Will my BR affect my husband's mortgage?

Miss_Ratty

Hi there,

I went bankrupt in 2007, and have since then married. My husband and I are looking to move and have our house on the market. Hubby has already got a mortgage on his property, but is looking to go repayment as opposed to interest only when we move. His current lender has said they will lend up to 250k, which I do find surprising as his salary is just over 30k...as in, I think they are lending a lot! I never want my stupidity to affect his credit in any way, as he is brill with money, so we have kept separate accounts, but I wonder if my just being married to him could affect his rating in any way?

Also, aside from his wage being 30 k, do you think that the banks are responsible in lending this much even though he has a clean rating, has always made repayments etc.? I earn the same as he does, but my wage wasn't taken into account in factoring the mortgage, but we do have a 20% deposit if we get the right price for our house.

Thanks so much in advance x

opinions4u

Nobody's lending eight times income.

Either he's fibbed, somebody's pressed the wrong button or £250k is purchase price, not mortgage amount.

Tiddlywinks

I think you should speak with an IFA, I can't see how you'd get £250k loan on a salary of £30k.

Also, does the current lender know about your bankrupt status? Are you linked by any accounts at all with your husband?

Miss_Ratty

Sorry, my bad. The purchase price can be up to 250k...the current mortgage is for 114, and the house is on the market for 145 (so obviously depends what we get for it). His current bank, who his ortgage is with, said that amount would be ok, given that he also has 20k in savings.

I've never been linked to him by any accounts. Went BR in 2007 and married in 2010, so wasn't linked before, and have not been linked since.

Thanks so much for your help.

Does this amount sound like a mad amount to lend still given the climate?? X

Simon_gloster

The figures dont stack up.

For arguements sake, lets say he gets £150k maximum mortgage +20k +25k from the sale. Thats £195k purchase price but also wiping him clean out.

This doesnt take into account any debt or children (if any) and in reality you should be looking around 4 times his income as he will have to declare he is married and this will hold back the amount to lend. Therefore purchase pruces fro 150-170k are more realistice (and it also assumes you get 145k for it).

Miss_Ratty

There are no debts at all, no children either. The bank has basically said we can keep the mortgage we currently have at the current rate, and they will lend him up to an additional 105k at 3.79% fixed for two years... We are going to see an IFA in two weeks time as well, so will get another opinion...but I still think this is too much, and as he hasn't gone through the mortgage in principal bit, probably a sales tactic?

Miss_Ratty

When I say we by the way, I mean him, as everything is in his name, he had be house before we got together.

Dave_Ham

The numbers he has been given are definitely incorrect - as the chaps above have said.

Most he will achieve is 5 * annual salary, guessing something has been incorrectly keyed or communicated...

All the best