Another 'have I got a mortgage chance'...

Meeper

I appreciate your feedback, but feel free to comment when you have some experience in the matter.

Havign run the figures through Abbey's affordability calculator for a rough guide, they would lend £160,000 to a low-scoring applicant and £197k to a medium-scoring applicant based on income on £30k + £10k. So, my figures were originally pretty accurate as I was erring on the cautious side.

Feel free to get some qualifications and match my 10+ years in the industry before casting aspersions on the quality of my words.

The OP said "can I get one", not "how much would you recommend I should get one for". The answer to "can I get one" is Yes, up to about £200k at the absolute outside. How much should you get one for? I have no idea. That will depend on a detailed breakdown of your monthly affordability, and so on.

kingstreet

Suarez wrote: »

130k maximum.

Without establishing how much the OP would feel comfortable paying for the mortgage at this stage, it's difficult to deliver an accurate figure as to how much someone should set as their maximum purchase price.

At this point, all we can do is provide a broad-brush overall picture and in doing so we should not be denigrated for giving the full picture. I often point out that both Halifax and Abbey will lend upto 5x income for a high credit scoring applicant and will continue to do so, because that is information which is quickly and easily available to anyone visiting the Halifax and Abbey websites.

In providing client-focused advice I routinely analyse the applicants' budget and affordability based on different borrowing figures and different (higher) mortgage rates. I try to ensure the applicant is fully conversant with the responsibilities of home ownership and how to deal with the problems which may manifest themselves along the way.

At no point on here have I ever seen an adviser suggest someone should go out and spend every available penny of their borrowing power, nor should someone being told what that figure is, be seen as such a suggestion.

Suarez

Meeper wrote: »

Havign run the figures through Abbey's affordability calculator for a rough guide, they would lend £160,000 to a low-scoring applicant and £197k to a medium-scoring applicant based on income on £30k + £10k. So, my figures were originally pretty accurate as I was erring on the cautious side.

£197,000 is 5 times their joint income. Are you on crack? And that's for a medium scoring applicant? :rotfl:

mp80

I'm with Suarez here, why on earth would you even mention the potential borrowing up to 5 times your income with the market and economic outlook the way it is?

If the main dependant loses work then they will be up !!!! creek almost immediately as that's at LEAST 1100 quid a month before bills, assuming they have no savings (which on face value of this post they won't after the deposit) and with a history of bad credit??

I would definitely look at keeping back 6 months salary from the deposit, get the rest in on the house then look at the 3-3.5x combined salary range for mortgages. You'll get a better interest rate, you'll have less worries and be able to enjoy your lives more!

mp80

kingstreet wrote: »

At no point on here have I ever seen an adviser suggest someone should go out and spend every available penny of their borrowing power, nor should someone being told what that figure is, be seen as such a suggestion.

A good quality adviser shouldn't even hint at it, which is what has happened here.

mp80

Hello123 wrote: »

DOH! My OH earns £30k & I earn £10k - this will go up to £15k in January.

Thanks

I am not being funny here and I am only basing on what I read on other forums which you have posted, but you stated the day before you posted this you started on a job the week before where you have no guarantee of salary as you are working as 'self employed' for work experience.

Unless this has changed or I have grossly misinterpreted the situation, then mortgage companies possibly won't touch you as an earner as you have no history of accounts or income - being self employed you would have to fill in returns each year for tax purposes and normally lenders insist on 2 years returns before they will consider you. Even if you were on PAYE as a permanent employee they would probably take the same view as you normally need 3 months payslips at a minimum and you have no employment history (again an assumption as you state you are a recent graduate and I'm assuming again you and your partner are quite young?)

My advice is to not buy anything for a while, get some work experience and a regular income coming in. Save the money you have and keep adding to it. There's no need to rush in! See the world, have some fun! A house purchase is not something to be taken lightly!

Meeper

Well, there we go. Excellent advice by the laypeople once again with no professional experience to back up anything they say.

The OP wanted to know what was possible. It IS possible get obtain a mortgage of 5x income. Whether that is appropriate for THIS individual is not able to be ascertained from the information given. It would require a proper budget assessment and affordability calculation. It's not my fault that they are able to borrow 5x income, I was merely pointing out that the possibilities were out there. Is it appropriate for these people? I don't know. Neither do any of you.

mp80

"Professional experience" - is that the same type that the people who run the banks and the EU have?

Do we really need years of exposure to finance to know 5x salary for someone who has no guaranteed income, no working history and a partner with a history of bad credit is a bad idea??

Your posts come across as nothing more than a sales pitch.

kingstreet

So can someone tell me how much these people should be able to borrow? 2x?, 3x?, 4x?

Perhaps they can't be trusted to have a mortgage at all with the economic outlook the way it is?

I know. Let's not tell them what might be available, then they might never find out...

Meeper

Where do you get the no working history from, with 3 years worth of payslips for hubby? No guaranteed income? Who has!? History of bad credit - sure. A while ago and they have a £30k deposit saved since then.

You don't know these people, neither do I. Why are you so keen to write them off?