Need a mortgage with high income multiple

windowwindow

Hi,

I'm about to give up hope here but thought I'd try this board before I do.

I have had an offer accepted on a lovely flat in London for £250k.

I earn £43600, (I get a bonus but can't include it, its not guaranteed) and was looking for a mortgage of £237500 (95% LTV), 5.4 times my income. I know its a lot. I would like a 2 year fix, interest only for the 1st two years.

HSBC have a graduate mortgage, and when I phone oringinally they said we would usually lend you £218k, but that it looked like I could get up to £265k within their discretion.

So I looked within that range and what I can afford and put an offer in on this flat of £250k. Its a 2 bed flat and I'll be expecting to get £550 a month rent on the 2nd room.

HSBC have turned me down on affordability( The MA also said she reckons they are getting tighter on what they'll lend). I know it sounds a lot but I'm confident I can afford it, I've been saving hard for the deposit, and feel like the chance of buying something in London is slipping from my reach. My salary is likely to rise quite a bit in the next 2 years, and I get a bonus which they can't take into account.

Creidt is perfect, except for the number of checks companies have been doing on me in the last few weeks! No loans, no defaults, no credit card balances.

I've talked to London and Country and they couldn't go that far. Best was C&G, who would have given me £227k.

Alliance and Leic passed me onto a broker that would do it for 7% but I don't want to do that.

Guarantors are not an option. Getting more money is not an option.

Any ideas on where I can get somebody to give me £237k, not at a ridiculous rate?

I don't want to take out a loan if its not affordable, so I don't mind if people want to post and tell me I'm crazy, but I have thought about it, and feel like I can afford it.

Thanks.

kingkano

We are in a similar situation and we have been offered a 5.4x from northern rock. It depends what you call a silly rate though? They will ask you to take it on 5yrs or longer fixed at around 5.79. It is fully flexible though which could be handy with your increasing salary and bonuses....

We did go through a broker so not sure if that helped our case or not?

c&g were the only others who would consider the amount we wanted, and as they havent done it for you I dunno.....

herbiesjp

How much is the bonus and have you received a bonus in the past? If so what were the past bonus figures?

kenshaz

The standard of living that you now enjoy will be eroded,if you are going to commit yourself with those ratios you must be sure that this property has wonderful potential.

JoeK_3

windowwindow wrote: »

Hi,

I'm about to give up hope here but thought I'd try this board before I do.

I have had an offer accepted on a lovely flat in London for £250k.

I earn £43600, (I get a bonus but can't include it, its not guaranteed) and was looking for a mortgage of £237500 (95% LTV), 5.4 times my income. I know its a lot. I would like a 2 year fix, interest only for the 1st two years.

HSBC have a graduate mortgage, and when I phone oringinally they said we would usually lend you £218k, but that it looked like I could get up to £265k within their discretion.

So I looked within that range and what I can afford and put an offer in on this flat of £250k. Its a 2 bed flat and I'll be expecting to get £550 a month rent on the 2nd room.

HSBC have turned me down on affordability( The MA also said she reckons they are getting tighter on what they'll lend). I know it sounds a lot but I'm confident I can afford it, I've been saving hard for the deposit, and feel like the chance of buying something in London is slipping from my reach. My salary is likely to rise quite a bit in the next 2 years, and I get a bonus which they can't take into account.

Creidt is perfect, except for the number of checks companies have been doing on me in the last few weeks! No loans, no defaults, no credit card balances.

I've talked to London and Country and they couldn't go that far. Best was C&G, who would have given me £227k.

Alliance and Leic passed me onto a broker that would do it for 7% but I don't want to do that.

Guarantors are not an option. Getting more money is not an option.

Any ideas on where I can get somebody to give me £237k, not at a ridiculous rate?

I don't want to take out a loan if its not affordable, so I don't mind if people want to post and tell me I'm crazy, but I have thought about it, and feel like I can afford it.

Thanks.

You need to speak to a whole of market mortgage adviser, as all lenders criteria is different. Affordability would be my concerns and if you did proceed I would recommend a good fixed rate.

JoeK

MortgageMamma

If you looked at a longer term fixed rate, say five years, this might be possible with some lenders. how many searches in past few weeks? Dont go to an adviser who charges, really no need, I know most do in London but there's plenty who are phone based throughout the UK who dont charge

JoeK_3

MortgageMamma wrote: »

If you looked at a longer term fixed rate, say five years, this might be possible with some lenders. how many searches in past few weeks? Dont go to an adviser who charges, really no need, I know most do in London but there's plenty who are phone based throughout the UK who dont charge

I'm suprised at London and Country, I could have placed this easily!

How's it going MortgageMamma?

It's a long drive down to London!
Where do you get London and Country from?

I keep reading the thread and reading the thread, have I missed something?

What's wrong with fees being charged?

JoeK

herbiesjp

@ JoeK

windowwindow wrote: »

I've talked to London and Country and they couldn't go that far. Best was C&G, who would have given me £227k.

I think that is what MM is talking about.

Each business model is fine, as long as it is all disclosed to the client up front. Not all London brokers charge a fee though


@ OP
Have to agree with MM, that unless L&C have got other factors that they have taken into account, you should have some options available to you.
Affordability would definitely be a major concern here, however you have based your income multiple on your basic salary alone - in reality you have already got contingency for extra income i.e the bonus and the rent a room money (neither are guaranteed, but they do improve the scenario somewhat)

HTH

JoeK_3

herbiesjp wrote: »

@ JoeK




I think that is what MM is talking about.

Each business model is fine, as long as it is all disclosed to the client up front. Not all London brokers charge a fee though


@ OP
Have to agree with MM, that unless L&C have got other factors that they have taken into account, you should have some options available to you.
Affordability would definitely be a major concern here, however you have based your income multiple on your basic salary alone - in reality you have already got contingency for extra income i.e the bonus and the rent a room money (neither are guaranteed, but they do improve the scenario somewhat)

HTH

Thanks for pointing this out.

JoeK

MortgageMamma

JoeK wrote: »

How's it going MortgageMamma?

Fantastico - I'm one happy Mamma!

It's a long drive down to London!

I was in London this weekend, had the most fabulous time in the most fascinating of company. Did I mention I do most of my business phone to ear?

Where do you get London and Country from?

The newsagents?

I keep reading the thread and reading the thread, have I missed something?

Yes, pay more attenion or its 1000 lines for you after work tommorow

What's wrong with fees being charged?

Absolutely nothing if the client agrees with it,occassionally I charge a fee if I have to see a client face to face and it takes a whole day or more travelling. But I support this sites moneysaving principles so I always tell MSE'r not to pay a fee if they can help it.
JoeK

Warmest regards

MortgageMamma x

JoeK_3

The_Bear wrote: »

L&C would not be recommending C&G anyway at the moment. I am surprised by our response to this matter, please PM me the advisers name and yours and I will personally look into this matter. I suspect there is more to this than you have said, as said previously, I could easily place this.

The Bear, are you from L&C?

JoeK