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Getting a large mortgage

2

Comments

  • roswell
    roswell Posts: 2,447 Forumite
    Thats some mortgage to income and really I think its a case of being on a double edged sword,

    Pro - if the economy and house prices rise you stand to win ...

    Con - if there is a slow down in economy or house prices your effectively making financial suicide.

    With debts of that size I would look at clearing them before considering a mortgage of 6 times joint income and in all honesty I would go more than 4 x joint but thats just me.
    If it doesnt pay rent sell it.
    Mortgage - £2,000
    Updated - November 2012
  • ventrood
    ventrood Posts: 16 Forumite
    We are working on clearing the dept asap however getting frustrated with renting and paying someone £500 a month I mite as well burn it. My P60 this year will show my bonus as £9000 does that mean I wont have to tell anyone that its only £7500 this year. Also my dad has said he can guarantee me as much overtime as I need to get the mortgage I need. However I have heard that this isn't worth the paper its written on when the letter is written by my father is this correct?
  • ventrood
    ventrood Posts: 16 Forumite
    ListT186 how does say £5000 overtime add into your calculation. Can anyone sudjest any lenders that are best for these types of mortgages. I can find high lenders on the internet but I dont know who to trust.
  • olly300
    olly300 Posts: 14,738 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Your partner and you would need to use a mortgage broker to see if what you want is viable first, and you can direct questions at them. Then go house hunting if it works out you can afford something with all the fees.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • LisaT186
    LisaT186 Posts: 225 Forumite
    Part of the Furniture Combo Breaker
    ventrood wrote:
    ListT186 how does say £5000 overtime add into your calculation. Can anyone sudjest any lenders that are best for these types of mortgages. I can find high lenders on the internet but I dont know who to trust.

    Any overtime would be classed as regular income and 50% (£2500) added, but you would have to show a track record. Therefore if you can do overtime, make sure you are doing enough over the next three months to stack up to the equivalent of £5000 per year for it to be included.

    Hey with the extra, you can pay a little more off the credit cards ;)
  • fivemice
    fivemice Posts: 251 Forumite
    paying someone £500 a month I mite as well burn it

    You will probably be paying at least that much in interest, if not more.
  • Rick62
    Rick62 Posts: 989 Forumite
    I must have this wrong. You want a £250k mortgage, which at just 6% would be £1250/month (interest only) plus other bills, but are currently paying just £500/month rent, thats £750 less and you still have £31,500 of debts?

    And you say you can afford the mortgage? Whats changed? You should get some of your debts sorted out first before adding another £250,000 of debt.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ventrood
    ventrood Posts: 16 Forumite
    Whats changed is that instead of adding to our debt we are now reducing them. We are doing this slower than we could be but whilst doing this we are still enjoing a good lifestyle. We would swap this good lifestyle for a large mortgage if someone will allow us too.
  • if your rent is only 500 and you think you can afford a mortgage of 1250 plus a month then why dont you save the £750 a month that you should have surplus and use it to save a deposit or clear some debt. You could clear your smallest debt in 5 or 6 months at that rate, and to be honest there is no way I woud buy anywhere with a 100% mortgage at the moment as with rising interest rates the best you can hope for is a static market. Net result is that you pay 1250 in interest to a lender rather than 500 to your landlord. In a years time if the market stands still (and it may well fall) you will have paid 15K in interest instad of 6K in rent. Tht 9K saved would put a big hole in your debt
  • BTman
    BTman Posts: 354 Forumite
    Uniform Washer
    ventrood wrote:
    Whats changed is that instead of adding to our debt we are now reducing them.


    How can BORROWING A QUARTER OF A MILLION be reducing your debt??

    You've lost me...:confused:
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