Mortgage....

jane_wood1984

Hi,

My sisters and I are looking at getting mortgage. We have a total annual income of £69k. How much mortgage could we take out?

Thanks in advance

Thrugelmir

How much deposit do you have saved up?

kingstreet

That would depend on many issues;-

- your deposit
- your credit commitments
- whether your incomes are made up of variable components
- dependent children
- how long you want the mortgage for

and a few others I can't remember.

If you work on three times joint income, net of any annual credit payments, you won't be far out.

jane_wood1984

Thanks for your replies. We have a combined deposit of £50k. Individual monthly outgoings of £150. No children. want a mortgage for around 15-25 years.

kingstreet

Sisters? How many applicants?

Sorry, Ive just noticed this.

£150 a month each or between you?

Set out each borrower's basic income and monthly commitments and I'll try to stop being a plank.

shortchanged_2

Is this for a BTL or for you to move into. Because if it's the latter be aware of the potential problems of buying with other people, even if they are your sisters.

Circumstances can change e.g a new boyfriend comes on the scene or someone needs to move for another reason and it can all get a bit messy if one or two want out.

originalmiscellany

Outgoings of £150 a month? Wow! You're a lucky lady.

CloudCuckooLand

I know this is not your question, but in case the thought has not occurred to you...you would be sensible to have a "get-out" agreement with your sisters.

i.e. a plan of how the remaining sisters will cope should 1 of you get a partner (or married, noting your other post) or a job somewhere else, and need their income "released" from this mortgage in order to apply for a mortgage elsewhere...and how any "buy-out" of the departing sister could take place.

If you borrow to the maximum that you can afford now, jointly, its pretty likely that the incomes of the remaining sisters (i.e. minus the departing one) will fail to afford a remortgage...which could mean having to sell at an inconvenient time, or a loss.

So, you need to consider how long would be fair notice, to give the others a chance to seek alternative funding, while also being fair to the departing sister, to avoid her falling out with the others because she's fallen in love with a new place/person.

And decide how the apportionment of the deposit/monthly payments is regulated, and recalculated in various selling/buy-out scenarios...

Have a trawl of the forum; there are some sad family disputes. Not all, but some, could have be lessened or avoided through better forethought and planning.