45% deposit required!

Jvic28

Well the back story is on this thread: http://forums.moneysavingexpert.com/showthread.html?t=2228397 but basically my boyfriend wanted a mortgage so we though as first port of call we'd visit his bank.

We were thinking of making an offer for £45000 and have a 10% deposit so needed to borrow £40500 (Actually have near £6000 saved up but would use the left over for decorating). Not a lot I thought and given that my boyfriend has had an account with them for 20 odd years and has perfect credit, i didn't think it would be a problem. WRONG! We need a 45% deposit with Lloyds! Insane. Hopefully we'll have better luck with a broker. Any advice before we go looking tomorrow?

Thanks

benjo

Well alot is going to depend on income and outgoings = affordability.

If his income is low and his outgoings are high then they wont lend as much as someone who has a high income and low outgoings.

beecher2

If they're only willing to lend £25,000 or so, it must be down to affordability as benjo says. I see you hope to be debt free in 2016 - couldn't you rent til then?

Jvic28

The mortgage isn't for me, it's for my boyfriend using his income and expenditure only. It's a very cheap property which he hoped to buy either for us to live in eventually and to possibly rent out once we finally find a larger property to live in with the MIL. I currently have a mortgage and a home so won't be renting until 2016 thanks.

herbiesjp

What is his income?
What are his current debts?

Jvic28

His income is approx £18,000 with about £1500 on credit cards. £1400 on an interest free card and £100 on a lloyds credit card. Doesn't sound like much to me.

herbiesjp

Is the property habitable?

Or is it run down?

Sounds like a second opinion from a whole of market adviser would be in order.

Jvic28

Obviously we haven't had a survey done yet but it looks like it just needs decorating. Flooring and painting and a good clean up. It a repossession hence it being quite cheap.

beecher2

Jvic28 wrote: »

I currently have a mortgage and a home so won't be renting until 2016 thanks.

sorry - didn't mean to insult you. On your other thread you said you were looking for somewhere bigger than your present 1 bed flat to live in. I was looking at other options for you to live somewhere bigger, without taking even more debt on.

If you live together, wouldn't the bank look at the household income and take into consideration your child?

Are the bank just telling you what they'd loan to you in general, rather than for this particular property?

Jvic28

I wasn't insulted. There are a number of reasons for not including me on the mortgage and therefore not looking at our household income. I have a mortgage on this property which i'll be lucky isn't in -ive equity. i think i might just break even. selling this place is going to be a drawn out process. i'm on a dmp so my credit isn't great. i've been on maternity leave since june so by the time my outgoings have come out there's nothing left. the oh is much better off on his own on this one. hopefully the broker will be able to help.

Jvic28

oh and we didn't even get as far as talking about particular properties. they said they'd loan up to £56,000 if he cleared the credit cards but he would require a 45% deposit whatever the mortgage required.