Is there a mortgage lender out there...

53
Found 7th Jun
Who will actually lend based on affordability rather than just 4/5 times salary?

I only earn £24k and a 1 bed flat is £160k. I’ve got £24k to put down (15%) which I could raise to 32k (20%) if I had to. However I’m being pushed back by brokers as everyone is just going off this stupid 4/5 times salary rubbish.

Based on 15% deposit on £160k property repayments would be £630ish fixed for 3 years. More than manageable on £1600 take home pay.

Does anyone know a lender who would actually use common sense rather than a eligibility calculator.

Single applicant btw.

I’m not asking for the earth here am I?
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Possible 6 x salary at Rockhopper
Alternatively, have you looked into shared ownershipped flats
Lot of lenders got their fingers burned offering higher and a lot of people found themselves in negative equity. I'm old enough to remember multiple recessions. I also remember when 10% was considered low for mortgage interest rate and that would eat up a substantial part of a £1600 salary. It might seem frustrating but there are reasons for it and mortgage lenders now have a much higher burden of responsibility to ensure repayments are affordable these days.
The whole thing is a joke. Banks say you can only afford ‘£800’ a month mortgage payment. So if your affordability isn’t higher enough you end up paying ‘£1200’ rent. Which according to the lender you can’t afford.
marshy517 m ago

The whole thing is a joke. Banks say you can only afford ‘£800’ a month mor …The whole thing is a joke. Banks say you can only afford ‘£800’ a month mortgage payment. So if your affordability isn’t higher enough you end up paying ‘£1200’ rent. Which according to the lender you can’t afford.


Very true but it you don't pay the rent you owe the landlord not them. If they are going to lend you £140000 they get to make the rules up.
psychobitchfromhell37 m ago

Very true but it you don't pay the rent you owe the landlord not them. If …Very true but it you don't pay the rent you owe the landlord not them. If they are going to lend you £140000 they get to make the rules up.



Isn’t that the whole point of having a deposit? So you stump up a bit to lessen the risk for the lender. They then have the buffer if it all goes pear shaped.

Also that theory doesn’t quite run as I could probably quite easily get a mortgage on a property up north for 100k with a 10k deposit. Mortgage would be £400 fixed for 3 years. I could still default on that or property could crash. It just makes it impossible for people in the south east to buy.
psychobitchfromhell55 m ago

Lot of lenders got their fingers burned offering higher and a lot of …Lot of lenders got their fingers burned offering higher and a lot of people found themselves in negative equity. I'm old enough to remember multiple recessions. I also remember when 10% was considered low for mortgage interest rate and that would eat up a substantial part of a £1600 salary. It might seem frustrating but there are reasons for it and mortgage lenders now have a much higher burden of responsibility to ensure repayments are affordable these days.




My old boss used to tell me about the 10% days. Didn’t sound fun at all but properly prices were a lot more affordable back then. Nothing like it’s been in the last 10 years. Rates will never go back to those figures as quite simply, most of the people who have bought in the last 10 years would be stuffed.

I understand the reasons. I really do. It’s just it’s too strict. The stress test that came in only recommends tests for a few percent rise. Even at 5% rates my mortgage 160k property, 15k deposit would only be £800. Not even half my salary. That’s without allowing for inflation in salary or promotions.

Its totally wrong.
Toptrumpet1 h, 14 m ago

Alternatively, have you looked into shared ownershipped flats



Purely because of my position I’m not interested in shared ownership. I’ve no interest paying rent to anyone at this current time. I’m fortunately able to move back home so will be doing that. Shared ownership and it’s rents are a con. Not only are you paying rent but the equity is being split. So the ladder is just getting taller and taller as you’re trying to climb it. Admitedly you don’t have to borrow as much but most of shared ownership properties are over priced and small new builds.
Toptrumpet1 h, 21 m ago

Possible 6 x salary at Rockhopper



Will have a look. Thank you.
Op, you say you want to buy in the South Easr, where about exactly as there may be alternatives.
Toptrumpet8 m ago

Op, you say you want to buy in the South Easr, where about exactly as …Op, you say you want to buy in the South Easr, where about exactly as there may be alternatives.



Milton Keynes
201526 m ago

Isn’t that the whole point of having a deposit? So you stump up a bit to l …Isn’t that the whole point of having a deposit? So you stump up a bit to lessen the risk for the lender. They then have the buffer if it all goes pear shaped. Also that theory doesn’t quite run as I could probably quite easily get a mortgage on a property up north for 100k with a 10k deposit. Mortgage would be £400 fixed for 3 years. I could still default on that or property could crash. It just makes it impossible for people in the south east to buy.


