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

lilygirl85

opinions4u wrote: »

I really dislike the "we're a loaded solicitor and accountant so should automatically be given a mortgage" attitude.

We've both worked hard to get where we are. It's not a "we're loaded" attitude, it's surprise and disappointment that we're seen as such a risk that we're being prevented from taking advantage of an advertised product.

Clearly we are not loaded, hence the fact that we only have a £16,000 deposit. We haven't been in our jobs long - I'm only 26 and haven't been able to save much as I have paid my way through university. My fiance put all of his savings into buying into his partnership so although our salaries look good on paper, we just don't have much cash.

We will carry on saving, but to pay the extra amount needed to increase our deposit to 15% and pay for our wedding we will need to save about £24,000 in the next 12 months if we want to get a house this time next year.

Very surprised that you would bother comment if you have nothing constructive to say.

opinions4u

lilygirl85 wrote: »

We've both worked hard to get where we are.

I'm sure you have, and it's admirable. But when you read the title of the post and some of your comments a feeling of entitlement comes across.

Others have worked harder, for longer, to earn less. Despite clean credit records they are often required to find a 15% deposit to borrow less than you want to borrow.

Just because you can clear £4k a month between you doesn't make you special or better than anybody else.

It's not a "we're loaded" attitude, it's surprise and disappointment that we're seen as such a risk that we're being prevented from taking advantage of an advertised product.

But the advert did state "subject to status" or similar somewhere within it. Nowhere did it say "we guarntee to lend a shed load to higher earners".

Clearly we are not loaded, hence the fact that we only have a £16,000 deposit. We haven't been in our jobs long - I'm only 26 and haven't been able to save much as I have paid my way through university. My fiance put all of his savings into buying into his partnership so although our salaries look good on paper, we just don't have much cash.

Indeed. The lender is taking in to account other debts, limited deposit and the like and saying what limited funds it has could be safer lent to somebody else - perhaps somebody with a bigger deposit.

We will carry on saving, but to pay the extra amount needed to increase our deposit to 15% and pay for our wedding we will need to save about £24,000 in the next 12 months if we want to get a house this time next year.

I hope your wedding is a fantastic day. You've made a choice to fund it which, as it turns out, restricts your choice of mortgage and / or property.

Very surprised that you would bother comment if you have nothing constructive to say.

In other posts you stated that there was "no risk" in lending to you. I pointed out that there is risk in lending to anybody. You also implied that there is no difference in risk between a 10% deposit and a 15% deposit when clearly there is. That is provision of factual information that can help you to make an informed decision on how to get a mortgage. Take it on board or not, I think it's constructive.

Despite the title you have given the thread, it's highly likely you can get a mortgage. Either from an alternative lender or by showing Nat West a bigger deposit.

You have options in front of you. See a broker. Scale back the wedding a bit to allow you to introduce a bigger deposit. Review other spending. It cost me £39 to get married.

getmore4less

lilygirl85 wrote: »

Clearly we are not loaded, hence the fact that we only have a £16,000 deposit. We haven't been in our jobs long - I'm only 26 and haven't been able to save much as I have paid my way through university. My fiance put all of his savings into buying into his partnership so although our salaries look good on paper, we just don't have much cash.

We will carry on saving, but to pay the extra amount needed to increase our deposit to 15% and pay for our wedding we will need to save about £24,000 in the next 12 months if we want to get a house this time next year. .

So 15 years banking is a bit of an exageration. yours is 9 years max that count.

Who is insisting on the big expensive wedding? get them to pay for it.

Could always delay the wedding a year.

Anything you could sell, cars are on a lot of peoples list of assets.

Anyway as has been said a broker will find you a deal might cost a bit more but that will only be for a short time if you focus on paying down the mortgage.

have you done a proper budget so you know where the money is going.
start with a SOA
http://www.makesenseofcards.co.uk/soacalc.html


If £160k will get you a "dream home" , what will £200k get?

there are a lot of houses out there what's dream today will just be another house if you go look at a few more.

Remember moving costs a lot of money, waiting a bit and skipping a rung or two could save loads of money.

