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Is this the right or wrong time to buy a house?

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based on traditional figures you would be able to get either 3* on your own, 3* +1* as joint or 2.5* combined.

 

If you actually look at affordability though, 2 people on the same salary increases disposable income by a huge amount. If mortgage payments will be £500/month then this is very difficult for someone taking home 1k. It's a lot more affordable for a couple taking 2k between them.

 

I can't prove it, but I don't think that the majority of FTBs are buying on their own anymore.

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Yes you are right that the disposable income is greater based on economies of scale but the actual difference that makes to the increased mortage borrowings is minimal sometimes less in the grands scale of thngs. The lender doesnt take this into account and still offers the limits you have presented.

 

Bottom line is work out whats the best deal for your circumstances and check the legality of a "partner" or spouse living in a property with a mortgage in joint names or a mortgage in one name. There can be technicalities.

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i disagree. many lenders do calculate how much they'll lend on affordability rather than just bog-standard 3x (or variations thereof) salary. i moved house and consequently mortgage recently, and our IFA said that although many lenders advertise their maximum as 3x or whatever, if you actually ring and ask them, most will lend more than that, depending on affordability.

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Yes you are right that the disposable income is greater based on economies of scale but the actual difference that makes to the increased mortage borrowings is minimal sometimes less in the grands scale of thngs. The lender doesnt take this into account and still offers the limits you have presented.

 

Bottom line is work out whats the best deal for your circumstances and check the legality of a "partner" or spouse living in a property with a mortgage in joint names or a mortgage in one name. There can be technicalities.

 

I'm not sure what technicalities you refer too. I'm pretty sure that mortgage lenders have no say over who you allow to live in your house.

They can only have some influence if you formalise and arrangment and start letting out a room.

 

There are quite a few products on the market that are based on affordability rather than multiples. It's a bit more work to get one, but if you actually have relatively high disposable income then it can be worthwhile.

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i disagree. many lenders do calculate how much they'll lend on affordability rather than just bog-standard 3x (or variations thereof) salary. i moved house and consequently mortgage recently, and our IFA said that although many lenders advertise their maximum as 3x or whatever, if you actually ring and ask them, most will lend more than that, depending on affordability.

 

quite, someone can have a decent income but be spending most of it on credit card repayments and the like.

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