Have you ever looked at the most luxurious homes in Warrington and wondered what salary you would have to be on to afford it?
We have done the maths and calculated the annual salary you would need in order to get a mortgage on the most expensive properties in town.
Along with the absolute minimum income needed, we have also calculated how much you would need to earn in order to live comfortably and still pay the mortgage.
How do lenders check if you can afford a mortgage?
When applying for a mortgage, lenders take a number of things into consideration, including your annual salary.
David Ross, Managing Director at Hometrack, the leading provider of insight and intelligence to the mortgage market, said: "Ultimately lenders will be focused on your creditworthiness and whether you can afford your repayments.
“Generally lenders will lend up to 2.5x your gross annual salary but this can vary depending on a number of factors including the amount borrowed, the size of your deposit, the interest rates available and how long you wish to borrow the money for.”
Mr Ross also added that some “good advice” is to try and keep your mortgage repayments to “less than 28% of your gross monthly income.”
He added: “That way you should have plenty of money left for the essentials or to put away for a rainy day.”
How we did the maths
We worked off the Hometrack recommendation that mortgages should be 28% of your total annual income
It’s worth noting that the figures for the properties are just estimates based on a 2% interest rate, 10% deposit and a 25 year repayment term.
Each mortgage lender also has different requirements and eligibility tests when deciding who gets a mortgage and if they can afford a certain property.
With that being said, here are four of the most expensive homes for sale in Warrington and the estimated salary you would need to buy them:
Church Road, Lymm
Cost of house: £2,350,000
Deposit: £235,000
Minimum annual salary needed: £107,568
Total annual salary when mortgage accounts for 28%: £384,171
It’s clear to see why this seven bedroom property has such a high price point; it has seven bedrooms, six bathrooms and it is situated on an acre of land.
However, you’re going to need an impressive annual salary if you want to live here.
According to data visualising website, Plumpot, the average salary in Warrington is around £33,000.
This means that to afford the 10% deposit alone, they would have to work for over seven years and put every penny they earn into savings.
Want to learn more about this property? Visit Zoopla.
Beechwood Lane, Culcheth
Cost of house: £2,000,000
Deposit: £200,000
Minimum annual salary needed: £91,548
Total annual salary when mortgage accounts for 28%: £326,957
This five bedroom property is the pinnacle of luxury; it has a sauna and even benefits from a 4K home cinema.
However, you need to earn an estimated £326,000 per year in order to live comfortably here.
As well as the eye-watering £200,000 10% deposit, the new owner will also have to pay stamp duty.
For a first time buyer, the stamp duty on this property is £138,750.
Find more information and statistics about this property on Zoopla.
Glazebrook Lane
Cost of house: £1,800,000
Deposit: £180,000
Minimum annual salary needed: £82,392
Total annual salary when mortgage accounts for 28%: £294,257
If the interiors of this building weren’t impressive enough, there are also has thirty animal stables on the land.
However, the property is out of reach for the average Joe.
The average Warrington worker on a £33,000 annual wage would have to save for 2.4 years just to afford the deposit- never mind the additional costs involved.
When the £114,750 stamp duty is added on, they will have to save for a further 3.4 years.
Find this property on Zoopla.
Cliff Lane
Cost of house: £1,500,000
Deposit: £150,000
Minimum annual salary needed: £68,664
Total annual salary when mortgage accounts for 28%: £245,228
This impressive property has eight bedrooms and an extra two cottages in the grounds.
However, it’s estimated your annual salary needs to be more than £245,000 if you want to live comfortably here.
As well as the deposit, you will also have to pay stamp duty on this house which for a first time buyer is £78,750.
Get more facts and statistics about this house on Zoopla.
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