Chances of a mortgage

huwy123

Hi All,

I've seen a house I like going cheap (!) and I was wondering whether people think I'll have a problem getting a mortgage given the current climate.

I earn xxk, my missus xxk and we're looking at borrowing £xxxk with a xxk deposit.

A complicating factor is that we are both on other mortgages. I owe xxk with about xxk in equity, the other half has a mortgage with her sister who may well be in negative equity.

I appreciate there are a number other factors to consider, but based on the evidence above do you think it'll be a problem?

-Huw

youngmcc

If you dont get a mortgage based on your figures then sadly I think we're all up !!!! creek :rotfl:

huwy123

I just thought that lenders might take a dim view of the other mortgages.

JimmyTheWig

Deposit / LTV is fine.

It's affordability that is the issue.
I believe the mortgage company would work out how much they can offer you. lets say they say 4 times joint salary. 4 x (40+18) = 232. They'd then subtract your existing mortgages from this. Now, 232 - 80 = 152 so if it wasn't for your wife's mortgage you might be ok. But with the two existing mortgages I think you will struggle.

Are any of the properties to be let out? Can you use this income to boost your figures?

And anyone looking to buy a house at the moment should seriously consider it. The chances are prices are going to come down.
Fair enough the house you have seen might look cheap at 230k, but no-one else has bought it yet so it can't be that cheap.
if prices drop by 5% in a year (a conservative estimate, I'm sure) then the equivalent house would be £11,000 cheaper this time next year. If you save the £9,000 you would be paying in mortgage interest on the new place over that next year too, that would mean a mortgage of 135k - which might be more realistic.

huwy123

wow - quick responses on here!

My house will be let - my missus pays nothing towards the other mortgage.

Does that help?

_Andy_

huwy123 wrote: »

wow - quick responses on here!

My house will be let - my missus pays nothing towards the other mortgage.

Does that help?

If the rental covers the mortgage payment then it will normally be excluded.

As for the other mortgage - regardless of the fact she doesn't pay anything towards it she is still legally liable for the debt so it will affect the amount that can be lent.

huwy123

so it looks like it will be a problem then!

_Andy_

How much is outstanding on her mortgage?

huwy123

120k.........

claretslass

Hi
I don't know if this is still the case but might be relevant. Approx 4 years ago when I was buying a house with my partner, and we were both on other mortgages, we were advised that Intelligent Finance were one of the only lenders not to take other mortgages into account. I don't know how or why this was the case but our application went through no probs. I had a house which I was living in at the time and my partner was still on the mortgage with his ex-wife pending their divorce so according to most banks we would have been refused.
About 18 months ago, my brother and SIL needed a bridging loan or mortgage to buy their next house while trying to sell their old one, I sent them in the direction of IF and they had no probs either. So it might be worth trying them?

herbiesjp

This might still be do-able.

You will need a broker to explain the exact situation to the lenders, to see how happy they will be with the scenario

Ever changing criteria will mean a whole of market broker will be best place to search the best deals for you, as the two mortgages you already have could be a stumbling block.