Best mortgage for couples/ multiplers

lynzpower

Hi there gang

I want to sell my flat ( Ive overstretched) and move somewhere with OH thats smaller and cheaper.

I earn 25k. OH isnt permanent anywhere yet ( not for the want of trying!) but on a conservative estimate we reckon his income will be 18k. I will have 10k equity by the time it comes to move.

We have found some places that are 150 some slightly less, and we are happy to pay this, but of course the cheaper the better We may make some money on this place ( its shared ownership, so no idea how much really, anything we do make will go towards the equity in the new place)

Now the thing is, we dont know which order to do this in. Obv OH needs to go perm asap. thats the 1st thing. then he'll need 3 months payslips, minimum.Once this has done do we a) get a valuation of this place b) get a mortgage agreed in principle so we know what we can be looking for. thing is that online calculators tell us we can get 118 which is hopeless for us, but we are paying out almost a grand a month here and nothing to show for it as we are on an IO ( well I am, hes not on the docs)

Want to get out of this trap asap - is there a product that looks at affordbility? OH has little debt & I hope to be out of debt by October- ish.I know im impatient, but Id like to see if theres a)an affordibility product we can base some ideas around before we see a broker ( no point seeing a broker until oH has a p[erm job is there?) and so we are thinking everything through as best as we can.

your input appreciated x

AndrewSmith

Hi,

You are right to think about this now and to do the numbers way in advance. Preparation is the key to anything.

Regarding OH. As long as when he begins his new job he is outside of any probationary period then it is not always necessary to have 3 months service/payslips. The lender would likely conduct an employers reference however this should be fine if he is on a permanent contract.

Be wary of some online calculators as they are completely factual and some do not take into account the enhanced income multipliers applied by some lenders. Also some of them are sponsered by an individual lender thus will only relate to that lender's criteria.

Affordability is another way of looking at it, you are correct. Such lenders include Nationwide, Alliance & Leicester and the Cheltenham & Gloucester have just launched a new affordability model. There are many others but it is foolish to name names until you know whether you fit that particular lender's criteria. No point in telling you about something you cannot have after all.

It will also depend on the level of outstanding debt and the monthly payments you make. Along with your credit history.

If you know of a broker why not get him / her to carry out a hypothetical search for you based on what you think the level of income that OH is likely to get? That way at least you will know which lenders are in the running?

Hope this helps

Andy


P.S. Love you signature, the Serenity Prayer is one of my favourite sayings

:beer:

lynzpower

Andrew, very much appreciated there. Ive sent you a PM, and taking into account your sig too

Thanks for the sig comment I love it too, along with another favourite "If you are not part of the solution you are part of the problem!"

AndrewSmith

Hi Lynz,

Have got your PM and have just replied. Sorry it took so long lol

Andy