Can my friend get this mortgage in the current climate?

isayoldchap

For a few days my friend has been saying he has plans to buy another property.
Currently his flat was worth about 170k last summer.I guess around 20% less now.

He has plans to rent it out but still has a long term mortgage on it of around 70k.He's been advised by an estate agent that he could still get a tenant for 750pm.
Of course he has tried to sell it but no joy.
I told him he may have to market it for 130-140k and hope a quick sale can be made.

He wants to buy for around 225k but has only a small deposit.
He might see an IFA over the next few weeks once he is a little more positive about it.

He earns around 32k pa.and will be going alone.
Surely he won't get the mortgage he wants without the sale?

_Andy_

If he can rent it out and the rent covers (at least) the mortgage on the present place, that's taken care of (as long as his mortgage company consent to let).

Re the new place, how much deposit does he actually have? If he has, say, 10% deposit, he's wanting over 6 x his income - not going to happen at all.

isayoldchap

The rent will cover his outgoings on the flat (only just).
Unsure whether his current mortgage company will increase his intrest rate but I guess they will.

I believe he still things that IFA's can get him a higher mortgage that what he can afford

_Andy_

The only way that would happen is if he goes for a self-cert mortgage and lies / commits fraud on the application. Even then he's going to need a sizeable deposit.
Silly all round.

koexelek

_Andy_ wrote: »

The only way that would happen is if he goes for a self-cert mortgage and lies / commits fraud on the application. Even then he's going to need a sizeable deposit.
Silly all round.

Would need a 25% deposit at least.

Don't think you'd get many brokers prepared to take a case on like that these days anyway.
Only read this morning that a broker just got fined £100k for doing a case like that :eek: