FTB - Large deposit, low salary

Seff

Hi guys,

I'm in a lucky situation to have access to a large deposit - around £185k but am on a relatively low salary £25k with a £2k bonus that isn't guaranteed but in 3 years I have always got.

My question is, will the large deposit help me get a larger mortgage? I'd be looking for property worth £290-310 with the aim of obvsiously offering less. Is there anyway I could get 4.5x my salary inc bonus given the large deposit?

I'm definitely planning on speaking to a broker at some point but I'd like to have a figure in mind now so I can see what my money can get me.

Also is there any liklihood that I'd be able to get a better rate than the standard on most mortgage lenders websites?

Thanks in advance!

Luke

GMS

The large deposit will helpget a good rate, whether or not you get what you want is dependent upon your individual circumstances.

4.5 x salary may be optimistic, but may be possible subject to criteria.

As for a better rate than standard, not sure why you would think this. Rates are as they are and generally increase the higher the Loan to Value so at a low LTV you should be at the better rates of the lender.

Speak to a 'Whole of Market' broker who could help you.

herbiesjp

You could potentially get this agreed.

You would need to make sure however that the mortgage payments were totally affordable, based on the final figures you are looking at.

Things that could reduce the mortgage amount - debts, low credit score, dependents.

Seff

herbiesjp wrote: »

You could potentially get this agreed.

You would need to make sure however that the mortgage payments were totally affordable, based on the final figures you are looking at.

Things that could reduce the mortgage amount - debts, low credit score, dependents.

Thanks for the above replies.

I don't have any outstanding debts but possibly a low credit score (never had a credit card and got warning letters from collection agencies for missed mobile phone payments whilst I was travelling abroad but these were then paid immediately) and no dependents.

I'm sure the payments will be fine considering I have friends who are looking for a room to rent which should at least cover half the mortgage payment each month.

herbiesjp

The missed payments and collection agency scenario might cause problems.

Better to discuss to discuss with a good broker, and get an agreement in principle to see if it gets agreed.

You may also want to get a copy of your credit file also.