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

Usually you work up to more expensive houses. Start on something you can afford, pay off the mortgage for a few years and then work up to another property
 
If memory serves, Gurnsey has two sets of prices: one for citizens and one for non-citizens, and the latter are highly restricted.
 
The issue for us was not the deposit bar it was more the earning threshold.

An example of how hard it was and now is.
My partner doesn't earn much (20k?) I at the time was on 35k.
So to get the first house we (me really) wanted (detached, garden, garage) meant the bar was high (250k ish)

I believe they'd lend us 220 (4x). And that was queried on affordability .. "how are you living expenses so low?" the mortgage provider asked.
"No TV licence, 10 pound mobile phone contacts, no car finance, no credit, no kids" was the answer.

So that's a 260k house with 40k deposit in Feb 2020

Obviously the deposit was therefore way over the 10 percent bar. Giving a 85 percent ltv.

Fast forward to now.. Estimates are at 295k for the same house

If we were on the same 55k joint salary they'd be a short fall 35k for the very same House 2 years later. No way you can keep up as a first time buyer.

That's 35k extra deposit in 2 years. Crazy.

This is all about average too. Average earnings, average house.

No wonder people can't afford kids


Added to that.. 260 won't get you much in a lot of places. You simply have to move.
 
mattyg said:
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
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Or self build!
 
Getting an interest-free Interest Only mortgage will allow you to borrow more too. I know a few folks who do this, the idea being is that you just pay interest free Interest Only on a family home, then later in life when you retire, sell up, hopefully make a profit, and downsize.
 
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neodude said:
Getting an interest free mortgage will allow you to borrow more too. I know a few folks who do this, the idea being is that you just pay interest free on a family home, then later in life when you retire, sell up, hopefully make a profit, and downsize.
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Lol, an interest FREE mortgage? Yes, please.
 
neodude said:
Getting an interest free mortgage will allow you to borrow more too. I know a few folks who do this, the idea being is that you just pay interest free on a family home, then later in life when you retire, sell up, hopefully make a profit, and downsize.
Click to expand...
I think you may be confusing terminology. I don't think Interest free is a thing with mortgages. Interest only used to be a thing but not so much nowadays. Lifetime mortgages are a thing in other countries where debt and assets pass to will beneficiaries.
If there are interest free mortgages - I'll sign up and do some spread lending :)
 
neodude said:
Getting an interest-free Interest Only mortgage will allow you to borrow more too. I know a few folks who do this, the idea being is that you just pay interest free on a family home, then later in life when you retire, sell up, hopefully make a profit, and downsize.
Click to expand...
Profit being quite creatively calculated here, unless you have someone else serving the interest payments for you aka BTL
 
Thats very low, relates to the ten year treasury rate probably. I think rates will return to 5% one day but till then its a sellers market

I like the idea of 50% or similar size deposit and having the choice of the best fixed rates which in theory could be profitable instead of the alternative threat of rising variable rates
 
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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Go speak to Gower would be my recommendation from experience :)

https://www.gowerfinancialservices.com/personal/mortgages

I used them for my first Guernsey property purchase to get on the ladder in 2019, since then I've moved in with a partner and we're both now selling our respective propreties to buy something together - we've used Gower again as the broker to find us the best deal to suit our circumstances. May I ask, who's your employer locally? If you can get your mortgage through Butterfield bank they use different lending criteria to a lot of the mainstream banks and can lend silly amounts (they were prepared to lend us 900+k!).

Buying properties here you're definitely going to be better off buying a "doer upper".
 
silversurfer said:
Thats very low, relates to the ten year treasury rate probably. I think rates will return to 5% one day but till then its a sellers market

I like the idea of 50% or similar size deposit and having the choice of the best fixed rates which in theory could be profitable instead of the alternative threat of rising variable rates
Click to expand...

That 1.09% is based on 60% LTV.
 
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