Comparison websites - am I being realistic?

xxedrushxx

Hi All

I'm just wondering how accurate some "mortage comparison" websites can be in terms of quotes? I was only asked to enter my current earnings, outgoings, adverse credit and type of mortgage situation (i am first time buyer)

For example, I am looking to get a 90% LTV mortage on £235k, so borrowing a total of £211.5k and if I go on one particular leading name comparison site, I am given a dozen quotes, albeit from 2 companies, C&G and Lloyds.

The cheapest fixed rate seems to be 6.19% for 2 years then 3.99%

My current financial circumstance are this
- £41k pa
- £3.5k bonus gauranteed
- No loans, HP or credit card bills
- 940+ credit rating
- no past bad credit
- working in multinational company for 7 years

The reason I ask this, is because I have seen allot of articles in regards to banks only offering 85% LTV these days and salary multipliers of 3.5 or 4x etc, which means in all fairness, I shouldnt be able to get what I'm after. I am literally basing my future plans on a comparison website.

I know I should contact a mortgage broker at first base, but again, I dont want to waste anyones time if I am already being unrealistic

Just a final note - If I am aiming too high then I will need to rent. The area I wish to stay in is quite expensive (London Suburb), so the £235k will only get me a decent 1bed flat, anything lower then I'll have to re-locate or rent

ryan86uk

Defo speak to your lender!

My financial situation is rather unique to average joe. If you were to look at my "basic pay" it would be 19K pa but if you look at my YTD pay its currently at 36K. I was offered a mortgage based on my YTD pay.

Wh05apk

xxedrushxx wrote: »

The reason I ask this, is because I have seen allot of articles in regards to banks only offering 85% LTV these days and salary multipliers of 3.5 or 4x etc, which means in all fairness, I shouldnt be able to get what I'm after. I am literally basing my future plans on a comparison website.

Once again do not beleive the gloom and doom you read in the press, 90% mortgages are available, albeit the rates are high (although if you look historically they are not excessive)

C&G will take bonuses into account, although you are right on the limit here.

getmore4less

if the comparison site throws up something just go to the lender and have a check

http://www.cheltglos.co.uk/mortgages/remortgage/cgtrackers/2-year/2yr-ltv90-fee3c.html

http://affordabilitycalculator.cheltglos.co.uk/consumer_calc.aspx
came up with £212k when I threw in some numbers like yours.

herbiesjp

As stated above the mortgage is possible at that level (just).

However, you need to take into account affordability now, and in the future, so you need to look at what the mortgage would be based not only on the current follow on rate, but also on what rates might be in the future.

Whilst the mortgage may be possible, you do not want to create financial hardship for your yourself, so look at the figures carefully and discuss your options with a broker.