Mortgage help please

Lauraof

Hi,

I'm after some advise on looking to buy a property,i currently have a house that i have 100% mortgage on and is valued at about £145,000. This is a very small two bedroom property and my husband uses one of the rooms to run his business. We would like to start a family so I need to understand my options, I currently earn £50,000 so what is the size of mortgage i would be able to apply for, i saw somewhere there was talk of 95% mortgages again. My husband cant do anything as the business is not earning much and he has a lot of debt from previous life. I want us to be able to move forward are there any suggestions on how we can do this ? I dont have a deposit saved but surley there must be other people in this situation ?

gandalf16

Without a deposit it's going to be difficult to get anything
Even with your husbands position ie self employed & has debts on your salary it should be possible to get a decent mortgage in just your own name & put your husbands name on the deeds ( HSBC offer this service)
Is there any possibility that your existing property has risen in value at all? Then you'd have a small deposit

Lauraof

I'm thinking anything we had out of the property would cover the solicitor fees etc do you knwo what the maximum i could look at borrowing is likley to be ? The other option is that i borrow some money to put down as a deposit ?

Lovelyjoolz

Borrow money from who?

DannyboyMidlands

You earn a decent salary so why not just save a deposit? The interest rates on high LTV's are a rip off.

Lauraof

i was thinking of a bank loan to put some money down as a deposit ??

princeofpounds

You could, with a deposit, likely borrow something around 4x salary. But the deposit is the critical thing; without it you could borrow almost nothing.

High LTV mortgages have not returned on a wide scale and are unlikely to. Often the deals that get written about in the papers are exceptionally limited in scale (essentially created for publicity purposes) or have hidden clauses (like requiring guarators or something).

princeofpounds

i was thinking of a bank loan to put some money down as a deposit ??

You will be asked the source of your deposit. If you put down loan you will be refused. If you don't, you will be committing mortgage fraud.

The whole point of a deposit is to give the bank a genuine safety cushion, surely that is obvious.

gandalf16

Prince of Pounds is correct ( to an extent)
If you took a loan now & used the proceeds in 12 months time for a deposit then the only thing the bank would be interested in physically seeing the deposit available.
The loan would be taken into account as part of the affordability check.
Having worked as a Mortgage Adviser myself I have seen this happen dozens of times
But on a £50k salary it shouldn't take long to save a decent deposit. You can still get 90% mortgages from Hight Street banks