Want to get a mortgage Is it possible now?

forsya

Hello

Me and my partner would like to buy a house after renting for a few years.

We have £25k deposit and we both earn £22k, but our bank would only lend us £147, which would give us £172 to buy something, which in the South East of England is not possible! We were looking to buy something for £220.

We are mortgage virgins, so any advice would be helpful, should we give up and just save another £25k somehow or will there be people lending out there, if so who? We have been paying £1000 per mth for rent and bills and still saving so can afford mortgage re-payments, and I thought £25k was a good start for a deposit! But clearly not...!

Many thanks for any help/suggestions

: ) A x

Kavanne

you need a larger deposit OR a larger income. simples.

Sorry but 90% is most you will find out there and lenders won't go up to silly income multiples anymore.

opinions4u

forsya wrote: »

We have £25k deposit and we both earn £22k, but our bank would only lend us £147, which would give us £172 to buy something, which in the South East of England is not possible!

It depends which part of the South East. I just picked a town at random (Basildon) and found 551 properties under £175k that are currently on the market. www.rightmove.co.uk

We were looking to buy something for £220k.

With a bigger deposit you may find lenders to be more flexible with their income multiples. You could also be more flexible with your choice of location, property etc. You might find that a £40k deposit gets you £160k of mortgage lending.

We are mortgage virgins, so any advice would be helpful, should we give up and just save another £25k somehow or will there be people lending out there, if so who?

Have you tried a whole of market mortgage adviser who will be able to better understand your needs and where the market might provide for them?

We have been paying £1000 per mth for rent and bills and still saving so can afford mortgage re-payments, and I thought £25k was a good start for a deposit! But clearly not...!

Well here's a few more bits to factor in:

- stamp duty (1% if buying for £175k+, free if less than £175k) ... £2,250
- solicitors for purchase ... £600
- survey fee ... £500

(figures are a very generic guide but, as you can see, your deposit needs to do a lot more than simply buy equity in a house!).

A £200k mortgage on a 5 year fixed rate with a major high street lender would probably cost just under £1,500 a month. Plus all the bills on top of that. I think that's a stretch to your budget. Can you really afford it?