I'm sitting here up north in my four bed detached new build which cost £210000. There isn't a cloud in the skies and had a lovely day out in the countryside walking the puppy. It isn't always grim up north. 15% deposit is not a large deposit. It isn't bad but it isn't huge. You have to think how much the bank could sell it for it they repossessed. After they have to pay all the fees to get the house back and conveyancing they are going to be in there for a substantial amount.
There is a thing now called responsible lending. Financial institutions cannot lend more than is affordable. I totally get it is hard to get on the property ladder down south and yes I'm sure you have costed everything if you have managed to save that much. Thing is though, if someone lends you £140k and then you come back and say well I only earn £24k so I can't afford it, financial ombudsmen is going to come down heavily on them. I worked in banking for eons and I know how draconian the rules are these days. It works against you but there are reasons.
I believe as part of the affordability test they have to work out of you could afford it at say (6% interest rates - example not actual rate), they then calculate the payment and if you don’t have enough they won’t accept you, additionally for each child you have (even if they don’t live with you) they knock down £25k off of your maximum amount you can borrow.

It’s pretty strict under the rules implemented about 4 years ago to avoid another financial crisis. I would suggest going for a shared ownership, overpay the hell out of it then buy out the rest.
Edited by: "cmdr_elito" 7th Jun
Personally think mortgages are a p**stake now, how can people not buy standard properties without having so many problems, banks should make it easier for people who have jobs to buy a property.
Check out the responsible lending code which should explain why lenders are more circumspect than before
Just had a quick look on Rightmove and it might be possible to find a 2 bed at that price, although I don’t know Milton Keynes and the locations may not be very good. If you can get the funding as a suggestion try and find a 2 bed and perhaps sacrifice the best location because it will give you an option of renting the 2nd bed out if interest rates went up.
I know youngsters that have managed via Bank of Mum and Dad to do just that, buy a 2 bed flat, with a mortgage around £600 per month and then rent the 2nd bed out which covers the bulk of the mortgage thus theliving there in effect free of charge and managing to save at the same time.
201544 m ago

My old boss used to tell me about the 10% days. Didn’t sound fun at all b …My old boss used to tell me about the 10% days. Didn’t sound fun at all but properly prices were a lot more affordable back then. Nothing like it’s been in the last 10 years. Rates will never go back to those figures as quite simply, most of the people who have bought in the last 10 years would be stuffed. I understand the reasons. I really do. It’s just it’s too strict. The stress test that came in only recommends tests for a few percent rise. Even at 5% rates my mortgage 160k property, 15k deposit would only be £800. Not even half my salary. That’s without allowing for inflation in salary or promotions. Its totally wrong.


Prices were cheaper true, but wages were lower and interest rates were higher. I'm not sure that how much of your available funds is much different.
Regarding shared ownership, don’t just dismiss them out of hand. I’d rather own 50% and share the equity than be stuck living with parents or keep renting in the private sector.
psychobitchfromhell54 m ago

I'm sitting here up north in my four bed detached new build which cost …I'm sitting here up north in my four bed detached new build which cost £210000. There isn't a cloud in the skies and had a lovely day out in the countryside walking the puppy. It isn't always grim up north. 15% deposit is not a large deposit. It isn't bad but it isn't huge. You have to think how much the bank could sell it for it they repossessed. After they have to pay all the fees to get the house back and conveyancing they are going to be in there for a substantial amount.There is a thing now called responsible lending. Financial institutions cannot lend more than is affordable. I totally get it is hard to get on the property ladder down south and yes I'm sure you have costed everything if you have managed to save that much. Thing is though, if someone lends you £140k and then you come back and say well I only earn £24k so I can't afford it, financial ombudsmen is going to come down heavily on them. I worked in banking for eons and I know how draconian the rules are these days. It works against you but there are reasons.



I already moved “North” to Milton Keynes to buy my current property. Not sure I could venture any further away from London haha.
15% deposit is large enough. It’s all to do with how much I earn. I’ve worked it out that if I earned £28k they would lend me enough based on that. I could stick £50k deposit down in my current situation but that would leave me broke and if I did lose my job or health problems etc I am trying to avoid hardship.

