help me get a mortgage

blinko

help me get a mortgage

hi all here is the siutation

i bought flat for 128000 and offer accepted (128*0.99 = 126.72) assuming it did have the 1% stamp included
i have 15000 deposit

there is no stamp duty as this road is 150000 threshold for some reason !!!

anyway

that leaves me with just the solicitors fees to pay and mortgage arrangement etc which i reckon might cost about 2k max as i have a quote for about £700 form conveyencing warehouse thus

i need 113000 but i only earn 16,000 can anyone help me which is about 7 times my earnings

but no one seems willing to lend me more than 5 times my earnings

can anyone help thanks

vsumouse

marry a rich partner!

oher than that, have you checked that can you afford repayments and afford to live?

Cazza

I'm sorry if this isn't what you wanted to hear, but I think you may just be pushing things a little too far. Based on your salary, I'm guessing your take home pay is about £1000 per month. Have you looked at how much this mortgage will cost you? Even on an Interest only basis it'll be around £500 per month, you'll have council tax and food and utility bills on top of this - what happens if the boiler packs up and you need to replace it?

Banks want to lend you money, if they don't, they won't have a business! They also want you to be able to repay the money they lent you and they usually pretty good at working out what will be too much for most people, there's a reason why the usually stick at about 4x your income. I'm sorry if this isn't what you wanted to hear!

blinko

i know it will be tough and your figures are about right but i know i can make it work on interest only

im thinking can do buy to let i have 10% deposit and then i can just rent it to myself that way at least i can get a better deal what do you guys think.

cause no one wants to seem to lend me more than 5 times my invcome

AndrewSmith

OK reality check.

You cannot buy the property and rent it to yourself, no lender would ever entertain that.

You will not get 7x income at £16,000 per year using income multiples, affordability or interest only. It is irellivent whether you feel you can 'make it work' if you do not fit the lender's criteria.

In an environment of rising interest rates it is financial suicide to be looking to borrow at this level. OK you may be able to just about scrape through on the payments now on a relatively low fixed rate but what happens 2,3,4 years down the line if rates have increased?

I am not trying to put a damper on anything or trying to be unduly pesamistic. I am merely being realistic. It would be patronising of me to tell you that it was possible to do this as personally I think it is not.

Not what you want to hear but you need to know before you begin committing money to solicitors etc or even applying to lenders and having credit searches carried out.

Andy

blinko

thanks i know it doenst look good but i have managed to get a mortgage with my estate agents i have uploaded all the details here

http://download.yousendit.com/993898C256BD57C7

but im not sure if this is a good deal, some of the charges seem quite alot and

i have my solcitior at £600 with conveyancing warehouse
and there is no stamp duty on the property as the threshold for that street is 150k

i have 15k deposit and the property costs 128k

do you think these figures are ok im sure im not borrowing 98% of my costs !!! thank you

pioneer

If you really are going for fiscal suicide, at least get rid of the £2816.00 98% lending fee. After all you do have 15K.

Fairdo_2

Have to agree with your other posters here and say that I would say that is far too much borrowing based on your income.

It is a 3 year deal, so it gives you some breathing space if you honestly think you could scrape by on those payments with all other living costs. However, bear in mind what you potential income increases could realistically be.

You would need to be confident that you will have increased your income dramatically in the meantime, as rates could potentially carry on increasing in that time.

The Mortgage is not portable in that 3 years, so you are stuck in that place in that time, or you are subject to a penalty if you move or redeem your mortgage. Therefore, if you start struggling you may still have to pay a penalty that could cost you more than any equity you may get in return. Bearing in mind what you would pay up front with Arrangement Fee and Higher Lending Charge, you will effectively have had an up front penalty aswell.

Also, major consideration for you has to be the fact that this is stamp duty exempt in this area. This usually means that the area is subject to concession because it is deemed to be in an area of the least desireability locally, which is bound to have an effect on future marketability. Therefore, if the housing market does have a wobble, yours could potentially be amongst the first to suffer. I am not looking to belittle the place you have offered on, but it has to be a major consideration.

Cazza

Sorry blinko, I'm with AndrewSmith on this one. The reason you can borrow the money on the Buy to Let basis is because the lender bases the amount you can borrow on the rental income rather than your income. The reason they don't want to lend you the money is because they don't think you can pay it back and live too!

If a lender said you could borrow £250,000 it might be great on paper but you'll be on beans on toast for the rest of the month. Have a quick search on the forums - I've seen at least two threads from people who have had their houses repossessed TODAY. You have said my figures are correct, but that was on an interest only mortgage, you will need to pay the mortgage back at some stage - a repayment mortgage will cost you about £625 to £650 per month.

I know it's difficult - I've been involved in the mortgage business for just over 7 years now but only managed to buy my own place in August 2005 - and I couldn't have done it on my own, it's a joint mortgage with my boyfriend. I'm sorry!

blinko

thanks all ok here my understanding if there are no exit fees after 3 years
the fee is only £200 and thats it i currently take 1052 a month and that would leave me with 1052 - 550 = 502

thats to pay the council tax to which i get a discount cos im living on my own £90 per month

food - £100 per month
travel - £100 per month
bills - £100 per month

that leaves me with £112 spare

Conrad

Blinko, Ill make a bet with you, remember this:

YOU WILL HAVE NO SPARE CASH, IN FACT YOU WILL BE LIVING WELL BEYOND YOUR MEANS.

Your budgeting is way out - what will you eat for lunch, waht about shoe polish, sun cream, wrapping paper, batteries, car tyres, breakdowns 9there will be many), toothbrush, zit cream, hair gunk, weekends away, your mums anniversary, cling film, cleaning fluids, light bulbs, pens, car wash, new iron, dvds, swimming, magazines, hobbies, dentistry, parking tickets.

With polite respect you sound like all those on the debt boards - they to thought they could square the circle.