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High Income Multiples
nmiah786
Posts: 577 Forumite
Hi All
Need some opinions and suggestions for a relative of mine;
He is looking at purchasing a house and has a big deposit but not that high a income with respect to the loan he requires.
Here are the figures;
Property Value: £250k
Deposit: £110k
Loan Required: £140k
Income: £25k
He does have a loan of £300 per month which will finish in October. No other debts.
His had problems with getting a mortgage from CIS and Chealsea so far, I've told him to stop doing anymore applications until I pass it through you guys.
I know its a very high income multiple but he can afford it and also he will have his borther helping him out with the mortgage.
Any suggestions?
Thanks all.
Need some opinions and suggestions for a relative of mine;
He is looking at purchasing a house and has a big deposit but not that high a income with respect to the loan he requires.
Here are the figures;
Property Value: £250k
Deposit: £110k
Loan Required: £140k
Income: £25k
He does have a loan of £300 per month which will finish in October. No other debts.
His had problems with getting a mortgage from CIS and Chealsea so far, I've told him to stop doing anymore applications until I pass it through you guys.
I know its a very high income multiple but he can afford it and also he will have his borther helping him out with the mortgage.
Any suggestions?
Thanks all.
Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!
0
Comments
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Hi,
Would the brother be prepared to actually be party to the mortgage?
Cheers
Andy0 -
Some lenders will not take the loan payments into account if he has less than six months to run on it. You need to look at an affordability based lender rather than one that works on income multiples alone.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
AndrewSmith wrote:Hi,
Would the brother be prepared to actually be party to the mortgage?
Cheers
Andy
Unfortunately not! Its a long story! I know it would make it much easier.Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0 -
It may still be possible though especially with that size of deposit.
Is he using a broker or doing it DIY?
Andy0 -
MortgageMamma wrote:Some lenders will not take the loan payments into account if he has less than six months to run on it. You need to look at an affordability based lender rather than one that works on income multiples alone.
Well the loan will finish in October this year, so I suppose it could disregarded.
So do you reckon it would be possible?
I just dont want him to keep making applicaitons and constantly getting rejected.
I'll make sure he using a reputable brokers like yourselves next time.Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0 -
AndrewSmith wrote:It may still be possible though especially with that size of deposit.
Is he using a broker or doing it DIY?
Andy
His was using a broker but I've told him to "sack" that guy!!!
If its possible, what sort of rate should he be looking at? The chepear product overall the better.Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0 -
He may have to take a longer term than 25 years, but he should be able to get this agreedI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Agree Herbiesjp
Should be possible but will need to be looked at carefully before submission.
A case of the old style 'pick up the phone and chat it through with the lenders' before submitting it. Those were the days :rotfl:
Andy0 -
I know plenty of lenders that would accept that, but he may well have to extend the term, unless he was going interest only. Your relative would be better speaking to a decent broker and getting an honest "this is how it is" opinion on the best way to do this. Just out of interest, is your relative a graduate/professional?I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
MortgageMamma wrote:I know plenty of lenders that would accept that, but he may well have to extend the term, unless he was going interest only. Your relative would be better speaking to a decent broker and getting an honest "this is how it is" opinion on the best way to do this. Just out of interest, is your relative a graduate/professional?
Doesnt really want to go interest only and also not a graduate either. Works as a Security Inspector.Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0
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