I want to stick down 24k deposit. I could stretch to 35k but it still wouldn’t matter. It’s short sightedness.
cmdr_elito50 m ago

I believe as part of the affordability test they have to work out of you …I believe as part of the affordability test they have to work out of you could afford it at say (6% interest rates - example not actual rate), they then calculate the payment and if you don’t have enough they won’t accept you, additionally for each child you have (even if they don’t live with you) they knock down £25k off of your maximum amount you can borrow.It’s pretty strict under the rules implemented about 4 years ago to avoid another financial crisis. I would suggest going for a shared ownership, overpay the hell out of it then buy out the rest.




I totally agree regarding the test. They should be more responsible but see my example above. At 5% it’s £800, 6% would be £850/900 and those increase in rates wouldn’t happen overnight.

In in my eyes that’s still affordable. It wouldn’t be fun but that’s worst case.

I will I’ll look into shared ownership again. Maybe I was too quick to dismiss but I’ve heard some bad stories about them with extra fees when trying to sell or staircase. Also from my own position I just wanted this property for a few years. Have no interest in staying in it longer than that.
I feel for you, but have you considered how much higher house prices might be if lenders weren't responsible and just handed out money to everyone that said they could afford it?

That's exactly what we had 10 years ago, and it all ended in tears. Base rates are already as low as they're likely to go, there's only one way they're going to go now, and that's upwards. They're probably (hopefully) not going back to 10%+ anytime soon, but there's no reason whatsoever they couldn't get back up to 3%, 4% or even 5% in the first half of your mortgage term. So it's not just about what you can afford to borrow now, it's whether it will be sustainable for you if the economy worsens. Would you have enough left over to cover your bills, put food on the table and still be able to put enough money away each month to be able to carry on making payments if you suddenly found yourself out of work?

An increase in interest rates is probably already overdue in terms of bringing back some sanity to rampant house prices, but the BofE won't do it as they know the trouble it will bring for those already mortgaged up to their eyeballs, especially as no one yet knows exactly how resilient the economy is going to be in the next 12 months or so.
Toptrumpet37 m ago

Just had a quick look on Rightmove and it might be possible to find a 2 …Just had a quick look on Rightmove and it might be possible to find a 2 bed at that price, although I don’t know Milton Keynes and the locations may not be very good. If you can get the funding as a suggestion try and find a 2 bed and perhaps sacrifice the best location because it will give you an option of renting the 2nd bed out if interest rates went up. I know youngsters that have managed via Bank of Mum and Dad to do just that, buy a 2 bed flat, with a mortgage around £600 per month and then rent the 2nd bed out which covers the bulk of the mortgage thus theliving there in effect free of charge and managing to save at the same time.



Ye most of MK isnt great. I’ve thought about renting a room out and that was my initial plan. 2 bed flat 190k but then started to realise I won’t be able to borrow that much. Could easily get £500 for a room. Frustrating as £190k mortgage was about £700 with £30k deposit.
Thanks for looking though. Appreciate that.
Manny5054 m ago

Personally think mortgages are a p**stake now, how can people not buy …Personally think mortgages are a p**stake now, how can people not buy standard properties without having so many problems, banks should make it easier for people who have jobs to buy a property.



This is my gripe. I just want a 1 bed flat near where I work. Surely that should be doable. Even a 25% deposit wouldn’t be enough. I’m not exactly on minimum wage.
Would you be wiiling to find a better paid job, would that help
201522 m ago

I already moved “North” to Milton Keynes to buy my current property. Not su …I already moved “North” to Milton Keynes to buy my current property. Not sure I could venture any further away from London haha. 15% deposit is large enough. It’s all to do with how much I earn. I’ve worked it out that if I earned £28k they would lend me enough based on that. I could stick £50k deposit down in my current situation but that would leave me broke and if I did lose my job or health problems etc I am trying to avoid hardship. I want to stick down 24k deposit. I could stretch to 35k but it still wouldn’t matter. It’s short sightedness.


