FTB- How big a mortgage can i get ?

thequant

I want to be able to get the biggest mortgage as possible, I know that sounds both difficult and irresponsible in this climate, however the bottom rung is far away I need the biggest jump to reach it!

Heres my position, the properties in question I am looking at the bottom are aroound £200K, but if i find a doer upper or really scrape the bottom of the barrel I have seen places for £160k but that is the absolute min I have found.


My financial position is as follows.

Salary: £40K per year
Debt: £0
Savings: £10 K (saving at a rate of £1k per month)
Current Rent £900 PCM

Credit record: almost perfect 999 out 1000 on experian. However have a string of Defaults but these are in excess of 6 years old, some are not paid off due to disputes over unfair charges by DCA's. Will these affect me.

one other thing, I have equity in the company I work for, worth a min of £100k and am being paid a "Bonus" of £50k a year in equity.

However the equity comes with strict conditions in the shareholders agreement which prevents me from using the shares in anyway as security for loans or selling the shares on the open market. I'm guessing the answer is no, but is there any way I can use them to shore up my position ?

Im interested in

a) what is my current position, if i went out today given above, what sort of mortgage could i get ?

b) to reach my target of a min £160k, what sort of deposit do i need using the best LTV deal to get to this.

G_M

There are many mortgage calulators on the web - use google.

Here's the Fool one: how much can I borrow?

Here's the BBC one. how much will it cost?

thequant

sorry,Ignore thread, I meant to put this in the mortage wannabee forum.

G_M

thequant wrote: »

sorry,Ignore thread, I meant to put this in the mortage wannabee forum.

Then delete the post?

DVardysShadow

G_M wrote: »

Then delete the post?

Not sure you can delete the head post of a thread - it takes everything with it.

poppysarah

thequant wrote: »

one other thing, I have equity in the company I work for, worth a min of £100k and am being paid a "Bonus" of £50k a year in equity.

However the equity comes with strict conditions in the shareholders agreement which prevents me from using the shares in anyway as security for loans or selling the shares on the open market. I'm guessing the answer is no, but is there any way I can use them to shore up my position ?

So can you do with the shares?

halflost

thequant wrote: »

I want to be able to get the biggest mortgage as possible, I know that sounds both difficult and irresponsible in this climate, however the bottom rung is far away I need the biggest jump to reach it!

Heres my position, the properties in question I am looking at the bottom are aroound £200K, but if i find a doer upper or really scrape the bottom of the barrel I have seen places for £160k but that is the absolute min I have found.


My financial position is as follows.

Salary: £40K per year
Debt: £0
Savings: £10 K (saving at a rate of £1k per month)
Current Rent £900 PCM

Credit record: almost perfect 999 out 1000 on experian. However have a string of Defaults but these are in excess of 6 years old, some are not paid off due to disputes over unfair charges by DCA's. Will these affect me.

one other thing, I have equity in the company I work for, worth a min of £100k and am being paid a "Bonus" of £50k a year in equity.

However the equity comes with strict conditions in the shareholders agreement which prevents me from using the shares in anyway as security for loans or selling the shares on the open market. I'm guessing the answer is no, but is there any way I can use them to shore up my position ?

Im interested in

a) what is my current position, if i went out today given above, what sort of mortgage could i get ?

b) to reach my target of a min £160k, what sort of deposit do i need using the best LTV deal to get to this.

Regarding the shares? How is the value reached on these? I presume its private company and as part of your work, you get some addiitonal shares in the company with a nominal value of £1 or so?

Most agreements will say you cant use them as security, but until the company is sold, the equity is going to be worthless I think? i.e. until you realise the value of the company, the shares are an irrelevance as they arent even liquid assets (I presume that the other owners of the company may buy them - but do you have any indication what they might pay for them? Have they bought out someone previously?)

Henry_P_Chester

You salary is £40k so that is about £2460 per month net. Minus 900 PCM rent still leaves over £1500 PCM what are you spending all that on??

foreversummer

Henry_P_Chester wrote: »

You salary is £40k so that is about £2460 per month net. Minus 900 PCM rent still leaves over £1500 PCM what are you spending all that on??

OP says he/she's saving £1000 per month.

Cleaver

Henry_P_Chester wrote: »

You salary is £40k so that is about £2460 per month net. Minus 900 PCM rent still leaves over £1500 PCM what are you spending all that on??

As well as saving I'm going to have a wild guess at food, car, petrol, transport, bills, hobbies, holidays, clothes and all the other normal stuff that normal people have, and choose, to buy.

thequant

Cleaver wrote: »

As well as saving I'm going to have a wild guess at food, car, petrol, transport, bills, hobbies, holidays, clothes and all the other normal stuff that normal people have, and choose, to buy.

as cleaver says!

net wage is £2460 PCM

rent: £900 PCM

Savings £1000 PCM

the rest on the 3 F's,Food, Fags and Fanny