is there any chance to get a mortgage with 15% without proof of income

ashrafman

Hi there
me and my wife have about 27K saving and we would like to buy a flat for 170K.
the problem is that the proof of income that we can show is just 17K per year.
I spoke with about 3 brokers but they asked me 25% deposit.
is there any chance to find a Broker to get for me a mortgage and I pay just 15 %.?

thanks

Fire_Fox

If you are running a legitimate business you would have proof of income. If you aren't find a crooked broker and you can get a mortgage for pretty much whatever you want.

benjo

So you earn 17k jointly per year, using salary multiples of 3.5 you would be able to borrow just under 60k + your 27k savings = you could buy a property valued at 87k, assuming you also have additional funds to pay your solicitor etc.

You want to borrow 143k that is around 8.4 x your yearly income, I doubt anyone would lend you that much.

Your monthly income is £1400 before tax and national insurance and your monthly mortgage repayment assuming a rate of 5.5% would be £888 - you cant afford to pay that much. At 7.5% your monthly repayment would be £1069 - probably near 100% of your take home pay and you really cant afford that.

I wouldnt think anyone would be prepared to lend to you with these numbers, since it is pretty certain (on paper) that you cannot afford this and the property would be reposessed, further, due to your low deposit there is little chance of the lender getting their money back.

lozzie84

hiya we are in a similar situation, we were asking for a 25k mortgage and had a 45k deposit and were turned down by every mortgage broker we asked. We couldn't prove our income as we are student even though the mortgages were come out at £150.00 a month.

All the brokers are scared because they're expecting to get audited by the fsa unless you know a dodgy broker which we couldn't find lol

Trollfever

From the Office of Fair Trading 30th July 2009.

The draft guidance identifies types of policies and procedures that the OFT would expect lenders to put into practice. These include:
Ensuring all key information provided to prospective borrowers is clear and easily understandable and properly explained to them.
Assessing a prospective borrower's ability, in the context of their overall financial circumstances, to afford to meet repayments in a sustainable manner.
Dealing with borrowers in default or arrears in a fair and proportionate manner, seeking to repossess a borrower's property only as a last resort.

http://www.oft.gov.uk/news/press/2009/93-09

Thrugelmir

lozzie84 wrote: »

hiya we are in a similar situation, we were asking for a 25k mortgage and had a 45k deposit and were turned down by every mortgage broker we asked. We couldn't prove our income as we are student even though the mortgages were come out at £150.00 a month.

All the brokers are scared because they're expecting to get audited by the fsa unless you know a dodgy broker which we couldn't find lol

May seem a daft question but where is your regular income generated from?

Not only to pay the mortgage but the bills. Fortunately dodgy brokers are going out of business.......

Ian_W

ashrafman wrote: »

the problem is that the proof of income that we can show is just 17K per year.

Is that your income? If it is, as has already been stated, you ain't going to get a lender to offer over 8X your income in the present financial climate and even in the past one you'd probably have needed a self-certified liar loan to get it.

If that isn't your income, why can't you prove it? The only reasons I can think of is that in some way it's illegal - whether that be tax evasion, drug dealing or something else that means the earnings aren't kosher.

is there any chance to find a Broker to get for me a mortgage and I pay just 15 %.?

If you fall into the first category chance is somewhere between zero and nil. If you fall into the latter category ... thought you'd have known a dodgy one already!:rotfl::rotfl:

lozzie84

Thrugelmir wrote: »

May seem a daft question but where is your regular income generated from?

Not only to pay the mortgage but the bills. Fortunately dodgy brokers are going out of business.......

As students we receive a student loans in which most student manage to pay rent far higher that £150.We were only asking for a 35% mortgage and were we putting down a 65% deposit so thought that lenders would be a bit more reasonable.

It doesn't really matter we have just snapped up a house @ 43K in a lesser desirable area but we wont have to pay rent and we were not getting much interest from the bank

creditboy

So you can prove 17k? Do you have more income than this? If so where from and why can't you prove it? No one will lend you money based on figures you can't prove, even more so in this climate.

SouthCoast

so thought that lenders would be a bit more reasonable.

Have you checked your credit files recently and got the defaults removed?

lozzie84

Mortgage was going to be in my OH name because he is not as stupid as me to get into any debt was so ever. I am going to be applying for a DRO because I can't see anyway of paying off my debts which I have been trying to clear for 6years now. Would like to go back in time and tell myself not to get a CC at 19.