living beyond my means

want2bmortgage3

when i got my mortgage it was because i had a big deposit saved and my income wasnt taken into account.

now i'm stuck with a £18k job and a £105k mortgage at £644/month

i'm wondering if i did things by the book (got an income based mortgage) what would they have lent me? whats a realistic % of my income (around £1100 a month) to pay into a mortgage?

i ask as i am possibly renting the property out and living cheaply in order to overpay and bring the mortgage down to a more easy to live with level.

thanks guys.

Kavanne

what rent would your property bring in? would it even cover the mortgage? that's the most important thing! Also have to factor for Letting agent fees (if you want) and any repairs that might need doing.

want2bmortgage3

well they said i should get 825 a month minus 15% fee. i'm not sure if they also take VAT on top of that? it would just about cover the mortgage i think.

Jacka87

To answer the question about how much they will lend, they are currently lending upto around 5times your salary in some banks. So would prob not have made too much of a difference but you have left yourself a bit short.

In terms of renting out the property, you havent mentioned what type of property you have however I was told my flat had a rental income of around £600-£700pcm. Its a 2 bedroom flat so I rented out the second bedroom myself (without letting agents using website etc)> I am now onto my second flatmate both have been great and I recieve £450pcm since I started. Would it be an option for you to rent a room out?

I also realise that renting the whole flat out will prob cover your mortgage just but cant help to wonder, where will you live???

_Andy_

want2bmortgage3 wrote: »

when i got my mortgage it was because i had a big deposit saved and my income wasnt taken into account.
.

Surely you declared what your income was?

Dan_1976

Hang on, what do you mean income was not taken in to account? Unless you took it out a long time ago when only a declaration of affordability was needed (Only a few lenders mind) you would have had to declared an income.

Sorry toseem like I am attacking you but a claim like that could get a broker or lender in trouble.

Brokers are being struck off, most that are, probably deserve it but you have to be careful.
Can you explain more?

want2bmortgage3

Well either my mortgage broker lied about my income or I had a big enough deposit to get a non status mortgage? I dont know the details now it was several years ago.

silvercar

could it have been a buy-to-let mortgage based on rental income?

_Andy_

If your broker lied you would've lied too (by signing the forms).

Was your income the same back then?

geoffky

In 2007 45% of all mortgages where liar loan type where income was not checked....so thats a lot of brokers who need prosecuting.


http://www.guardian.co.uk/business/2009/may/12/self-certified-mortgage-fraud