What mortgage for my situation?

powned

Hi all,

My brother and i are house hunting at the moment, we intend to share a mortgage (been renting for years). We are looking at 3/4 bedroom propertys with the intention of renting out any spare rooms .
We would like to spend around £140000 max on a property but we are only able to lend about 80k according to the mortgage calculators. I know that some places will lend higher multiples of your combined income but all the guides ive read fail to mention any of these companys.

Also a friend who works in a bank advised us to lie about what we earn... whilst i appreciate her advice i take it with a pinch because i cant imagine banks lending out hefty sums without first checking your finances.. can anyone confirm this? - I know this might seem like an unwise route but i currently pay rent much higher than the cost of an interest only mortgage based on £140000 so i have proved that i can afford it (to myself anyway!).

So, if anyone could advise me on how/where i can lend more than the standard ammount, and if there are any penaltys for taking this route? and what type of mortgage would be best? I would be greatfull.

thanks :T

Ian_W

Do take your friend from the Banks advice with a pinch of salt - if you follow it and get caught - the good news is you won't NEED a mortgage - the bad new is you'd better like porridge!! Lying to obtain a loan is called mortgage fraud, so I'd steer well clear if I was you.

Banks and other lenders do require proof of earnings usually through pay slips, P60s and Bank Statements so the only way to inflate your earnings is through self certifying but these are under close scrutiny ATM because of people doing that.

Hopefully one of the brokers who post will be along shortly but 2 lenders I've seen suggested with more generous lending criteria than most are Northern Rock and Chelsea.

lightspeed

Try nationwide and A + L. Both will lend on affordability. We got quoted 3.75 times our joint income. Any higher than about 4 could be very risky though.

herbiesjp

DO NOT LIE ABOUT YOUR INCOME! That is mortgage fraud!

The lenders have their multiples thier for a reason - to lend responsibly - they are not obliged to lend you any money.

If your income stackes up then fine - if it does not, then it would suggest the property is out of your means.

Property is £140k, but what depsout do you have and what are your two incomes?

Do you have nay other liabilities in the background i.e. loans/cards/HP etc that a lender would need to make deductions for?

powned

Thanks for the replies, i thought telling fibs was a bit cheeky but didnt realise it was illegal! im probably asking silly questions but im new to all this. I know i could afford it but i am now looking for properties a lot further down the market but thats quite depressing as i can only afford high crime areas.
I sort of presumed in my ignorance that you could lend more if you where going for an interest only mortgage but i guess thats not the case?
are there any other 'creative' but LEGAL ways to lend more? one option i have come across is to split the mortgage between 3/4 people.. i guess its things like this i am looking for.

edit: Just tried the nationwide affordability calculator and they came back with 136000

homer_j_3

There are companies that look at affordability rather than income multiples. This ususally works in the fovour of the borrower where the borrower has very little outgoings, ie. no loans or credit cards.

As I am not sure of your circumstances etc, I would suggest that you seek profesisonal advice from a whole of market adviser.