What's the chances of getting a mortgage?

TheGame7

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MortgageMamma

Can you give me some details about what you are trying to do? you are looking to buy a house for £259,950 (is that an actual purchase price or the negotiated one? and selling one for £120,000. Do you have a mortgage on the property you are selling? how much do you actually need to borrow?

herbiesjp

All depends on the figures you are looking at;

purchase price is approx £259,950, but what is the mortgage you are looking for? What amount of deposit do you have available?

Do you have any other debts in the background, HP, credit cards, loans etc?

Are your credit histories good?

TheGame7

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herbiesjp

ok - So £260k maximum purchase price with a 10% deposit would mean a mortgage of £234k

That would equate to 7.8 times your joint income.

I would suggest strongly looking at other properties,as this kind of borrowing would be difficuly to maintain I beleive on your current incomes.

Unless you could look to put down more of the £120k from your own cash sale, you should be looking at lower prices properties

TheGame7

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herbiesjp

Sorry for that

So £260k less £120k = £140k mortgage

If you can put any extra funds then it would obviously reduce your monthly mortgage payments, however, on the basis of the deposit you are putting down you should find several lenders that could help

This situation looks very do-able and you will have the pick of the lenders to get the better rates

HTH

MortgageMamma

why are you adding your children to the mortgage, to use their income to boost yours (theres no need) or some other reason?

TheGame7

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herbiesjp

TheGame7 wrote: »

I was just putting forward the idea of putting my children on it thinking perhaps the increase in overall income would improve my chances on getting the mortgage. Plus once my oldest works, he will be living with us and putting money towards it. Is this not possible / not advisable?

So in summary..

Our house should sell for £125k.
We are more likely to have £10k up front than £20-25k. (Is it advisable to keep some savings?)
So £135k from the £260k house gives a mortgage of £135k.

After asking my partner..to be exact, my partner and my combined income before tax for the year is more £26k rather than the original £30k

With our wages being a bit less than I originally said..has this decreased my chances a lot? Or is it still very doable?

Would I need to take some real steps with lenders to ensure I'll get the mortgage, or at this stage will I only get the same advice as what you guys can give me. Just want to know as I wouldn't want to mess vendors around with offers before I knew I could get a mortgage.

No need to add the children

This is still very do-able in terms of getting the mortgage. What you would need to do is actually look at what this effect this will have on your monthly income/expenditure and whether taking this mortgage is actually workable.

You are right, in terms of making sure you can get the mortgage agreed. If the £260 is your absolute maximum, have a word with a fee free whoile of market adviser and let them come back to you with some options. Based on those options, you can then apply for an agreement in principle for the one you prefer. Based on the income multiple, it may need some paperwork going to the lender just to verify affordability, but you should be able to get something agreed very quickly

HTH

TheGame7

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