Why can i not get a mortgage???

sdmi123 · 4 April 2010 at 4:26PM

I have been privatley renting for 3 years. I have been paying £800 per month and never ever missed a payment. I have no det or bad credit.

Now when i go to the mortgage adviser they say they wont give me a penny more than £76,000. :mad: I cant belive this as the repayments for this are considerably less than my rent.

I belive i have worked out that at a rate of 3.9% on a mortgage of £150,000 over 30 years wold be £707 per month. close to £100 per month cheaper.

Why even though i have perfect history and no debt can i not get a mortgage!!! :mad::mad::mad:

please help. i was hoping there was a mortgae company that would look at your renting history and see you can afford more.

HappyMJ · 4 April 2010 at 4:30PM

You can get a mortgage...for £76k...

Why no more? Renting includes property maintenance and buildings insurance. Homeowners have to pay it. And...interest rates will rise unless of course you have found a 30 year fixed rate mortgage at 3.9% which I think unlikely.

_Andy_ · 4 April 2010 at 4:38PM

Why have you stated you can't get a mortgage when you can?

opinions4u · 4 April 2010 at 4:45PM

sdmi123 wrote: »

I have been privatley renting for 3 years. I have been paying £800 per month and never ever missed a payment. I have no det or bad credit.

Now when i go to the mortgage adviser they say they wont give me a penny more than £76,000. :mad: I cant belive this as the repayments for this are considerably less than my rent.

I belive i have worked out that at a rate of 3.9% on a mortgage of £150,000 over 30 years wold be £707 per month. close to £100 per month cheaper.

Why even though i have perfect history and no debt can i not get a mortgage!!! :mad::mad::mad:

please help. i was hoping there was a mortgae company that would look at your renting history and see you can afford more.

1) You can get a mortgage, just not for the amount of debt that you want to get yourself in to.

2) Just because payments are less than rent doesn't make home ownership cheaper than renting. You are now liable for all property related expenses.

3) If interest rates went up, how would you afford to meet the commitment? The most I've ever paid was 15.4%. £150k over 30 years at this rate would cost you just short of £2,000 a month. Can you afford this? Would your take home pay even cover it?

[Deleted User] · 4 April 2010 at 4:54PM

£76,000 would be a reasonable amount to lend on an income of £25,500.
Are you earning much more than this?

dwsjarcmcd · 4 April 2010 at 4:58PM

sdmi123 wrote: »

I belive i have worked out that at a rate of 3.9% on a mortgage of £150,000 over 30 years wold be £707 per month. close to £100 per month cheaper.

As has been mentioned, you are never likely to pay a rate of 3.9% over 30 years. The average has probably been nearer to 8 - 9% over the last 30 years.

One reason why renting history isn't taken into account (payment aside) is that it is easy to walk away from a rented property but not a mortgaged one!

surreybased · 4 April 2010 at 6:49PM

Hi,

I can see why you're frustrated however the real issue is the cost of houses for FTBs.Its not that long ago that £78k would be sufficient for a property. Not sure what the future brings but slowly people are realising that the high house prices are really impacting the younger generation. Guess you're in the SE where FTBs can't get a property unless Mum & Dad gift a signifcant % of the property price.

Your anger is understandable but maybe should be directed at the government who have allowed house prices to increase, due to lax credit regulations. The BTL LL are supported through tax advantages yet no real help for FTBs.

dianah · 4 April 2010 at 6:55PM

how much do you earn? our mortgage lender only gives up to 5 times of your yearly salary (or joint salary if it's a joint application) but some companies do only 3.5x or 4x... could it be this?

scottn · 4 April 2010 at 7:20PM

how much have you saved for a deposit?

de1amo · 5 April 2010 at 7:17AM

your bank is being prudent! something which has been in very short supply in the past few years--when this mess that has been wound up unwinds completely 78k might buy you something decent!!

Coveredinbees!!!! · 5 April 2010 at 7:59AM

why not go on rightmove and see what you can afford, it may not be what you really want but depending where you live you might be able to get something which will get your foot on the ladder. Our first place was pretty dire and the area wasn't great but we made the best we could of it.