could we get a mortgage this large 52% LTV Approx

johnwey

Hello
Just wondering if there are any fiancial advisors out there who may know the answer.................

we have £145,000 cash deposit for a house
we would like to buy a house at £300,000 ( £155,000 mortgage )

I earn £10,500 self employed
partner earns £15,00 NOT self employed

Now question is , would a bank lend this amount with such a large deposit , but not huge earnings .

we could repay the mortgage no problem each month

thankyou in advance

silvercar

Don't know, but the next question will be how long have you been self-employed, how many years accounts?

johnwey

silvercar wrote: »

Don't know, but the next question will be how long have you been self-employed, how many years accounts?

4 years of accounts

BornAtTheRightTime

RBS offered over 5 times my income based on affordability for a 50%LTV. So you could try them.

I don't want to patronise but are you aware of the following? Affordability is based on the current, historically low, interest rates which give incredibly low monthly payments. Interest rates which WILL go up sooner or later, and although a 2% rise sounds tiny, it would give a DOUBLING of the interest payment each month.
The fact is, I don't believe I could afford it when that happens, but RBS doesn't care because with a large amount of equity they know that should I not keep up with the payments, they could force me to remortgage with someone else and recover the arrears from my equity.

Also don't forget the 3% stamp duty, ie £9,000, plus legal costs and moving.

neverdespairgirl

A £155k mortgage at 5% interest would be £916.46 (repayment). That's probably half your monthly take home pay between you? That's quite a committment to take on

poppysarah

johnwey wrote: »

Hello

we have £145,000 cash deposit for a house

Round here that's a pretty nice house.


Wouldn't you like a zero mortgage?

myhouse_2

Ditto on the interest rates. Can you afford to be paying interest rates at 3-6% higher than they are now? That's the kind of higher rates that might be expected in 2-3 years. When IRs go up, they tend to go up quickly (i.e 1% over 4 months). You may find that by waiting, that 300,000 property type is available for less in the near future, particularly over winter when the market is quiet.

johnwey

BornAtTheRightTime wrote: »

RBS offered over 5 times my income based on affordability for a 50%LTV. So you could try them.

I don't want to patronise but are you aware of the following? Affordability is based on the current, historically low, interest rates which give incredibly low monthly payments. Interest rates which WILL go up sooner or later, and although a 2% rise sounds tiny, it would give a DOUBLING of the interest payment each month.
The fact is, I don't believe I could afford it when that happens, but RBS doesn't care because with a large amount of equity they know that should I not keep up with the payments, they could force me to remortgage with someone else and recover the arrears from my equity.

Also don't forget the 3% stamp duty, ie £9,000, plus legal costs and moving.

thanks for reply . Yes I'm fully aware thanks mate

johnwey

neverdespairgirl wrote: »

A £155k mortgage at 5% interest would be £916.46 (repayment). That's probably half your monthly take home pay between you? That's quite a committment to take on

I can afford it

johnwey

poppysarah wrote: »

Round here that's a pretty nice house.


Wouldn't you like a zero mortgage?

You wouldnt get a 2 bed terrace arround here in the south west for £145,000

maninthestreet

johnwey wrote: »

I can afford it easy thanks . Being self employed I can work extra hours !!!!!

How many extra hours will you have to work, given that you currently only earn £18,000 p.a (gross?).