Have you ever looked at the most luxurious homes in Bolton and wondered what you would have to earn to buy them?
When considering you for a mortgage, lenders take a number of things into consideration- a big aspect of which is your annual salary.
They will assess you incoming and outgoings and will generally lend anywhere between 2.5-4.5 times 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.
With that being said, here are five of the most expensive homes for sale in Bolton and the estimated salary you would need to buy them.
Ravenhurst Drive, Bolton
Cost of the house: £2,300,000
10% deposit: £230,000
Minimum salary needed: £105,276 per year
Total salary when mortgage is 28% of total: £375,985
Many would describe this nine bedroom home as their ‘dream’ property.
It has a cinema room, en suite bedrooms and even a gymnasium.
However, if you want to afford a mortgage on this house you are going to need a very high paying job and possibly have some celebrity status.
To live comfortably and still afford this home, it’s estimated that you will need to be earning around £375,985- and this is after taxes.
This figure also doesn’t take into account household running costs, such as water and energy bills.
According to research by Plumplot (data visualisation website), the average salary for in Bolton as of 2019 was £30,000 per year.
This means it would take the average Boltonian around 12.5 years to afford one year’s mortgage on this property.
View more about this property on Zoopla.
Longworth Road, Egerton,
Cost of the house: £1,950,000
10% deposit: £195,000
Minimum salary needed: £89,265 per year
Total salary when mortgage is 28% of total: £318,771 per year
We recently took a look inside this property and explored the property’s luxury interiors.
It has five bedrooms and even a plant room to admire- but how much would a mortgage at this house cost?
If you want to live comfortably, you need to be earning over £318,000 a year.
On top of the mortgage, Zoopla also estimate that the running costs will add a minimum of £6,312 to your annual bill.
You can find this property on Zoopla.
Four bedroom house on Regent Road, Lostock
Cost of the house: £1,800,000
10% deposit: £180,000
Minimum salary needed: £82,392
Total salary when mortgage is 28% of total:£294,257
There’s no denying that this is a gorgeous property and a piece of architectural beauty.
It has four bedrooms, a stone feature wall and a lot of thought has been put into the finishing touches.
However, if you want to afford some of this house your annual salary needs to be somewhere around £300,000 a year.
It will take the average Boltonian six years to afford the 10% deposit alone- and that’s if every penny of their wages went into their savings account.
You can view this property on Zoopla.
Old Kiln Lane
Cost of the house: £1,700,000
10% deposit: £170000
Minimum salary needed: £77,808
Total salary when mortgage is 28% of total: £277,885
On the market for a six bedroom farmhouse?
This property could be yours- if you earn over £270,000 a year.
This doesn’t even take into consideration of running costs, which Zoopla estimates to be around £6,624 per year.
However, if you put down a higher deposit of 20% on this house, your monthly repayments drop drastically.
With a higher lump sum payment in the beginning, your new total salary when the mortgage is 28% of total is around £248,485 per year.
5 bedroom house on Regent Road, Lostock
Cost of the house: £1,695,000
10% deposit: £169000
Minimum salary needed: £77,616
Total salary when mortgage is 28% of total: £277,200
This might be the cheapest property on the list- but this doesn’t meant the mortgage is any more attainable for the average person.
This luxe property has a cinema room and even a swim spa, complete with a jacuzzi hot tub.
However, if you’re going to live the celebrity lifestyle you will also need the bank balance to match.
To afford this property, the average Boltonian will need to save for £9.2 years, just to afford one year’s mortgage.
View all the statistics about this property on Zoopla.
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