will we gat a mortgage?

thriftymomma

Could you overpay for the first three years so you have a lesser mortgage to secure when your 3 years is up?

_Andy_

dhassen wrote: »

I can't believe that banks / lenders are still lending 4x joint salaries for mortages in todays market. Has anyone actually experienced this, say in the last month?

4x income is relatively standard. (Assuming no huge outgoings on debts)

sjaypink

pinkshoes wrote: »

You could probably borrow 4x your joint salary (so £144k), but would also need a 10% deposit for most mortgages now, plus £1k for solicitors, £1500 stamp duty, moving costs etc...

So you'll need to save up about £17k before thinking about buying a house.

yes its not that we want to move immediately, just that my decision on this job, and whether to work pt or ft rests on how that will effect mortgage chances really.
we have access to 2k for costs- we thought that would just about cover it? are we way out? (not moving costs though as we would do this ourselves).
could get another 5k for deposit if necessary, but would rather wait to save ourselves if thats how much we need.....

still not sure how mortgages are evaluated? do the lenders take into account outgoings as well?

thanks everyone

lostinrates

_Andy_ wrote: »

4x income is relatively standard. (Assuming no huge outgoings on debts)

we were not offered this a few weeks ago. We were offered 3.5 x DH's this year income. No debts at all, a deposite of approx 33% using that offer..i.e. 50% of mortage offer again in savings). we were chuffed at the time. We also had contract proving Dh would have a reasonable rise next year and a humoungous :cool: rise the year after (double next year's salary) in a fairly recession proof job.

To be fair it was not a whole of market mortgage broker but direct offer from a few lenders.

It would be interesting to see how easy it would be in a few weeks time and what sort of offers we are receiving then

ginvzt

From my experience they just want to see your salary numbers. Although things might be changing withthe credit crunch. The only outgoing the wanted to see for us was any other loans or credit cards, not childcare (although there are no children yet!)

Naf20

Most lenders now want to see your outgoings as well. When we applied for our mortgage last month they wanted to see 3 months of bank statements. They need to check your overall affordability and ability to pay back the loan which i think is a very good idea.

Captain_Mainwaring_2

sjaypink wrote: »

hi, have searched through other threads but as things are changing rather rapidly right now with mertgages/ house prices, i thought it might be easier to start my own.

basically we rent at the moment and didnt think we would ever be able to afford a house, but have noticed prices are slowly coming down, and friends had an offer of 180k accepted on a 220k house last week, which got us thinking.

oh earns 17k pa. a job has come up for me at 19k ft, or 9k if i take pt.
i was going to go for the pt, as it would effectively mean we would be getting the same income (flexi time so could work without paying for childcare). ft means more money but lots of childcare to pay out.

so anyway my questions are;

1, do mortgage lenders only look at income? (would they just accept we earned 36k, or would they check and realise that after childcare it is far less?)

2, i know up until recently mortgages were available for upto 6x income, and there were options for those with bad credit too, but how are things now? our credit is not perfect, and we would only have 5k deposit- so what kind of mortgage might we get for 36k, and also for the 26k?

thankyou in advance.

edit; just realised loads of typos! hope you can read it ok!

It's not a 220K house then is it?
Unless I am missing somthing very basic here.

steadysaver

sjaypink wrote: »

hi, have searched through other threads but as things are changing rather rapidly right now with mertgages/ house prices, i thought it might be easier to start my own.

basically we rent at the moment and didnt think we would ever be able to afford a house, but have noticed prices are slowly coming down, and friends had an offer of 180k accepted on a 220k house last week, which got us thinking.

oh earns 17k pa. a job has come up for me at 19k ft, or 9k if i take pt.
i was going to go for the pt, as it would effectively mean we would be getting the same income (flexi time so could work without paying for childcare). ft means more money but lots of childcare to pay out.

so anyway my questions are;

1, do mortgage lenders only look at income? (would they just accept we earned 36k, or would they check and realise that after childcare it is far less?)

2, i know up until recently mortgages were available for upto 6x income, and there were options for those with bad credit too, but how are things now? our credit is not perfect, and we would only have 5k deposit- so what kind of mortgage might we get for 36k, and also for the 26k?

thankyou in advance.

edit; just realised loads of typos! hope you can read it ok!

Q. Will you get a mortgage?

A. No

sjaypink

Captain_Mainwaring wrote: »

It's not a 220K house then is it?
Unless I am missing somthing very basic here.

well no obviously. what i meant was that current prices advertised in the estate agents windows are now appearing to be way off what some sellers are prepared to accept. i appreciate that of course there has always been room for negotiation, but nowhere near this extent in recent years.

sjaypink

steadysaver wrote: »

Q. Will you get a mortgage?

A. No

because of the income, the deposit, current reluctance to lend, outgoings, or all of this?!