Mortgage Estimation

[Scarlett]

If I bought a house for £160,000 roughly what would the cost be per month?
Would I be allowed to borrow this amount (first time buyer) if I was earning £23,000 per year?

[bednobs]

no, no lender is going to lend you nearly 7 times your annual salary - probably about 1/2 of that

[EcclesCake]

How old are you what term would the mortgage be for?
Rrepayment or interest only?
How much deposit would you be putting down?

You need to give us a bit more info.

[factor-fiction]

Depends on the type of mortgage and interest rate deal you can get.
Interest only at 4% pa would be close to £6400 a year which is around £530 a month

[bednobs]

depending on the rate and term as a rough estimate i'd say £1k a month

[bednobs]

ps my figure was repayment rather than interest only over 25 years

[boxtops]

Some mortgage lenders are lending for long periods than 25 years now, that brings the monthly cost down - but you wouldn't get that full amount on your salary. You need to shop around.

[Buenchico]

You've not mentioned the deposit!

Prior to the worldwide banking crisis, many lenders would offer a mortgage of up to (or even beyond) 5 times the gross income of the borrower, with perhaps only a 5% deposit (or even less) needed. Because that crisis was largely caused by people defaulting on their mortgages, lenders are now much more cautious about lending. You typically now require a deposit of at least 15%, with a lending limit set at around three times gross income for most borrowers.

As you'll see from here, mortgage rates are currently around 4%
http://tinyurl.com/bh3tr4o
but this calculator, from the BBC, wisely also shows how much you could end up paying if mortgage rates rose to 12%. (They've been above that figure within my memory):
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Chris

[factor-fiction]

There are several online calculators you can use.
Here's an example
http://www.ybs.co.uk/campaigns/mortgages/index.html?cmpid=831