Salary needed to afford York’s most expensive homes

Have you ever thought about the wages you need to earn in order to pay for a million pound home in York?

We have crunched the numbers and estimated the annual salary you would need to afford a mortgage for some of these pricey properties.

Along with the minimum income needed, we have also calculated how much you would need to earn in order to live comfortably and still pay the bills.

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 five of the most expensive homes for sale in York and the estimated salary you would need to buy them:

St George’s Place
Cost of house: £1,595,000
Deposit: £159500
Minimum annual salary needed: £73,008
Total annual salary when mortgage accounts for 28%: £260,742

This is one of the most expensive home for sale in York and it’s clear to see why.

It has a whopping 10 bedrooms and even more bathrooms (11).

However, your estimated annual salary needs to be more than £260,000 if you want to live comfortably.

As well as the £159,500 deposit you would also need to pay £90,150 stamp duty if you are a first time buyer.

Learn more about this property on Zoopla.

St Martin’s 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

St Martin's Place property (Photo: Zoopla, Carter Jonas)

Recently, we took an in-depth look inside this property to see why it had such a high price point.

It turns out, you need to have an estimated annual salary of  more than £245,000  if you want to get a mortgage on this property.

According to data visualisation website, Plumplot, the average salary in York is around £34,000.

This means it would take the average worker 4.4 years just to afford the deposit on this house- and that’s without spending a single penny on themselves.

Learn more about this property on Zoopla.

Hobgate
Cost of house: £1,300,000
Deposit: £130 000
Minimum annual salary needed: £59,508
Total annual salary when mortgage accounts for 28%: £212,528

This property costs £1.3m (Photo: Zoopla, Carter Jonas)

This impressive house has five bedrooms and is described as a “statement property”.

However, you might need to have celebrity status in order to afford the annual mortgage.

It’s estimated that your annual wage needs to surpass £200,000.

This figure doesn’t even account for the additional running costs of the property, which Zoopla estimates to be an additional £6000 per year.

Discover more facts and statistics about this property on Zoopla.

Heslington Lane
Cost of house: £1,250,000
Deposit:
Minimum annual salary needed: £57,216
Total annual salary when mortgage accounts for 28%: £204, 342

Inside the property (Photo: Cater Jonas, Zoopla)

This stunning four bed converted property doesn’t come cheap.

It’s estimated that you will need to earn over £200k a year in order to live comfortably here.

If the average wage in York is £34,000, then this means it would take the average person 1.5 years to afford one year’s mortgage (£57,216) at this place- and this is without spending any money on themselves.

Want to learn more? Visit Zoopla.

Esplanade Mews, Peckitt Street
Cost of house: £1,200,000
Deposit: £120,000
Minimum annual salary needed: £54,924
Total annual salary when mortgage accounts for 28%: £196, 157

This is a newly built home (Photo: Zoopla)

This newly built townhouse has four bedrooms and “stunning” modern interior.

It might be the cheapest place on this list- but that doesn’t mean the mortgage is any more affordable.

The 10% deposit alone is an eye-watering £120,000; you would also have to pay stamp duty on top of this which would cost £48,750 for a first time buyer.

Learn more about this property on Zoopla.