a broker is asking a friend for a fee when they will also get a commission from the lender. She doesnt know if she will get better value elsewhere where the broker gets just commission from the lender.
@@pattersonellen@pattersonellen Lenders will always pay brokers commission but only once it's complete, but some brokers will charge a fee, like we do (£376, by the way). There is a lot of work to do up front, and the commission from the lender isn't always guaranteed as some clients will pull out of deals (for whatever reason), yet our work was done. I hope this makes sense buddy :)
Hi, thank you for uploading this video. I have a question as I am very interested in purchasing a house with a mortgage. Given the current global situation and the looming fear of war, I’ve researched and found that no home insurance companies cover destruction caused by war. I don’t mean to sound negative or morbid, but I would like an honest opinion about proceeding with a house purchase despite these concerns. While I understand that no one can predict the near future, my eagerness to own a home is being hindered by the current news and the fear of war. What is your opinion on this matter? Do you think it would be wise to buy a house this year?
-Cath G.
Hi Cath! No problem at all, I hope it helped! You can buy a home with the option to get home insurance, which also includes war coverage! There will never be a "convenient time" to buy a home! So my suggestion would be, if you find something you love, go for it!
Hi Simon! Thanks for your response! Do you know any inusrance companies here in the with such coverage? Thank you!
@@orthodonticsclinic5021 where are you based?
@@simon_walton I am in Wales, UK
@@orthodonticsclinic5021 Give AXA a look :)
My credit is bad does that mean I will never be accepted for a mortgage?
Not at all! Tbh, I’ve seen some crazy bad credit scores and we have still been able to source a mortgage for them. Just be proactive on fixing your report 🤙