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I rent for 1600 so why can't I get a mortagage!

MH18
MH18 Posts: 12 Forumite
in House buying, renting & selling
Hi All,

I've been renting for the past year for 1600 per month and yet my bank won't borrow me more than 120k????

A mortgage for the house I'm looking to buy wouldn't even be 1400 with repayment....?

My Natwest customer advisor was even agreeing with me but still couldn't increase the loan available to me....hence why I'm looking to buy with a friend (my other post on the forum....)

......are there any solutions or products for someone in my situation?

M
«13

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Why have you only been to Natwest?

    Go and see a Mortgage Advisor.

    Whats your salary?
  • MH18
    MH18 Posts: 12 Forumite
    I have and he said the same thing. I went to Natwest to try and explain my situation personally.

    My Salary is 29k, I've been renting for the past year and a half.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    So you've been to an independent mortgage advisor who has said he cannot get you anything above £120k?
  • zzzLazyDaisy
    zzzLazyDaisy Posts: 12,497 Forumite
    Part of the Furniture Combo Breaker
    How much deposit do you have?
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    zzzLazyDaisy wrote: »
    How much deposit do you have?

    £85k according to his other thread.
  • bris
    bris Posts: 10,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Because you don't earn enough. They are lending you 4 times your salary which is about right. The bank couldn't care less what private arrangement you have with your LL, they won't lend you what they believe you can't afford. It was irresponsible lending at 6 and 7 times peoples salary that got us into the mess we in now, they won't make that mistake again, at least not in the near future anyway.
  • HARSA
    HARSA Posts: 238 Forumite
    Do you have any other source of income? A salary of 29K should work out just over £1600 p/m which is what you currently pay in rent. Who pays your other bills or are you using your 85K deposit money to pay-off your monthly bills?
  • piccybabes
    piccybabes Posts: 110 Forumite
    Holiday Haggler
    MH18 wrote: »
    Hi All,

    I've been renting for the past year for 1600 per month and yet my bank won't borrow me more than 120k????


    M

    Did you ask to "borrow" the money from the bank or for the bank to "lend" you money.

    The bank won't "borrow" you the money.
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    What will £200k buy you? If you've been renting for only a year and a half how long has it taken you to save up that £85k? How long would it take to save another £85k?
  • katejo
    katejo Posts: 4,315 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    HARSA wrote: »
    Do you have any other source of income? A salary of 29K should work out just over £1600 p/m which is what you currently pay in rent. Who pays your other bills or are you using your 85K deposit money to pay-off your monthly bills?

    I thought exactly the same. My salary is almost exactly the same as yours and I absolutely could not pay a rent of £1600. My current mortgage is way below yours. During the time in which I have had my own place, my mortgage has never been more than 3x my income. Combined with other bills (not food) 50% of my income is taken up. I could not cope with a mortgage of 4x my income.
This discussion has been closed.
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