Oh my god, we've been turned down!

opinions4u

Im sorry but I do not see how allowing someone a £900 a month mortgage on an income of £2550 a month is irresponsible??

If the payments doubled, you would struggle.

It sounds to me like there will be a lender out there who will probably be able to get mighty close to doing what you want them to do. Are you sure your broker is genuinely "whole of market"? Or does he deal with a panel of lenders?

Try to get things in perspective though:

1) You have a relatively small deposit in today's market - for many lenders that is the absolute minimum deposit that they would accept.

2) Interest rates will, at some point in time, rise. Unless you've got a low price fixed rate for the entire term of the mortgage, a responsible lender has to take future affordability in to account alongside today's affordability.

3) By my calculations, excluding overtime you want to borrow 4 times income. You haven't stated whether or not this is joint income, but historically this is still a pretty high income multiple.

4) A mortgage is not a right. N&P have said they'll lend to you. Just not the amount that you want.

MissMessy_2

Now I have stopped panicking, I can completely understand what everyone is saying. I have no problem with N&P s decision... it is the fact that with dependants playing such a factor why did they not say on the inital phone interview to see if we qualified " yes we will lend upto 4.3x wages, however how many are in your household as this will dramtically reduce what we will lend.."

For example Nationwide will lend upto 186k and thats allowing for 2 children.

I understand that although we know what we can afford that doesnt count for the lender, we have coped paying a £1450 mortgage 4 years ago, never missed a payment, never late etc so yes WE know we could cope with a big increase, but in their eyes we couldnt and thats what counts.


The mortgage advisor stated that nearly every person coming to him at the moment is looking between 4-4.5x salary, so were hardly in the minority.

We are going to a different broker now and will seek further advice but as I said it looks like its between YBS and Post Office, but post above sounds like maybe Post Office wont be a good idea

GMS

Check affordability calculators yourself first before applying directly.

Put all the information in to the calculator and get the results. That way you will know before hand.

MissMessy_2

I have done that and done their affordability calculator over the phone and all was well... I doubt I could have done anymore. However I now know that having dependants plays a far bigger part in the amount to be loaned than most mortgage calculators say and will bear this in mind

MissMessy_2

So can I just check, as a rule of thumb they taken into consideration whether you could afford to double your mortgage payments and if you cant then your are trying to borrow too much?

I guess it just feels weird as we have never encountered this in the last 10 years of buying and selling, but I guess it shows how times have changed!

moneysaymoneydo

£500 deducted because you have 2 kids what a neck, next time dont declare the kids

GMS

moneysaymoneydo wrote: »

£500 deducted because you have 2 kids what a neck, next time dont declare the kids

Why not go the whole hog and treble income too??

To not declare the kids would as with any false declaration be fraud.

Not a good idea

moneysaymoneydo

I may be wrong but im pretty sure you would have to show proof ie. wage slips so saying income is more wouldnt be a good idea but just thinking they dont ask for proof ie child benefit books of sproglets, just a thought! :cool:

GMS

Whether they ask or not is irrelevant. Lying on an application is fraud. My comment re income was a sarcastic one.

trevorsminted

MissMessy i know someone who did just that said no kids and actually have four who all reside with them and they got the mortgage they wanted, their theory was there were single couples getting a bigger mortgage but there expenditure could have been a lot higher for instance eating out, holidays etc whereas they lived quite modestly, fraud?? yep just like noone lies on their cv, good luck!