"non-mainstream" mortgage lenders

ACG

Interest only is a nightmare to get now. They have to question it to the hilt. A lot of lenders dont do Interest only for the majority of people.

GMS

OP you say £3500 is 15% of your combined annual salary so you earn jointly around £20,000??

HSBC have, I think a minimum salary of 50k joint or 30k sole.

Has this been checked?

princessdon

ACG wrote: »

Interest only is a nightmare to get now. They have to question it to the hilt. A lot of lenders dont do Interest only for the majority of people.

I understand that but when we have saving x 3 value of the interest only and endownments due 5 years before mortgage end at x 2.5 of the interest only value you'd think they would make you feel less like a criminal.

End of the day we are currently getting 1.25% more in savings than paying off the interest only side, so want to utilise savings. I pay off every penny received in interest as a capital payment (my own version of offsetting), but they really made me feel uncomfortable.

As I say I appreicate why they are being precautious but I came off the phone doubting their acceptace (which they still might as nothing is secure at this stage). Goodness knows how people like OP who are first time buyers must feel - they just don't instill confidence that all will be OK as long as paperwork matches verbal information,

jason1231972

GMS wrote: »

OP you say £3500 is 15% of your combined annual salary so you earn jointly around £20,000??

HSBC have, I think a minimum salary of 50k joint or 30k sole.

Has this been checked?

£23034.80 (basic) to be precise. We earned £27146 between us last year, but have been quoted on basics only. Yup, this was made abundantly clear during the appointment, and it raised no concerns at all.

We took a quote - and were AIP'd - at 90% LTV. 90% LTV is only £36k. I've inherited an unencumbered ex-council property from my mum which is worth peanuts (good structural condition, desperately in need of complete modernisation. There is literally nothing that doesn't need doing).

We need 50% LTV / £20k (buying sibling out). We want 70% LTV / £28k, the £8k being for the biggest modernisation projects. We have inheritance cash of an equal value for the smaller things like new kitchen, decorating, furniture, etc.

So, our bottom line is 0.87 x joint salary, and the top line is 1.23 x.

ETA: you put the wind up me there, GMS

Just rang them and the £30k sole / 50k joint requirement is for interest-only applications. There's no minimum salary requirement for capital repayment mortgages.

GMS

Apologies. I knew I had heard the ruling.