Mortgage - any chance?

5monkey

Hi
A quick question -

I have £25000 deposit money and I like a house which is £125000 so I need to borrow £100000... Im on £20500 a year and my boyfriend doesnt work at the moment. Do we have a chance for a mortgage?
Would a Joint application be better or Sole?
What do you think? Any thoughts?

Thank you

poppysarah

What's he contributing?

hcb42

if he was working FT you probably wont have a problem; 5 x earnings, no chance

Pupnik

For some reason most mortgage lenders will allow you to borrow considerably less money than they would if your boyfriend wasn't with you (even if the household income is no different). My boyfriend and I recently had this problem too because I am on a temporary contract so my pay is not included on the annual income calculations. Luckily for us we do not need to borrow nearly that amount as we are looking at much cheaper properties. I do not know what the general cost of housing is in your area but it might be worth lowering your price considerably, there are some very nice properties around for less than £100,000 if you look around and are not idealistic. I'm pretty sure the property we just put an offer in for yesterday would cost £50,000 more if it was in the slightly posher town 20 miles down the road. Some day you will be able to get a house like the one you have fallen for but it is good to be realistic and to not end up borrowing more than you can really afford to pay back. Remember that the higher your mortage is the more you pay back in interest in the end and it could end up basically adding tens of thousands of pounds onto the overall cost of the house.

5monkey

thank you, we are going to talk to a mortgage advisor tomorrow so we will see what they say. We are also going to view one house we like. Even if we are not going to get a mortgage yet we are excited...