I would step back and reprioritise your timescales, paying particular attention to where your money goes, it is very easy on big incomes to have your costs rise to meet the income.

rent somewhere dirt cheap, run cheap cars, cut other cost, mobiles, TV etc, going out, drinking you could probably save more than £2kpm, get the house saving up and bought, then all goes towards the wedding from then on.

A couple of 0% CC could carry some of the wedding costs over into the next years worth of savings. ifyou can save 2kpm for the next 2 years thats £48k to work on the creative cash flow.

macman

If out of a net income of £4,200pm (that's £50,400pa), you can't save £8K within 6-8 months or so, then I wonder how you are going to afford to run a house once you have bought it? How are you going to afford the possible big one-off expenses that can come with home ownership-for example you might need a new boiler, rewire etc? For that you need a cash reserve, or the ability to cover it out of residual income.
Where's it all going?
90% mortgages were no problem pre-recession. Now we're in a different world.

stuckdebt

What are you spending so much money on? Guess what.. I earn about 5k a year and live a relatively easy/happy life. my monthly spending (not on rent, etc) is not even £100.

Set yourselves a budget. Don't buy things that aren't necessary. Cancel that sky subscription, move into a cheaper place if you can.

snowmaid

opinions4u wrote: »

Make a choice.

Welcome to the real world.

Oh for heaven's sake, no need to be nasty!! What is the matter with you people! The OP has asked a straight forward question, why be b*tchy??

ekkygirl

Can't one of your parents get an £8000 loan for you? It sounds like you can more than afford to pay it back over a couple of years. I did that for one of mine.

snowmaid

opinions4u wrote: »

I really dislike the "we're a loaded solicitor and accountant so should automatically be given a mortgage" attitude.

You would read it that way..... What the OP is trying to get across is that if they are struggling to get a mortgage, what about the average Joe that doesn't earn their salaries - how are they managing to get mortgages. The OP is looking for advice or maybe a clue from someone who has been in their position.

Green really doesn't become you......

adindas

lilygirl85 wrote: »

My fiance and I both have good, stable jobs and we earn £4,200 (net) between us a month.

We have found a beautiful house that we would love to buy and have a 10% deposit, but have been refused a mortgage with NatWest on the basis that our credit rating is not good enough. Having checked our credit ratings, we are both at around 915 out of 999 on Experian. I should add that my fiance's credit report came back completely clear except for a single missed payment on a £12 phone bill in January 2007 (!).

NatWest would not give any reason for their refusal other than that "the system said no". We have both banked with NatWest for over 15 years and are so disappointed that we have been refused without any real consideration.

We are now worried about applying to other lenders as we have been told that it will affect our credit rating and will make us unattractive to lenders.

NatWest have said that they will only consider us if we can increase our deposit to 85%. Frankly, that sounds ridiculous because it is not going to change our credit rating and shouldn't really change their perception of our risk level. Having to save another 5% (i.e. in excess of £8,000) is going to take us an age because we are getting married in 12 months and wanted to be in our home before hand...

Any advice would be gratefully received.

Why need to stick to NatWest. try another one and a few more have a look waht they are saying.

If You have tried a few and still get rejaction, there must be something wrong that you need to find out.

Just for instance, It might happen, the income stability.. Some people might earn a lot but in the lender view it is high risk if it is not a permanent job. etc.

It could happens also with the stupid credit history that you are not aware of .... Let say some companies that you dealt with in the past reported mispayment but in fact it is not your fault thelender will still say it as it is. Unfortunately that is the way the stupid credit file in this country waork. The alwasy take side for the bank, the lenders and ignore the oridnary people.

As a general rule, the Lender is there to make money so if they see there is a strong case of making profit by leding they have no reason to reject the application. ....

nibs

snowmaid wrote: »

You would read it that way..... What the OP is trying to get across is that if they are struggling to get a mortgage, what about the average Joe that doesn't earn their salaries - how are they managing to get mortgages. The OP is looking for advice or maybe a clue from someone who has been in their position.

Green really doesn't become you......

Spot on snowmaid :T