I lived in london. In Chelsea in fact. I hated it. Smelly busy and dirty. If I wanted my house but in Chelsea i would probably have to fork out about three million. I know you think it is short sighted, but in fact it is completely the reverse. The lenders have to have a bench mark.they have to have a line in the sand.
When I bought my first house it was 3.25% on our joint income. This was back in the nineties when you think it was all a walk in the park. It wasn't. It is never easy and the terms have to be generic. If you want one specially built, you'll end up paying a higher interest rate or loan to valuation fee.
Guzzle18 m ago

I feel for you, but have you considered how much higher house prices might …I feel for you, but have you considered how much higher house prices might be if lenders weren't responsible and just handed out money to everyone that said they could afford it?That's exactly what we had 10 years ago, and it all ended in tears. Base rates are already as low as they're likely to go, there's only one way they're going to go now, and that's upwards. They're probably (hopefully) not going back to 10%+ anytime soon, but there's no reason whatsoever they couldn't get back up to 3%, 4% or even 5% in the first half of your mortgage term. So it's not just about what you can afford to borrow now, it's whether it will be sustainable for you if the economy worsens. Would you have enough left over to cover your bills, put food on the table and still be able to put enough money away each month to be able to carry on making payments if you suddenly found yourself out of work?An increase in interest rates is probably already overdue in terms of bringing back some sanity to rampant house prices, but the BofE won't do it as they know the trouble it will bring for those already mortgaged up to their eyeballs, especially as no one yet knows exactly how resilient the economy is going to be in the next 12 months or so.



I hadn’t given it much thought if I’m honest. It makes sense but from what I remember house prices now are more unaffordable than they were at the height of the bubble.

My argument Is that I can afford it though. That’s exactly my argument. See examples above about 5/6% rate rises. Also surely if rates rise wages rise too. Not always an exact science but normally goes hand in hand. Even if not equally.

From a personal point point of view the £630 mortgage is a 3 year fixed mortgage. In that time from my repayamenfs and extra £10k equity would have been paid in. So with my deposit that’s £25k equity. The property in 3 years could be £190k £130k or it could even stay at £160k. The bank would still have my £25k equity to fall back on if I was to default.

Im keeping some of my money back for that exact reason, in case of unemployment or ill health. I’ll have 30k in my bank to cover me. This is what’s frustrating. I’m being rejected based on a simple salary calculator. I actually need a real person to asses me and they would seem im a responsible borrower and a sound investment. Sod this one cap fits all malarkey.

hope I’m not coming over as too argumentative and do appreciate all advice. It’s just really annoying.
Toptrumpet21 m ago

Would you be wiiling to find a better paid job, would that help



I would but I can’t unfortunately. Due to personal situations.

Need job history to get mortgage. So can’t switch jobs as that would take 6/9 months to go through probation etc and I have about 4/6 weeks before I’m out of my current house.

Currently have a sale going through but due to relationship break up we are splitting money and going separate ways. Ideally wanted to buy a small flat so could stay in area and stay in job but looks like I’m heading back to London and to never buy again
psychobitchfromhell16 m ago

I lived in london. In Chelsea in fact. I hated it. Smelly busy and dirty. …I lived in london. In Chelsea in fact. I hated it. Smelly busy and dirty. If I wanted my house but in Chelsea i would probably have to fork out about three million. I know you think it is short sighted, but in fact it is completely the reverse. The lenders have to have a bench mark.they have to have a line in the sand. When I bought my first house it was 3.25% on our joint income. This was back in the nineties when you think it was all a walk in the park. It wasn't. It is never easy and the terms have to be generic. If you want one specially built, you'll end up paying a higher interest rate or loan to valuation fee.




I honeslty do think it was a walk in the park. Please forgive me if I’m wrong and being ignorant but today’s buyers must have it harder than those back in the 90s. These days you literally pick between having kids or having a property!

If you don’t mind me asking or in fact answering do you remember how much you were on back then and how much your mortgage was. Just for comparison purposes.

The house I’m in now would be 750k back home in London. Bought it for £250k 3 years ago.
You tend to get a bigger loan through brokers than through a bank, so if you are turned down by the mortgage brokers then i doubt you will be able to get credit any where. Lending criteria is very strict now with new financial safeguards in place.

Have you tried several brokers?
20151 h, 34 m ago

Milton Keynes


I would like to know where in Milton Keynes there are flats for 160k? I’m in Emerson valley and that amount would be shared ownership,

I think your issue is the deposit. As others have mentioned 15% isn’t a large deposit. My understanding is 20% is a standard deposit?
Have you looked at the help to buy scheme too ? Only on new builds?
Gets you 5 years interest free
. "Rates will never go back to those figures as quite simply, most of the people who have bought in the last 10 years would be stuffed. "
This quote from you OP is so flawed , unfortunately at the height of high interest rates so many ordinary people lost their houses because they hadn't thought interest rates would rise so high. The stricter rules the banks have now are to try and prevent that happening again. I viewed more repossessed houses in that period than normal house sales when I was buying .
Dont get me wrong with two children who are preparing to buy over the next couple of years I fully appreciate how hard it is , but I also witnessed the problems of not having strict enough guidelines in place , and any business needs to learn from its historical errors.
nrackham7613 m ago

I would like to know where in Milton Keynes there are flats for 160k? I’m i …I would like to know where in Milton Keynes there are flats for 160k? I’m in Emerson valley and that amount would be shared ownership,I think your issue is the deposit. As others have mentioned 15% isn’t a large deposit. My understanding is 20% is a standard deposit?Have you looked at the help to buy scheme too ? Only on new builds?Gets you 5 years interest free



There’s a couple of 1 beds about for £160k. Fenny for instance.

