How much would you need to earn for a £510,000 mortgage

It's variable and there's other factors to consider but as a general rule mortgages currently go up to 4-5x salary, so assuming a 10% deposit you'd need a salary of £91,800-114,750.
 
Firstly look at median not average. Secondly, with 10% deposit, about 100k.
 
chaparral said:
WOW that crazy :eek: i earn less then half that :(
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Why is it crazy? A £459,000 mortgage at 3% over 25 years would have repayments of £2,177 per month, or £26,124 per year. You would need to have said salaries to afford that on top of other expenses and living, which is also where other factors come in.

Not to mention most people would be buying properties of said value as a couple, and highly likely not as a first time buyer and therefore you'd probably have a larger deposit in the form of equity.
 
chaparral said:
WOW that crazy :eek: i earn less then half that :(
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You have a couple of options

Lower your expectations of type of house.

Move to a location that gets you what you want at a price you can afford

Increase your household income

Find a partner who earns a decent amount too...

Its difficult. But get on the ladder early

Buy a house that needs renovating. You can make serious $$ doing that and it'll get you up the ladder quite quickly too
 
-Sorry guys am not buying a house myself as am to old now (51) to be able to get a 25 year mortgage.

I was just wondering what someone would need to earn these days to be able to buy an average price house over here
 
chaparral said:
-Sorry guys am not buying a house myself as am to old now (51) to be able to get a 25 year mortgage.

I was just wondering what someone would need to earn these days to be able to buy an average price house over here
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As above, you're assuming a lot if you're judging someone who lives in said house. In basic terms the bigger the mortgage the smaller the loan and the lower the salary requirements.

If you're not a first time buyer then you're highly likely to have more than a 10% mortgage in equity in your previous house, or if you've just got a bigger deposit through savings, inheritance etc then the salary could be lower.
 
chaparral said:
Guys how much would you need to earn to be able to get a £510,000 (Average house price) mortgage over 25 years ?
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You're missing a key bit here, although touched on by others, if the house price is 510k, then you're going to need at least a 10% deposit, 15% really to get a decent interest rate at the moment.

So you're talking mortgage of closer to £433,500. Giving a salary of £86.7k+. Very few of the banks will also do joint mortgage of 5x, so that's you and partner having a joint salary of £86.7k+, but realistically you start to get into very few lending at 5x, and your rates again get a little less competitive, so you might want a 4.5x joint - £96k, or about £45-50k each.
 
chaparral said:
WOW that crazy :eek: i earn less then half that :(
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TFW you should have tried harder at school :p j/k

Though to be fair you're living in a literal tax haven full of millionaires, not sure you should be comparing the "average" property price as you have a somewhat distorted property market whereby some property is a open market and some is locals only - really you should be looking at the locals only properties if you're a low wage local.

Also, given tax haven, you ought to be better placed to save/invest! You have a flat 20% income tax and no GCT even FFS, your entire stock portfolio (if you have one) is basically an unlimited ISA account!
 
People buying a house at that cost level are often putting down a lot more than 10% as a deposit.
 
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