Max Mortgage

DAbz

Hi

Currently looking to apply for mortgage and trying to decide best option.

Initially this was going to be joint but fianc!e has poor credit with CCJ - wages arrested for a year. Finalised two years ago. Neither of us has any debt right now. So firstly is it bad idea for joint mortgage? Will anyone accept us?

I'm on other end of the scale with excellent credit score and will have approx 40% deposit from sell of my flat. But really need a minimum 4.5 income multiple and been looking at Woolwich, Post Office and C&G.

Anyway I could add payments from fianc!e as additional income as I will be effectively charging her half the mortgage as rent.

Both on £29k Income looking for £130-140k mortgage on approx £230k house.

Thanks for any help

Henry_P_Chester

you won't get a joint mortgage. Better to go in your own but you might not be able to borrow that much. use the calculator here to get a rough idea how much you can borrow.

http://www.nationwide.co.uk/mortgages/calculators/overview.htm

you can't take future rental income (ie that of your partner) into consderation when applying.

_Andy_

DAbz wrote: »

Anyway I could add payments from fianc!e as additional income as I will be effectively charging her half the mortgage as rent.

No, you couldn't.

property.advert

5 times salary is easily available which would give you £145k. Woolwich offer this on their website and other brokers show 6 times salary.

With your deposit, you are a dead cert if your credit record is clear.

Here is Woolwich's affordability gumf http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1openplanwealth&value=15212

Affordability
The following disposable income figures are our minimum requirements in establishing affordability:

• Single applicant needs £551 per month.
• Two or more applicants need £715 per month.
• Each dependant requires an additional £121 per month

Eg based on these figures, a family of two adults and two children would need a disposable income of £957.


Monthly mortgage repayments:

• The monthly mortgage repayment should be met from the client’s actual or reasonably anticipated income. If the client intends to repay from sources other than income details need to be provided.
• The level of both the initial and subsequent repayments need to be affordable, ie consideration must also be given to the level of repayments at the end of any initial rate based on our Affordability Rate (currently 5.69%) applicable at the time of application.
• The monthly repayment must be calculated on the monthly capital and interest repayment unless the client has an acceptable repayment plan in place; then the interest-only payment can be used + the monthly cost of the plan. Full details of the repayment plan and monthly cost must be provided.

Basically you get £1828 a month net.
They say you need £551
That leaves you £1227

£140k at their Affordability Rate of 5.69% over 25 years as a repayment costs £876 a month.

Thus, you have £401 a month spare over and above their affordability requirements.

Kash1973

Hi
Just one piece of advice. Don't go to Woolwich. They have the worst service possible. I have been waiting si weeks for the underwriters' decision. Each document has been asked for and sent twice. They gave me an AIP in 2 days and debited my account 815 (I'm not kidding) for valuation and homebuyer's survey at the onset, but still haven't given a mortgage offer!
I am now too far down to pull out but am advising everybody now to thing twice.
Look at the reviewcenter website for other similar experiences at Woolwich.