THERE’S no denying that East Lancashire is home to some gorgeous and expensive properties- but is it realistic to live in them without being a celebrity?
We’ve crunched the numbers and estimated how much you need to earn in order to get a mortgage for some of the million pound houses and live comfortably in them.
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.
With that being said, here are five of the most expensive homes for sale in East Lancashire and the estimated salary you would need to buy them:
Waddington Road, Clitheroe
Cost of house: £1,545,000
Deposit: £154,500
Minimum annual salary needed: £70,728
Total annual salary when mortgage accounts for 28%: £252,600
This is one of the most expensive homes for sale in East Lancashire right now- and it’s clear to see why.
It has eight bedrooms, a gym and even benefits from its own cinema room.
However, if you want to live here it’s estimated that you will need to earn around £252,000 per year.
The initial costs are also expensive as you have to fork out at least a £154,500 deposit and pay £84,150 on top of this.
You can view this property on Rightmove.
Twiston, Clitheroe
Cost of house: £1,250,000
Deposit: £125,000
Minimum annual salary needed: £57,228
Total annual salary when mortgage accounts for 28%: £204,385
This period manor house dates back to the 1700s.
It’s described as a “wonderful family home” that is bursting with charm and character.
However, you need to be very well off in order to afford it.
It’s estimated that your annual earnings need to be more than £204,000.
You will also have to pay an eye-watering £53,750 stamp duty on top of the £125,000 deposit.
View more information and statistics about this property on Rightmove.
Bowden Avenue, Pleasington, Blackburn
Cost of house: £999,995
Deposit: £99,000
Minimum annual salary needed: £45,816
Total annual salary when mortgage accounts for 28%: £163,628
This “impressive” detached barn has six bedrooms and two bathrooms.
It’s also far too expensive for a person on the average wage.
According to statistic visualising website, Plumplot, the average wage in Blackburn is around £32,000.
This means it will take years for the average worker in the town three years to afford the deposit alone- and this is if they put every penny they earn towards it.
You can find this property on Zoopla.
Meins Road, Blackburn
Cost of house: £965,000
Deposit: £96500
Minimum annual salary needed: £44,172
Total annual salary when mortgage accounts for 28%: £157,755
As much as you might want to live in this five bedroom house with a sweeping driveway, it’s not practical for the average worker.
If the average Blackburn worker earns £32,000 per year, this means it will take three years to afford the deposit alone.
Once you add the additional £25,250 stamp duty cost, it will take them even longer to save up the funds.
Learn more about this property on Zoopla.
Woodend Road, Burnley
Cost of house: £795,000
Deposit: £79500
Minimum annual salary needed: £36,384
Total annual salary when mortgage accounts for 28%: £129,942
This might be the cheapest house on the list- but the mortgage is still too expensive for the average person.
According to Plumplot, Burnley workers earn £28,000 per year on average.
This means it will take the average Burnley worker £2.8 years just to afford the 10% deposit on this house.
View this property on Zoopla.
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