What Can I Borrow? Advice very welcome!

Lilacblue

Hi Folks

OK, this is probably a bit vague, but I wondered if anyone knows of a good mortgage company who may be able to offer me more than what First Direct have.

I am newly seperated, with potentially up to £60k capital. I could probably cash in isa's etc and get hold of a further £10k at a push. I need to be looking at houses of at least £140k in value, but hopefully more as that doesn't buy you much at all round here. I earn £20,000 working part-time but get childcare vouchers so my take home pay is about £1200 a month (with only a little extra childcare to pay). I get £640 month in tax credits and maintenance of £800 (this is a private arrangement...but the minimum csa amount would be £420). I have no loans or credit cards (thank god)

So, I spoke to my bank, first direct, and was HORRIFIED :eek: to discover that the most they would lend me was £50k! I really pushed and they came back with the princely sum of £55k. Whoopy-doo!

First direct won't take tax credits or maintenance properly into account. I know it's a long shot, but has anyone found somewhere that will, or do you have any advice? The crazy thing is that the lady on the phone went through the figures for a £80k loan and that was more affordable for me than what renting would cost round here. Then she came back and told me there was no way they'd lend me that amount as it would be irresponsible! I understand all that, but I still need somewhere to live!

Thanks to anyone who can help x

HC13

Hi

Most morgage providers have places on their sites which show how much approx you may be able to borrow. Some base this on your salary times x minus any outgoings (for example 4 times your salary), others have a different system.

They then look at your credit score and also other factors. Some have fees attached, some tie in periods which you will incur penalties with should you decide to leave them or indeed that product.

I hope that you find the right one for you soon.

VIGILANT22

If you consult a whole of market mortgage adviser, they will be aware of the income multiples of each lender and what benefits they do and do not consider...and how affordability is calculated.....

JA1000

Straight to a broker you nearly have a 50% deposit I think you'll find something. Don't waste time on web sites for banks etc, Barclays will show you 5 times salary but when it comes down to it with them it will be a lot lower so not worth the effort.

www.unbiased.co.uk

herbiesjp

Based on that income and that LTV, you should be able to find something.

In fact, you should be able to find some of the best rate on the market.

However you have seen that not all lenders work the same.

Definitely get in contact with a whole of market adviser and let them find out what which lenders would be happy with your income sources and who would offer you the best deals.