Regular readers may know that despite being a mortgage broker in Guildford, we are in fact a national mortgage broker. However, there’s no getting around the fact that, as a Guildford mortgage broker, we have a large number of clients that live in and around the area.
And, as we regularly field calls from the Guildford community asking for advice when it comes to getting a mortgage (how much deposit do I need?, how much do I need to earn?), we thought we’d prepare an article that’s solely dedicated to those looking to apply for a mortgage in Guildford.
So, where shall we begin? Ah, yes – first-time buyers.
Guildford first-time buyer mortgages
Well, we can start by saying that with average Guildford first-time buyer property prices coming in at £399,000 – up 3.5% from the same time last year – there are cheaper places in which to live.
This is compounded by the fact that median salaries come in around £43,000 a year, which pushes the boundaries of affordability. It also begs the question ‘how much do I need to earn to buy a house in Guildford?’.
As our team of Guildford mortgage advisers are asked this question on pretty much a daily basis, we’re well-placed to answer it. So, here are two examples based on property prices of £300,000, which sits below the area’s average and is likely to cover a modest flat, and £528,000, the cost of a typical semi-detached property in the area.
What you need to earn to get a mortgage in Guildford
For a flat priced at £300,000, the prospective buyer will ideally need a deposit of 10%. So, let’s say that they have saved £30,000, then the mortgage amount required is £270,000. Let’s divide this by the typical income multiple of 4.5 x earnings, and the gross salary required to secure a £270,000 mortgage is £60,000.
Let’s not forget that whilst Guildford’s median salary is £43,000, there are a large number of people earning far more than that, making a £300,000 property accessible. It’s also worth pointing out that a couple buying this property on an equal basis would each need to earn £30,000, making homeownership even more affordable.
For the £528,000 property, let’s keep the deposit at 10%. In this case, the deposit required would be £52,800, leaving a required mortgage amount of £475,200. Again, divide this by the 4.5 x earnings ratio and the gross salary needed to buy this property would be £105,600. For a couple earning above average earnings, this is also relatively accessible.
Whilst we have worked with a “typical” 4.5 x earnings ratio, there are options available at up to 6 x earnings, or above. Contact us in the first instance for guidance.
Everyone’s circumstances are different
Whether you’re a high earner or have been left a hefty deposit as inheritance, everyone’s finances differ. As a result, the best way in which to determine your affordability and get a clear sense of the properties available to you is to contact a mortgage broker.
And, if you’re a looking to buy a property in Guilford, then why not speak to a Guildford mortgage broker (and by that we mean us).
Looking for a mortgage broker in Guildford? Contact our team of Surrey mortgage advisers by calling 01483 238280 or e-mailing info@complete-mortgages.co.uk.
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