quick mortgage newbie question

mug51

Hi,


I'm looking to get a place this year, I earn £13k a year before tax and will be a single mortgage applicant. Based on a few 'how much can I earn' calculators form various banks, I can get as much as £64K to as low as £0.
I am looking for around a 60% LTV mortgage, and looking to borrow around 40-50k, but at some banks 40k is the most some will lend me (based on the calculator).
So the question is how do I know for sure how much they are definately able to lend me?

Also, do I look to get mortgage in place first and then look for a home or make an offer for a home then apply for mortgage?

much appreciated
James

SusieWoozy_2

Get yourself a broker and talk to them, they will be able to shop around for you. Get a decision in principle from a lender first and then go house hunting, that way the agent and the seller when u make the offer will know you are serious.

A decision in principle is where the mortgage company basically says they will offer you a certain amount of money based on your earnings, situation employment etc and a very soft credit check.

Once you have found the property you go back to the mortgage company and say you've found something and then thats when they do the proper offer. They do further checks on you and the property so just because you may get a decision in principle doesn't mean you will definately get a firm offer i'm afraid!

Hope that helps

ACG

Best to get an agreement in principle first, there is no point setting you heart on something only to find out you cant get it.

Some lenders wont lend to people earning below a certain wage (£15-25k are some of the minimums i have come across) which is why they are coming back as not prepared to lend.

Does that mean you have a deposit of around £30-40k then?

If you have found companies prepared to offer you something, check their criteria first just to double check as the calculators arnt always spot on.
If so go with one of them or like has been suggested go and see a mortgage advisor, they may be able to beat what you have found.

betsie34

Although I know I'm going to go on notice of redundancy between June and October this year, can I still secure a new mortgage now? I expect my loan to valuation to be approx 50% and want to borrow £60k on a salary of £28,000.

Can you give any guidance??

Yorkie1

betsie34 wrote: »

Although I know I'm going to go on notice of redundancy between June and October this year, can I still secure a new mortgage now? I expect my loan to valuation to be approx 50% and want to borrow £60k on a salary of £28,000.

Can you give any guidance??

You will need to declare the redundancy if it's definitely going to happen or you are already under formal notice of risk (failure to declare it is likely to be fraud). It's likely to affect the lender's decision.

PS In future, it's always better to start your own thread rather than hijacking someone else's - as there's a risk of replies getting muddled up between different questioners!

DVardysShadow

betsie34 wrote: »

Although I know I'm going to go on notice of redundancy between June and October this year, can I still secure a new mortgage now? I expect my loan to valuation to be approx 50% and want to borrow £60k on a salary of £28,000.

Can you give any guidance??

Go here http://forums.moneysavingexpert.com/forumdisplay.php?f=15 and use the 'new thread' button to start a new thread. No point mixing up your situation with mug's situation.

mug51

thanks for the advice susiewoozy and ACG

Conrad

OP - what made you use the title 'quick question'?

Lots of threads use this phrase but often there are amny issues involved so a quick question never is.

didabuf

Mug - if you try the nationwide calculator it will tell you exactly what they are willing to lend. we have just got a mortgage with them and when we went to our first meeting the aarange it the calculator they used was exactly the same as the one on the net