mortgage now we have a baby

uschiland

We have to move because we now have a baby and cannot afford our current mortgage.

Will we be able to get a mortgage with only a modest salary. We require a mortgage of about £108,000 and can afford to pay approx £550 per month which is approx 5 times my salary. Does anyone know a lender who will lend 5 times a salary? Or do you have any other ideas please?

herbiesjp

I would suggest a more detailed explanation of your current situation would be beneficial - but you may not want to post here on the board.

A brief generic answer to your question, is that there may be some lenders that will look at the figures you are quoting - as they base lending on affordability and not income multiples.

It also depends a lot on the kind of credit score you get with the lenders as to how this is then calculated.

5 times salary is a bit of a stretch however.

Who are you with at present?
What term is left?
interest only or repayment?

As you can see there are a lot of things to consider, all of which affect what the lenders will agree on.

Let us know if you need any more information

Fairdo_2

I would add the point that, if you go back to your existing lender and explain that you are trying to plan ahead before problems start, then they may be very symapathetic to your plight and agree that you will be able to move and borrow less money, as this will actually protect their interests somewhat. Obviously get their firm agreement first before doing anything about it.

Also, if this was not achievable, then it would be very important to get in touch with them and make arrangements with the property you are currently in. i.e, they may agree to reduce your contractual monthly payments, as Lenders do have to treat customers undergoing financial difficulty, with sympathy and act in a positive manner to resolve any issues.

The sooner you get in touch, the less damage is likely to be caused.

I am not aware of whether your circumstances have changed dramatically, (As well as the Baby of course!) since taking out the current mortgage, or if indeed the baby was planned at the time the mortgage was being organised, but the new rules with regulation are supposed to take posible issues like this into account. Congratulations, by the way.