My deposit isn’t the issue. I could increase that deposit to 25% but it still wouldn’t be enough. That would be £40k deposit but the mortgage would be £120k and no one apprears to want to lend me that as they all seem to go by the 4/5 times salary rule. Or 4.75 times I was told seems to be maximum.

So 24k x 4.75 is £114k add 40k deposit is £154. Still £6k short technically. Just to prove a point that a 25% deposit wouldn’t be enough.
Dont think I’m eligible for help to buy as I’m not a first time buyer.
mutley115 m ago

You tend to get a bigger loan through brokers than through a bank, so if …You tend to get a bigger loan through brokers than through a bank, so if you are turned down by the mortgage brokers then i doubt you will be able to get credit any where. Lending criteria is very strict now with new financial safeguards in place.Have you tried several brokers?



Brokers was a my first port of call as thought it might be difficult. Tried two brokers today. Might try s couple more tomorrow. Got annoyed after the second one as they talk and talk for 20 mins. Get all your details and then do the bloody eligibility calculator at the end. Pointless.
201510 m ago

Brokers was a my first port of call as thought it might be difficult. …Brokers was a my first port of call as thought it might be difficult. Tried two brokers today. Might try s couple more tomorrow. Got annoyed after the second one as they talk and talk for 20 mins. Get all your details and then do the bloody eligibility calculator at the end. Pointless.


it is difficult to raise credit as lenders are very cautious about taking on risk and new legislation put in place stops lenders lending too much so a lot of the time the lenders are unable to lend because they can not break the criteria imposed on lending.

we have raised capital through brokers in the past and find that we can raise more capital through them than walking into any high street bank.

try other brokers as you may find some can get you more credit than others, especially if the product has a higher fee attached to it.
tinkerbellian27 m ago

. "Rates will never go back to those figures as quite simply, most of the …. "Rates will never go back to those figures as quite simply, most of the people who have bought in the last 10 years would be stuffed. "This quote from you OP is so flawed , unfortunately at the height of high interest rates so many ordinary people lost their houses because they hadn't thought interest rates would rise so high. The stricter rules the banks have now are to try and prevent that happening again. I viewed more repossessed houses in that period than normal house sales when I was buying . Dont get me wrong with two children who are preparing to buy over the next couple of years I fully appreciate how hard it is , but I also witnessed the problems of not having strict enough guidelines in place , and any business needs to learn from its historical errors.



I honeslty don’t think they will go back to that level. I’m sure Mark Carney even said that rates can not go back to those levels and any rate rise will be gradual. I know there have been a lot of repossessions and that is definitely one thing we have to make sure doesn’t happen but because of how much people are having to borrow now 1% rate rises have a massive effect on mortgages. The more someone has to borrow the more they will feel the effect of the 1%.

As an example I’m currently looking at a flat (outside of Milton Keynes)
12th May 2016 £129k
29 August 2003 £88k
30th November 2001 £69,500
24th Feb 1995 £34,950

The 1% rate rise is gonna have a much bigger effect on the 2016 buyer than a 1% rate rise would have had on then 2003 buyers.


On my current mortgage because we had to borrow 200k every 1% rate rise would mean £105 increase to monthly mortgage.
201531 m ago

I honeslty do think it was a walk in the park. Please forgive me if I’m w …I honeslty do think it was a walk in the park. Please forgive me if I’m wrong and being ignorant but today’s buyers must have it harder than those back in the 90s. These days you literally pick between having kids or having a property! If you don’t mind me asking or in fact answering do you remember how much you were on back then and how much your mortgage was. Just for comparison purposes. The house I’m in now would be 750k back home in London. Bought it for £250k 3 years ago.


it is difficult to compare because I worked for a bank so got a mortgage subsidy. Perk of the trade. Also I could get a pension repayment mortgage on a pension paid by my employer. It wasn't easier, it was different. People spent their money differently then. No one had a 55 inch tv or the internet or a gaming system of even a mobile phone. That meant they could pay more of their outgoings on a mortgage. I only have one kid because I couldn't afford any more. My sisters have multiple kids because they were near grandparents and free babysitting. I was 250 miles away. The nineties were different but they weren't easier..
psychobitchfromhell1 h, 41 m ago

Prices were cheaper true, but wages were lower and interest rates were …Prices were cheaper true, but wages were lower and interest rates were higher. I'm not sure that how much of your available funds is much different.



