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How much will I need to buy a house?

How much money do I need to buy a 500K house?

  • Recently my parents divorced and we were forced to sell my lovely home :( I have vowed to one day buy it back, I have no idea about mortgages etc so if I wanted to buy a 500K house how much money would I actually need etc?

  • Answer:

    On such a high value property you would need an absolute MINIMUM 10%, or preferably 15% deposit, which means actual real cash upfront - not a loan of any description. That would be around £50,000 - £75,000 you need to save. On top of that you would need to pay stamp duty to the government of 3%, which would be another £15,000, and your legal fees and search fees, etc, for which you need to allow a further £2000. You would be left needing a mortgage of at least £425,000, so you would need to be earning in excess of £140,000 per annum for such a mortgage to be approved. (Most lenders will allow up to 3 x annual salary on a mortgage.)

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Well if it's a 500k house, then i'd probably think you'd need 500k to buy it.

MyCool

assuming it was today: - you'd never get a 100% mortgage, you'd need a massive deposit to get a say £400k mortgage - current rates are about 5%, so you'd be paying £20k a year in repayments - stamp duty; you'd want them to sell it to you for just under £500k to get the rate at 3%, then the duty would be about £20k - fees, survey; about another £1k move on.

thewaythingsare

We don't know how old you are but if you're underage now forget it. You won't even know if it would be for sale, let alone be able to afford to buy it back if you earn. The price of houses generally go up. The answer is the same even if you are old enough now and if you are, why not pop into an estate agent for advice.

MaryBlue

that is quite an amount for a house on a mortguage, it would depend on your income and if you were elegable to the amount through repayments. it would entirely depend on the mortguage deal that you get as to the down payment http://www.mortgage-calc.com/mortgage/howmuchofadownpayment.html it would be something like 10-15% and you would be paying about £7000 a month to repay it.

Insane_mad_maniak

Mortgage lenders will give you 3 times annual income thus you would need a job paying 175k a year.

Ariaread

probably about 80k

Lee M

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