FTB and amount of mortgage

Firsttimebuyer_4

Here's the situation.

I earn £29k and my partner is finishing university this summer and expects to get a job in September (not 100% but the demand is very high for her profession).

I am 30 years and my partner 25.

We are going to move to the SE and are looking at getting a house for around £200k - £250k as that is the price for the area we are moving to. We are looking for a repayment mortgage as we don't see the benefits of an interest only mortgage. Now, on my salary alone that is impossible since you only get 3.5 times your salary which means we'll only get about £100k on my salary. She is expecting to earn around £19k which takes our total earnings to about £38k. This still mounts to less than what we need.

We're not 100% sure on how we are going to find the 5% deposit, but we can always get a loan from the bank!

In addition her father has agreed to act as a guarantor should it be needed.

Here's the questions:

1) Is there any way we can get a £200k-£250k mortgage based on the above facts?

2) My partner does not have a job as she is finishin UNI, however, she is 99% guaranteed to get a job straight away due to the professions she's in (NHS)Does the mortgage lenders take this into consideration and give us a mortgage based on her expected earnings or will they only base it on actual earnings?

3) How much "extra" can we get by using her father as a guarantor? And are there any restrictions for who can be a guarantor. I.e is it based on his wealth (money in bank), income, value of his own house etc.

4) Would you advise us to get a loan from the bank for the 5% deposit. Let's say the deposit is £10k. She can get a "loan" from her father of £5k. I have about £1k in savings but I'm already pre approved for a loan in my bank for up to £15k at 9%. i could always start applying for loans elsewhere but I usually have to struggle quite a lot to get a loan since i'm not on the electoral roll (norwegian nationality). my current bank will give me the loan based on my history with them.

5) The "normal" repayment length is 25 years. Could we do 35 years and get a higher mortgage? We will most likely buy a more expensive house before the end of the morgage anway so we'll have to remortgage and can shorten the time on the new mortgage.

We WILL move to this area so looking for a cheaper house is not an option. We are determined to get this mortgage but need advice on how to get it.

Many thanks

Firsttimebuyer_4

Sorry for bumping this topic. Not sure if that's "allowed" or not. But i noticed this topic was now on the second page and no one ever looks that far down

homer_j_3

You really need to speak to a broker, however, your options are limited.

The guarantor basically means that they will be assessed on their ability to repay the debt in the event of default. This would therefore go on income and or possibly savings held.

Getting a loan for a deposit is a self defeating exercise as the monthly payments on the loan can actually reduce your income multiples and you are paying interest.

It is clear from your desire that you really want this and I am sure that it is going to be very disappointing if you cannot get this but cant you put off moving to the exact area, and get your foot on the ladder where it is more affordable and then when your partner has got some employment and you have built a bit of equity up then make the move?

frugglewump

Firsttimebuyer wrote:

1) Is there any way we can get a £200k-£250k mortgage based on the above facts?

Well from my experience - I earn £29k & my OH earns £20k, we were given a 100% graduate mortage from HSBC that is interest only for the first 3 years & then switches to repayment. Their broker definately allowed us to go up to £175k, and was willing to go to £200k - I can't say above that as we didn't need to ask. So it may be possible purely based on salary.

2) My partner does not have a job as she is finishin UNI, however, she is 99% guaranteed to get a job straight away due to the professions she's in (NHS)Does the mortgage lenders take this into consideration and give us a mortgage based on her expected earnings or will they only base it on actual earnings?

Actual earnings only as far as I know. Also we were told the length of time in the job was a factor.

4) Would you advise us to get a loan from the bank for the 5% deposit. Let's say the deposit is £10k. She can get a "loan" from her father of £5k. I have about £1k in savings but I'm already pre approved for a loan in my bank for up to £15k at 9%. i could always start applying for loans elsewhere but I usually have to struggle quite a lot to get a loan since i'm not on the electoral roll (norwegian nationality). my current bank will give me the loan based on my history with them.

I wouldn't advise it - but you know your in/out better than we do. I will say that with 7k of debt on loan & cards i did still get a mortgage.

5) The "normal" repayment length is 25 years. Could we do 35 years and get a higher mortgage? We will most likely buy a more expensive house before the end of the morgage anway so we'll have to remortgage and can shorten the time on the new mortgage.

I know of 30 year terms (we have one) no idea of longer.

Other board members know more than I do - but I thought you might find our experience helpful as the £ is so close to your situation.

nannyogg_2

some areas are also doing shared ownership housing for people in certain essential posts, may be another option

us,thecat&thedebt

dont forget its not just about being awarded the mortgage you have to be able repay it!!!!!!!!!

what if you have kids ect could u offord to repay on your own...

and no they wont go by predicted income only by actual earnings.. as already mentioned how long you hve been in your job affects it...

good luck

Firsttimebuyer_4

us,thecat&thedebt wrote:

dont forget its not just about being awarded the mortgage you have to be able repay it!!!!!!!!!

That's the thing...I know we can afford the repayments. Even with the other debts (which isn't a lot) we can still afford to live rather well.

But nowadays, it seems like it's all computer based calculators that make the decisions and they don't always take into account all the factors.

Thanks for your input frugglewump, that was really useful. We are actually thinking about going for a HSBC mortgage as my OH is banking with them and also got a career development loan with them.

VickyA_2

Firsttimebuyer wrote:

Thanks for your input frugglewump, that was really useful. We are actually thinking about going for a HSBC mortgage as my OH is banking with them and also got a career development loan with them.

Don't just go there because your OH has an account with them. I also have an account with them, but we're open to whoever has the best deal at the time on a mortgage. It may be HSBC, but then again it might be someone else.......

lynzpower

When i got my mortgage, they minused the amount of debt I had from the total (3.5 times salary) they offered. So I was offered 6k less overall.

SJHowitt

I'm so depressed!

I earn 12k, my partner 18k, we pay over £450 a month in rent, paid for by selling plants during the height of summer, odd jobbing, over time, and living as frugally as we can. We want to move closer to my job, and buy a house as the rent is killing us!

We are currently putting £1000 in the bank a month through various savings, and have around 10k in place already.

We have NO debts whatsoever no overdraft no repayments no credit cards nothing!

If we go for a mortgage we get laughed at. Because the drongos at the banks/ building societies only watch their PC. "computer says no". And our incomes are to low!

The house we can live with, not a dream house but has everything we need, is up for £115000. Thats a 3 bed semi in a good location close to work. a repayment will cost us according to the three banks we've looked at between 555 & 600 per month, which if you think about it, gives us 850 quid to spend on the nasty necessarys of owning a house.

We could save money if they let us buy this house! Money which would go straight into their pockets! :mad:

If anyone has any suggestions we would be very greatful to hear about them!

We've tried RBS, Halifax, The Cheshire,