Whats the largest mortage we could get?

deeplyconfused_2

I earn £23500 as a teacher. My partner earns £30800 plus a bonus of approx £1500. In addition to my salary I earn approx £800 per month (£9600pa) as a private tutor - this is in cash and I am unable provide any kind of proof of this. We have a large deposit - approx £90-100k.

How much can I borrow? Any suggestions as to having lenders take cash income into account.

Davidboy

I am sure someone will come up with some figures for you, but can I suggest that you go into a local building society. They will give you good advice on how much they would lend you and what deals they have at the moment, and the most important bit how much it will cost you. Their advice is free cos they are after your custom!

I re-negotiated my mortgage with C&G, nowadays they are very approachable, don't decide there and then shop around if you are thinking of getting a mortgage.

Best of Luck.

D

MortgageMamma

This depends on your credit rating and the mortgage thats selected, but for example, one particular mainstream mortgage on the market at present will allow you to lend up to 4.4 joint salary, add your deposit to that minus any annualised amounts of finance commitments and you have your figure, however if you want to declare the 9000 I imagine you would have to go self certified (non verification of income). The rates are very slightly higher for these mortgages but still competitive, but bear in mind with a larger mortgage even a slightly higher rate can make a significant difference, therefore it would be preferable for you to go full status on your mortgage. There won't be a problem adding your partners bonus into the equation as long as its a regular/guaranteed bonus.

Before you make any commitment to a particular property or mortgage I would recommend that you seek some initial advice from a whole of market mortgage advisor, who should also inform you of legal costs, stamp duty and related insurances and basically help you through the purchase. You can get this advice for free from some brokers "fee's free". A mortgage could be the biggest financial commitment you will ever make, so its imperative to take advice.

HTH, GL and let us know how you get on.
L

TangentMan

Remember that the largest mortgage you can get is not just based on what someone will lend you, its based on what you can afford. Unless you have a desperate need i wouldn't go outside the mainstream lending (i.e. the amount a high-street lender would lend you). On that basis i wouldn't mention the extra £9k. Its tempting to max out, but then there might always be a rainy day around the corner.

Most lender's websites have a how much can i borrow calculator that will give you an idea.

deeplyconfused_2

Thanks for the advice.

My credit rating is good. Unfortunately I live in London and the classic 2.5x joint income simply isn't enough, even with a large deposit. With a reasonable cash income we can afford a largish mortgage. I don't want to go down the self-certification route if it can be avoided.

one particular mainstream mortgage on the market at present will allow you to lend up to 4.4 joint salary

Which provider MortgageMamma?

Thanks

exil

By the way I think you should be paying tax on your private tutor income. I'm surprised no-one else has mentioned this!

galaxyone

Sorry to hijack your thread, but as a fellow teacher I am interested in doing some private tutoring too....how many hours work is this and when do you 'fit it in' ?

marty1888

MortgageMamma wrote:

one particular mainstream mortgage on the market at present will allow you to lend up to 4.4 joint salary

Does anyone know who this is?

cattie

marty1888 wrote:

Does anyone know who this is?

I think it could well be Northern Rock as I understand they allow a higher multiple than some.

MortgageMamma

Re the post about paying tax on private income, how do you know that deeplyconfused does not declare this to the inland revenue? He does not state this anywhere in his post. There are plenty of people that work for cash and declare it, most tradesmen, decorators, plumbers etc work this way. I think you are being rather assumptive here. And sorry guys, no I'm not going to post the lenders name, the particular lender may not be suitable for you anyway, best way to find out it to visit a whole of market mortgage intermediary, who will assess your circumstances and requirements in full before making a recommendation on how you may achieve your goals as cheaply as possible.

MortgageMamma

No, its not northern rock, good guess though.