Mortgage broker help!!!!

dannyb123_2

Hi Guys,

This is aimed at mort brokers on here, Conrad you sound very clued up!!

I have been dealing with a broker about getting a mortgage. The problem is she has said no way will i get on and i dont know where to go from here..... (No credit checks where done but spoke to some lenders)

Background info

I own an house which my grandparents and brother live in (I dont).

£68k owing @ £442 per month House value £125k

Made an offer on a house £133000 accepted (A real bargain, 3 bed detached stone)

Got 10% deposit (Maybe strech to 15%).

Got a loan with Santander £216 per month ( Instead of car finance)

Both me and wife NO late payments and she has no debt.


Income

Me employed full time £25000 (12.5k basic & 12.5 Com)
Wife full time £12740.

I was told this would not pass affordabilty with just us ????

So our parents offered to buy it with us or guarantor.

There combined income = £80k
Monthly outgoings = £ 3k

BUt still told this would not pass affordability.

Myself and wife have been at current address 10 months previous 3 yrs 8 mths. Always on electrol roll.

Parents 9 yrs 8 mths current address.


We really need this house, advise much apprecaited

camper_1982

Are they just basing it on your 12500 guaranteed income and not commision?
Maybe its because you already have the other house.

dannyb123_2

camper_1982 wrote: »

Are they just basing it on your 12500 guaranteed income and not commision?
Maybe its because you already have the other house.

Broker told me the other house was not an issue apart from the monthly cost that would come off affordability.

I need a mortgage for £119 700, surely this is not impossible ??
Most houses are a lot more than this

bap98189

If they are excluding commision you have income of £2103. Take off (very roughly) 20% for tax and you have £1682 per month coming in. But you have committed monthly outgoings of £658 so you have effectively income of £1025 per month.

Interest rates are low at the moment but not going to stay that way for long. Let's say you get a mortgage at 4%, on £120k, that will work out at about £640 a month. You would be spending over 60% of your available income on the mortgage.

Even if they included all of your commission in the calculation, you are still spending 35% of your income on the mortgage.

Dan_1976

Think about it like this. As a lender on your salary with 50% of your commission would you want to have a borrower owing £170k?

Its 2010!

If your family pay rent you may be able to use it as income, the issue with this though is it is a regulated mortgage due to it being family.

I think your stuck!

dannyb123_2

Any more thoughts ???

Conrad

Bare with me I'm reading it now..........

dannyb123_2

Okay thanks... let me know if you need any more info Conrad

Conrad

From the fairly basic info here, I would probably suggest looking at one of your parents electing to arrange a new mortgage on an 85% basis. TBH, it's too in depth to go into here, but a decent broker will know what to do.

Conrad

Also what about raisning some more capital through remortgaging that existing one as a dependants buy to let? Take great care - the broker must think carefuly through every tiny detail, from insurance implications to your current proof of address.

dannyb123_2

Conrad wrote: »

From the fairly basic info here, I would probably suggest looking at one of your parents electing to arrange a new mortgage on an 85% basis. TBH, it's too in depth to go into here, but a decent broker will know what to do.

They have a res mortgage 3 yrs remaining, endow, 80k owing prop value 280k in 2010 values.

I just feel lost spoke to this broker, who just could nt seem to work it out on affordabilty.

Parents are self employed, have been 20yrs with all accounts to prove.

We really need this house or its going to mean renting