3 way Mortgate advice needed??

LadyJ81

I am looking at getting a mortage with my partner and sister.

My partner earns in the region of £30,000, my sister earns £20,000 and I earn £18,000. We have around £20,000 as a deposit.

Can anyone tell me how much we can expect to be able to borrow and which lenders offer this deal?

Ta muchley

getmore4less

What is the exit plan/agreeement?

Charterhouse

Sounds kinky

LadyJ81

This isn't something I've heard of before?

happybroker

LadyJ81 wrote: »

I am looking at getting a mortage with my partner and sister.

My partner earns in the region of £30,000, my sister earns £20,000 and I earn £18,000. We have around £20,000 as a deposit.

Can anyone tell me how much we can expect to be able to borrow and which lenders offer this deal?

Ta muchley

To be fair, the deposit is limiting you to a purchase price of £200k at best anyway. Lots of lenders will look at this for you but again, the deposit limits the number of deals out there if you want to borrow 90% of the purchase price.

LadyJ81

happybroker wrote: »

To be fair, the deposit is limiting you to a purchase price of £200k at best anyway. Lots of lenders will look at this for you but again, the deposit limits the number of deals out there if you want to borrow 90% of the purchase price.

We are looking at buying a 5 bedroom property so we will need to raise more than that!

What are the lending rates against each salary?? I know that when two wages are involved its 2.5 times the amount, but how is it calculted for 3 people?

beecher2

LadyJ81 wrote: »

We are looking at buying a 5 bedroom property so we will need to raise more than that!

What are the lending rates against each salary?? I know that when two wages are involved its 2.5 times the amount, but how is it calculted for 3 people?

You won't get higher than a 90% LTV, so it'll be impossible to get a mortgage for more than £180,000 with a £20,000 deposit. You need to keep saving for your deposit to have a chance of more.

Charterhouse

LadyJ81 wrote: »

We are looking at buying a 5 bedroom property so we will need to raise more than that!

What are the lending rates against each salary?? I know that when two wages are involved its 2.5 times the amount, but how is it calculted for 3 people?

Well it's usually 3.5x single salary, 2.5x joint salary, so they aren't going to give you much benefit for the 3rd salary at all. I don't think your sister being involved really helps you. As someone else has noted, the size of your deposit will be the likely limiting factor.

somethingcorporate

LadyJ81 wrote: »

We are looking at buying a 5 bedroom property so we will need to raise more than that!

What are the lending rates against each salary?? I know that when two wages are involved its 2.5 times the amount, but how is it calculted for 3 people?

It's not always that simple, but certain lenders will lend 3-4 times joint incomes. I expect with 3 this multiplier becomes less. As already been stated your deposit is the limiting factor.

How much are you looking to borrow? and will you be able to (jointly) afford the repayments on such a big mortgage? I am suggesting that the repayments on a large mortgage would be a significant % of your take home pay.

happybroker

LadyJ81 wrote: »

We are looking at buying a 5 bedroom property so we will need to raise more than that!

What are the lending rates against each salary?? I know that when two wages are involved its 2.5 times the amount, but how is it calculted for 3 people?

It varys from lender to lender unfortunately, sorry...I would love to be more positive.

With 2 wages it can be as much as 5 times salary or more as many lenders will look at affordability. This will be reduced if you only put in 10% as a deposit.

Potentially you would be able to raise over £300k (subject to other commitments and affordability etc). A £300k mortgage would require a deposit of around £35k. You would then need 3% of the purchase price (£10k!) for stamp duty and probably another £2k min for legal costs etc.

If you are looking to borrow to maximum potential you will need to be able to put together over £50k in cash in my opinion.

somethingcorporate

happybroker wrote: »

It varys from lender to lender unfortunately, sorry...I would love to be more positive.

With 2 wages it can be as much as 5 times salary or more as many lenders will look at affordability. This will be reduced if you only put in 10% as a deposit.

Potentially you would be able to raise over £300k (subject to other commitments and affordability etc). A £300k mortgage would require a deposit of around £35k. You would then need 3% of the purchase price (£10k!) for stamp duty and probably another £2k min for legal costs etc.

If you are looking to borrow to maximum potential you will need to be able to put together over £50k in cash in my opinion.

And the interest alone would be £1,500 a month (assuming 6% at 90% LTV). That's quite a substantial chunk before you make a touch on the capital!