Its funny you should mention that. There’s a guy at work who is adamnet he’s on the same money now as he was 20 years ago and then I had a delivery driver come in and say the same thing! Surely that’s can’t be right. can it?
Rightmove
I’ve no experience of shared ownership, but if you really exhaust all avenues to find a mortgage that will lend you what you require, just indulge me for a moment.
The rightmove link is a random Milton Keynes shared ownership property on the market for £70k for 40% ownership. To me it looks like one of the better aspirational properties currently on the market. Take out the £7.5k fixtures and fittings that I would expect free, the monthly rent payable to Guinness is £314 and service charge £51, totalling £365. On your salary Halifax would lend you £76k (taking the fixed £365 monthly outgoing into consideration) which would cost £260 per month over 25 years.
£260 + £365 = £625 which is less than the monthly market rental and you would be entitled to 40% of any equity made. You would then be left with the best part of £1000 per month to save which you could put toward purchasing a bigger % or just saving to go up the ladder again.
As this flat is 2 bed 2 bath you could rent out the other bedroom and put that toward the rental part, so in theory you’re not paying that part if it irks you. The flat would also be large enough if in the future you found someone and start a family.
It’s not all about owning outright, it’s also about the lifestyle and options it would give you.
The flats that are on sale for £160k are they of the same calibre as the one in my example?
Do you get where I’m coming from ?????
psychobitchfromhell9 m ago

it is difficult to compare because I worked for a bank so got a mortgage …it is difficult to compare because I worked for a bank so got a mortgage subsidy. Perk of the trade. Also I could get a pension repayment mortgage on a pension paid by my employer. It wasn't easier, it was different. People spent their money differently then. No one had a 55 inch tv or the internet or a gaming system of even a mobile phone. That meant they could pay more of their outgoings on a mortgage. I only have one kid because I couldn't afford any more. My sisters have multiple kids because they were near grandparents and free babysitting. I was 250 miles away. The nineties were different but they weren't easier..




I just looked up average wage for 1995. £17k apparently! Averages can often be over egged. Average for this year is 27k so they say. So let’s take 20% off that 17k to be conservative. So £13500 average salary in 1995. The flat I mentioned above was £35k in 1995...
3 x a low wage. I’d much rather be buying a house back then than now, that’s for sure
Toptrumpet9 m ago

RightmoveI’ve no experience of shared ownership, but if you really exhaust …RightmoveI’ve no experience of shared ownership, but if you really exhaust all avenues to find a mortgage that will lend you what you require, just indulge me for a moment.The rightmove link is a random Milton Keynes shared ownership property on the market for £70k for 40% ownership. To me it looks like one of the better aspirational properties currently on the market. Take out the £7.5k fixtures and fittings that I would expect free, the monthly rent payable to Guinness is £314 and service charge £51, totalling £365. On your salary Halifax would lend you £76k (taking the fixed £365 monthly outgoing into consideration) which would cost £260 per month over 25 years.£260 + £365 = £625 which is less than the monthly market rental and you would be entitled to 40% of any equity made. You would then be left with the best part of £1000 per month to save which you could put toward purchasing a bigger % or just saving to go up the ladder again. As this flat is 2 bed 2 bath you could rent out the other bedroom and put that toward the rental part, so in theory you’re not paying that part if it irks you. The flat would also be large enough if in the future you found someone and start a family.It’s not all about owning outright, it’s also about the lifestyle and options it would give you. The flats that are on sale for £160k are they of the same calibre as the one in my example? Do you get where I’m coming from ?????



I applaud your effort.

The 160k flat in question is in a better part of town but is only 1 bed. Broughton is literally like a new town. 5k homes built on a bit of land on the other side of MK. Nothing wrong with it just a little but further away.

There always seems to be fixtures and fittings extornate rates attached to them as well. Some of them are laughable.

Those sums do add up though. Quite a nice flat too

Thanks
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