£4,200 net income per month and can't get a mortgage!

MoneyMagic01273

lilygirl85 wrote: »

Wow I didn't think there would be so many posts since I logged in yesterday morning!

I am very pleased to report that my amazing parents have offered to lend us some money so that we have a 15% deposit. Whilst we know that we could have easily saved the extra money, we don't want to lose the house.

We have now been approved by NatWest. We decided to stick wiht them because the monthly repayments are so low - only £633 per month for a £140,000 mortgage. We were advised by two separate, independent brokers that we would find it very difficult to get a better offer.

Thanks to everyone who offered moral support and advice. I hope I didn't come across as assuming that for some reason we were "entitled" to a mortgage - that was never my intention. I am genuinely concerned about the lack of accessibility to 90% mortgages. My fiance and I are lucky to have a decent income and to have had a 10% deposit but most of my friends/colleagues of the same age just aren't in that position. They are all saving money on the assumption that they will be able to get a 90% mortgage, but my experience clearly shows that it isn't necessarily going to be the case.

By the way, I'm not sure where the £25k wedding idea came from - I'm not stupid! Our wedding is very carefully budgeted and is going to cost just under £10k for our dream day. Some may think this is wasted money but I absolutely do not care!!!

Glad its all worked out Lily - good luck with the house purchase and wedding :T

Thrugelmir

lilygirl85 wrote: »

They are all saving money on the assumption that they will be able to get a 90% mortgage, but my experience clearly shows that it isn't necessarily going to be the case.

Then do pass your experience on to your friends.

All the best for your Wedding Day.

[Deleted User]

lilygirl85 wrote: »

We have now been approved by NatWest. We decided to stick wiht them because the monthly repayments are so low - only £633 per month for a £140,000 mortgage. We were advised by two separate, independent brokers that we would find it very difficult to get a better offer.

On a 25 year repayment mortgage, that would need to be a rate of 2.5% ???

getmore4less

lilygirl85 wrote: »

We have now been approved by NatWest. We decided to stick wiht them because the monthly repayments are so low - only £633 per month for a £140,000 mortgage. We were advised by two separate, independent brokers that we would find it very difficult to get a better offer.

whats the deal? rate, term, fees?

Thats seems a bit too good unlesss a very long term,
reverse calc
5.45% I/O
4.54% 40y
4.15% 35y
3.55% 30y
2.56% 25y

offer on the web for 85% ltv is 2y fix 3.99%(4% followon) £1k fees

Thrugelmir

getmore4less wrote: »

whats the deal? rate, term, fees?

Thats seems a bit too good unlesss a very long terms,
reverse calc
5.45% I/O
4.54% 40y
4.15% 35y
3.55% 30y
2.56% 25y

offer on the web for 85% ltv is 2y fix 3.99%(4% followon) £1k fees

Would suggest a 35 year term. :eek:

Doesn't appear that good advice was given.

Rupert_Bear

lilygirl85 wrote: »

Wow I didn't think there would be so many posts since I logged in yesterday morning!

I am very pleased to report that my amazing parents have offered to lend us some money so that we have a 15% deposit. Whilst we know that we could have easily saved the extra money, we don't want to lose the house.

We have now been approved by NatWest. We decided to stick wiht them because the monthly repayments are so low - only £633 per month for a £140,000 mortgage. We were advised by two separate, independent brokers that we would find it very difficult to get a better offer.

Thanks to everyone who offered moral support and advice. I hope I didn't come across as assuming that for some reason we were "entitled" to a mortgage - that was never my intention. I am genuinely concerned about the lack of accessibility to 90% mortgages. My fiance and I are lucky to have a decent income and to have had a 10% deposit but most of my friends/colleagues of the same age just aren't in that position. They are all saving money on the assumption that they will be able to get a 90% mortgage, but my experience clearly shows that it isn't necessarily going to be the case.

By the way, I'm not sure where the £25k wedding idea came from - I'm not stupid! Our wedding is very carefully budgeted and is going to cost just under £10k for our dream day. Some may think this is wasted money but I absolutely do not care!!!

Great news and I trust you have budgeted just as carefully in how you are going to repay the money your parents have kindly loaned you.

The_J

ringo_24601 wrote: »

On a 25 year repayment mortgage, that would need to be a rate of 2.5% ???

Clearly not 25 years then. :doh:

Rupert_Bear wrote: »

Great news and I trust you have budgeted just as carefully in how you are going to repay the money your parents have kindly loaned you.

It's a gift.

Thrugelmir wrote: »

Would suggest a 35 year term. :eek:

Doesn't appear that good advice was given.

35 years isn't bad if it improves short term cash flow and they can get the property they want now for less than they can get it in the future + rent.

As for the 'advice' given by brokers, I very much doubt they went into much. This seems like a girl who wants everything right now, knows better than others and doesn't take advice. My kind of girl.

Thrugelmir

The_J wrote: »

35 years isn't bad if it improves short term cash flow and they can get the property they want now for less than they can get it in the future + rent.

That extra 10 years above a 25 year term adds £45,000 of additional interest to pay, and that's if interest rates remain static for the entire term.

The_J

Thrugelmir wrote: »

That extra 10 years above a 25 year term adds £45,000 of additional interest to pay, and that's if interest rates remain static for the entire term.

Why are you assuming they will keep the mortgage for 35 years? You think an accountant and solicitor borrowing 2x income are going to need 35 years to pay off this mortgage? :rotfl: It'll be gone within 5 years if they have any sense.

macman

They're getting married next year, if they have children thereafter, their income may be halved and their outgoings soar.
Or their income may rise-we no way of knowing, and nor does the lender.