Mortgage - max LTV

richie_greenuk

We have a Nottingham BS mortgage fixed at 5.6% for 3 years due to expire in 2011.
However, we are seeking to move and are looking at a new build at £170k but the Nottingham will only offer us x 4 of our salary. I have recently become self employed but am working at present also - our joint income is £34000 as the wife just works part time. We have a loan of £300 which finished in 2010 and have no other debts.
Are we likely to be able to get a mortgage elsewhere other than going the self cert route (which could be a problem due to the deposit)?

_Andy_

Ok well first of all how much deposit do you have?

Also is that joint income including the self-employed work or not?

richie_greenuk

I would have around a 10% deposit maximum.

The salary is not the including the self employed as I have only just started the business.

_Andy_

Not going to be easy to place - 4.5 x joint income.

Is it a flat or a house you're buying?
I'm assuming you've factored in the early repayment charges on your current mortgage that will need to be repaid when working out the deposit.

sdooley

Don't pay more than £150,000 for the house - then you can still borrow at those rates. Builders are desperate to shift stock, they will sell you the house at £150,000.

richie_greenuk

Its a house and yes we have factored in the early replayment.

sdooley - is that realistic though? The house is a new 3 storey townhouse and they do seem to be selling. How would I go about negotiating as it is quite a drop in valaution??

richie_greenuk

Just as a follow up, I have spoken with the builder and they have confirmed they offer part exchange on the property which is a HUGE plus for us.
However, are they likely to offer a good discount AND a decent part exchange price on our property?