Can I (we) get a mortgage?

Wantaflat

I'm 28 years old and would like to buy ideally a 2-bed flat in London(!).
I've looked at properties around and it looks like I may have to settle for a 1-bed place, unless I go for a council flat which I don't want.

I'm on £36K pa at the moment, and expect to be on £40K gross by the time I'm ready to buy. I'm saving 1K a month and am aiming to have 25K saved up for for a mortgage in the next 15 months.

The question is: can I get a mortgage with this salary and deposit combination? a 90% LTV mortgage would be £180K on a £200K property, but even if I had 4x annual income mortgage offer, I would only get 160K - how does the income multiple/LTV work exactly?

Also, would lenders take bonuses into account? I get about 10K bonus a year which could help? Does anyone know which mortgage lenders are willing to do 4x borrower's annual income? My bank, HSBC, only seems to do 3,5x... I don't any loan repayments, credit score is fine, never missed bill payments.

My boyfriend's financial situation is a bit different; as a PhD student his income is less stable and is probably more at 15K pa - would any lender take this into account if we went for a joint mortgage? His involvement could mean a £40K deposit instead of my 25K, and we could stretch to a 2-bedder but I'm not sure how lenders would receive him considering his employment status.

Thanks to anyone who has any insight on this!

holly_hobby

Have a look at Nationwide affordability calc - I have just quickly put the figs for mge calc in (i.e 40k salary & 10K dep bous & no dependants/commitments) - and it gives an anticipate fig more than your requirements (subject to status checks and the above being accurate).

They have a UK network of branches so you should have direct access for an appointment with them.

Here's the link for you - https://portal.nationet.com/nationwide/affordability/(imrgph55zuarak3m23r4olqt)/Results.aspx

Hope this helps

Holly

Wh05apk

Assuming no other commitments, and good credit, you could get close to 5x your income with other lenders.

zenmaster

My son is a PhD student and he and his girlfriend (earning considerably less than you) have recently got a 160k mortgage but it was not straightforward.

They had a offer in principle based on him earning 15k but when he accepted the position it was only 14.6k. When told the lender this the offer was immediately withdrawn and they had to reapply.

On reapplication they were declined due to 2 factors -

1. The word "Student"
2. His income is not a salary but a stipend

Eventually they applied to another lender and put "Research Assistant" for his occupation and did not mention the word stipend at all.

Wh05apk

zenmaster wrote: »

My son is a PhD student and he and his girlfriend (earning considerably less than you) have recently got a 160k mortgage but it was not straightforward.

They had a offer in principle based on him earning 15k but when he accepted the position it was only 14.6k. When told the lender this the offer was immediately withdrawn and they had to reapply.


On reapplication they were declined due to 2 factors -

1. The word "Student"
2. His income is not a salary but a stipend

Eventually they applied to another lender and put "Research Assistant" for his occupation and did not mention the word stipend at all.

Committing fraud is not the best way to apply for a mortgage though.....................

zenmaster

Wh05apk wrote: »

Committing fraud is not the best way to apply for a mortgage though.....................

In what way is it fraudulent?

hcb42

zenmaster wrote: »

In what way is it fraudulent?

implying he is in a FT position, when he isnt?

Wantaflat

Thanks to everyone for their responses, it looks less impossible than I thought! Holly Hobby, I just took a look at the Nationwide calculation and it seems much more optimistic than what I'd anticipated which is great. Wh05apk, I thought most lenders do 3,5-4x annual income, how is one able to get 5x annual income (provided all else is in order)?

Does anyone know what interest rate is "good/reasonable" for a 90-85% mortgage if paying interest and capital?