The Law That Lets You Legally Steal Houses

How Much Can I Borrow on a 30k Salary in the UK?

What is a mortgage and how does it work? A mortgage is a loan taken out from a lender to purchase a property. The borrower pays the lender a fixed or variable interest rate over a period of time, usually 25 years or more. The borrower is usually required to provide a deposit, usually around 5-20% of the property value.

If you’re looking to purchase a property in the UK and have a salary of £30,000, it’s important to know how much you can borrow. Mortgage lenders typically assess the amount of money you can borrow by looking at your income and expenditure. The more income you have and the fewer expenses you have, the more likely it is that you’ll be able to borrow a higher amount.

Income

Your income is one of the most important factors that lenders consider when deciding how much you can borrow. Most lenders will assess your income by looking at your salary, bonuses and any other sources of income. Your income is used to assess your ability to meet the ongoing mortgage repayments.

Expenditure

Your expenditure is also taken into account by mortgage lenders. This is to assess your ability to make the repayments on the loan. Your expenditure includes things like your rent, bills, groceries and other regular outgoings. The more money you spend each month, the less you’ll be able to borrow.

Affordability

Lenders will also assess your affordability. This means looking at how much money you have left over each month after all your expenses have been taken into account. This is to make sure you’ll be able to afford the mortgage repayments. The more money you have left over each month, the more you’ll be able to borrow.

Credit Score

Your credit score is also taken into account by lenders. This is a score that lenders use to assess your creditworthiness. A good credit score indicates that you’ve been managing your finances well and are more likely to be able to make the repayments on the loan.

Loan to Value Ratio

One of the key factors that lenders assess when deciding how much you can borrow is the loan to value (LTV) ratio. This is the ratio of the amount of money you’re borrowing compared to the value of the property. The higher the LTV ratio, the less money you’ll be able to borrow. Most lenders will only lend up to a maximum of 85% of the property value.

Deposit

Your deposit is also taken into account by lenders. The larger your deposit, the more money you’ll be able to borrow. Most lenders will require a deposit of at least 5% of the property value.

Income Multiplier

Most lenders will use an income multiplier to assess how much you can borrow. This is a ratio of your income compared to the amount you’re planning to borrow. The higher your income, the more you’ll be able to borrow.

Based on the above criteria, someone with a salary of £30,000 will typically be able to borrow up to around £200,000. This is based on a loan to value ratio of 85% and a 5% deposit.

Key Points:

• Lenders assess how much you can borrow by looking at your income and expenditure.
• Your credit score is taken into account by lenders to assess your creditworthiness.
• The loan to value ratio is the ratio of the amount you’re borrowing compared to the value of the property.
• Most lenders will require a deposit of at least 5% of the property value.
• Most lenders will use an income multiplier to assess how much you can borrow.
• Someone with a salary of £30,000 will typically be able to borrow up to around £200,000.

How much can I borrow on 30k salary UK? – Review

Start using Dashlane to stay safe online for free at http://Dashlane.com/HAI
Get 10% off upgrading to premium by using the code, “HAI” at checkout

Get a Half as Interesting t-shirt: https://standard.tv/collections/half-as-interesting
Suggest a video and get a free t-shirt if we use it: http://halfasinteresting.com/suggest

Follow Sam from Half as Interesting on Instagram: http://Instagram.com/Sam.From.Wendover

Follow Half as Interesting on Twitter: http://twitter.com/halfinteresting

Discuss this video on Reddit: http://www.Reddit.com/r/halfasinteresting

Check out my other channel: http://youtube.com/wendoverproductions

Episode written by Adam Chase
Music by Epidemic Sound

Thanks for watching the The Law That Lets You Legally Steal Houses video!

Watch the The Law That Lets You Legally Steal Houses video on Youtube

The Law That Lets You Legally Steal Houses – How much can I borrow on 30k salary UK?

ByRobert Dunfee