Is there a mortgage out there for us?

riverboat2001

Just got turned down for a mortgage by the Post Office, despite passing the credit check.
We have an appointment with a mortgage broker next week, But as i'm sure you can all imagine the sleepless nights between now and then
EA have just written to say seller wants to get things sorted within a month!

We both earn 37.5k and want to buy a property worth 237500.
Paul is 52 and i am 45
We have another mortgage on a second property with 48k oustanding.
This property will be sold within two years, and profit used to pay off the new mortgage (should clear about 250k profit)

We can afford about 1250 per month, so we were looking for an interest only mortgage and a 2 year fixed rate.


We have both scored 999 on the experian credit score
I have one loan that i defaulted on in 2004, but have been making payments on it without ever missing a payment.
We have not missed a payment on anything for the last six years.
We have no credit or store cards.


Is there a mortgage out there for us?

Senior_Paper_Monitor

Looks perfectly do-able provided you can present acceptable repayment vehicle (but not surprised the PO wouldn't play)

riverboat2001

My "repayment vehicle" would be the sale of the first property.

should have said we only have about 30k for a deposit

opinions4u

riverboat2001 wrote: »

EA have just written to say seller wants to get things sorted within a month!

Don't get bullied. Buyers aren't queuing up and even if you lose this house, there are others on the market.

We both earn 37.5k and want to buy a property worth 237500. Paul is 52 and i am 45

How much do you want to borrow? What official term do you want the mortgage over?

A 12 year term based on age may be appropriate, but there's a possible impact on affordability. Longer term beyond retirement age may involve more manual underwriting.

We have another mortgage on a second property with 48k oustanding.

Why can't this be sold now? It's another affordability inhibitor.

This property will be sold within two years, and profit used to pay off the new mortgage (should clear about 250k profit)

So the lender's only going to make two year's of profit out of you? This may put some off.

We can afford about 1250 per month, so we were looking for an interest only mortgage and a 2 year fixed rate.

Interest only may flag up the need to involve manual underwriting. Consider asking for repayment (higher cost though, especially if the term taken is short).

We have both scored 999 on the experian credit score

This may not sound polite, but so what?

is there a mortgage out there for us?

Possibly, although any broker would have to tread carefully to avoid placing it with the wrong lender.

I suspect Post Office looked at age, second property with debt, interest only etc and tried to find a way not to lend.

Senior_Paper_Monitor

Sale of the other property is not always acceptable to all lender, you will not get interest only above 75% LTV (not many left who will do 75% IO + balance C&I), ages make it tricky but not undoable - there probably is a way (in fact 2 or 3 ways I suspect). Your broker will take you through the options - once he/she has all the background info.

I suspect that the best answer lies in splitting the borrowing across the two properties.

riverboat2001

Yes we may lose this house, and find another one. But we have very specific needs and this met them perfectly.

Can't sell the first house yet as Mum is living in it (no rent - out of love) She is 67 and will be retiring sometime in the next two years (hence property being sold)

The mortgage company wouldn't know we plan to pay it off early.

Can't afford a repayment mortgage due to Hubby being 52 so thought only a 13 year mortgage would be possible.

The 999 meant a lot to us, as in the past we were so reckless.

riverboat2001

Senior_Paper_Monitor wrote: »

Sale of the other property is not always acceptable to all lender, you will not get interest only above 75% LTV (not may left who will do 75% IO + balance C&I), ages make it tricky but not undoable - there probably is a way (in fact 2 or 3 ways I suspect). Your broker will take you through the options - once he/she has all the background info.

I suspect that the best answer lies in splitting the borrowing across the two properties.

In your reply, i understand IO is interest only, but what is C&I ?
In November Santander were doing 85% IO and 15% repayment. But we didn't find any suitable houses at the time.

BadgerFace_2

C&I = Capital and Interest.

betmunch

I like SPM's idea to split the borrowing over the two properties.

I reckon this is doable with the right lenders involved. You should get yourself infront of a decent mortgage broker double quick if you want to hit that month deadline though!

Why wait a week? isnt there someone local you can visit? I would wager they are not that busy today!

riverboat2001

Couldn't get there before Christmas, and as it was Hubbys birthday yesterday we had already arranged to meet with kids and grandkids.
They didn't have any appointments today and obviously the first day back at work for anyone working normal hours is Wednesday.

Yes we are going to the local town.

I'm still going to be waiting a while for my papers to come back from the Post Office too.

hermanmunster_3

what has mum retiring got to do with selling second property - I reckon she could stay put! - maybe that will put lenders off