Advise for a simple situation!!

hpuse

You have no issues....Just chill :

170K/35K = 4.8 So go for that banker guy who offers 5x mortgage

ladyadventure wrote: »

Hello!!!

I have issue. Here are the basic facts:

I have £50,000 to put as a deposit on a home
I earn £35,000 p/a
I need to mortgage a property - Purchase price £220,000
I have two outstanding debts that total £575 pcm

I believe I am having issues with the amount I earn, I can find mortgage products offering 5x salary value. I need around 5.25x....

Anyone any advice?!?!!?!?

ladyadventure

Yeh, the £50,000 I have is in the house I own but will be available once sold, either way Im worried how much it will affect the LTV.

re the 4.8 - that is before they take off my debts that I already have. Including them I need a 5.25 x salary rate - ANYONE KNOW OF A COMPANY WHO CAN OFFER THIS?

It's a sad state when I have 22.7% deposit of the purchase price and will lose out for the sake of a few thousand!!!! Like I say, countrys gone mad.

Thrugelmir

flammable999 wrote: »

lol this is why I'm not a financial adviser but I like having a bash regardless

Neither am I. But have managed finance for a many years. The basic principles are the same and have never changed.

Thrugelmir

ladyadventure wrote: »

It's a sad state when I have 22.7% deposit of the purchase price and will lose out for the sake of a few thousand!!!! Like I say, countrys gone mad.

Went mad. Now we're back to sanity although with an almighty headache that a few asprin won't clear.

hpuse

When mortgaging, deposit amount is normally treated as a form of ready hard-cash, not sitting in any equitable form..

Or in other words, no bank will take your words of "50K profit" estimate from your current home sale and approve a loan. When will you sell your house (today, tomorrow, day after,) to make 50K.. Time to get a bit real ?

So when you say "countrys gone mad". I say Amen !

ladyadventure wrote: »

Yeh, the £50,000 I have is in the house I own but will be available once sold, either way Im worried how much it will affect the LTV.

re the 4.8 - that is before they take off my debts that I already have. Including them I need a 5.25 x salary rate - ANYONE KNOW OF A COMPANY WHO CAN OFFER THIS?

It's a sad state when I have 22.7% deposit of the purchase price and will lose out for the sake of a few thousand!!!! Like I say, countrys gone mad.

betmunch

Ummm, surely the bank WILL take your word on the £50K equity in the house and aprove the loan. If you then dont make the £50K from the sale then you wont be able to have the loan. But it will have been offered.

I'm concerned about the fact OP hasnt made any reference to fees payable to the Estate Agents, Solicitors, and Stamp Duty. Has all this been factored in and still leaves the £50K to put down the deposit?

Also, why is the OP so surprised she cant borrow enough. If you have a squeeky clean credit rating should you just be able to borrow whatever you want? If a bank is not comfortable lending you the money then they wont. I do not know of a lender that would be comforatable with the proposition at the top of the page.

OP, I am afraid you will simply have to lower your sights.

Cheers

beecher2

ladyadventure wrote: »

It's a sad state when I have 22.7% deposit of the purchase price and will lose out for the sake of a few thousand!!!! Like I say, countrys gone mad.

I personally think it would be madness to give you such a large loan on that income and with debts. Best bet is either to lower your sights, or to go over to Debt Free Wannabe for help in getting rid of your debt. You seem to think you're an ideal customer when in fact you look like a risky candidate.

hpuse

Yes bank will take the word and approve in principle. But when it comes to sanctioning it, assuming OP hasnt sold the house yet, where is the "real-money".

Its like first time buyer saying to a bank, "Sirs...I have an estimated worth of 40K sitting in my equity pot if FTSE index crosses 7000 in June 2010 could you sanction a mortgage in June 2010 please"

betmunch wrote: »

Ummm, surely the bank WILL take your word on the £50K equity in the house and aprove the loan. If you then dont make the £50K from the sale then you wont be able to have the loan. But it will have been offered.

I'm concerned about the fact OP hasnt made any reference to fees payable to the Estate Agents, Solicitors, and Stamp Duty. Has all this been factored in and still leaves the £50K to put down the deposit?

Also, why is the OP so surprised she cant borrow enough. If you have a squeeky clean credit rating should you just be able to borrow whatever you want? If a bank is not comfortable lending you the money then they wont. I do not know of a lender that would be comforatable with the proposition at the top of the page.

OP, I am afraid you will simply have to lower your sights.

Cheers

new_home_owner_3

Theyres no way you will get that amount you say you pay 525 pound a month for that you could get a mortgage for over 100,000 pounds.

Like the other person said you also need to sell your house and theres fees involved in that, usually they dont count debts that have less than 6 months so i take it the 525 pound a month is a long term debt which even if its 12 months in reality is over 6000 pound.

The only way your going to get that mortgage is if you have a partner, i doubt you would still get it on your own even if you had no debt, but the 525 pound a month defiantely will not let you get anywhere near it.

good luck