Advice please - again x

Angelandrea

Hey guys, remember i posted a while ago about me and my prtner getting a mortgage from NR, in just his name and his icome was around the £25k P/A mark, as he is a joiner and on price work, any way, his employer i think did reference sayign he can earn up to £380 per week before bonuses, and also his wage slips for his first week ( only been there 3) was for 280 after tax for 2.5 days then the current one is for £318 after tax for 3.5 days again.

What does anyone think about his income in relation to the mortgage, bearing in mind purchase price is 116.750 snd we are borrowing 121.000.

Thanks in advance

wardlaw

HI

Angelandrea

I think you will manage alright The income multipliers that NR use are 4.8% X salary ,so you fit into that category without stretching the income too far

John

Angelandrea

however i have just called NR myself and they said the co reference stated £368.00 per week with bonus of up to £140.00 per week, still think we will b ok ??
xx

wardlaw

If Bonuses are guaranteed this will form part of the guaranteed Gross Annual income which is more than £25k So Looks okay as long as income is garanteed

AndrewSmith

Hang on a sec,

Northern Rock accept only 50% of guaranteed or regular other income on their together product which is applied to the income before the multiple calculation is carried out.

In the above case it woud work as follows:

£368.00 x 52 = £19,136 Basic
£140.00 x 52 = £7,280 Bonus

Actual income used for multipliers = £19,136 + £3640 (50% of the guaranteed bonus)

Total £22,776

Therefore you would fall into the multiplier bracket of 4.5x income with the top credit score giving total borrowing of £102492.

Remember though that their multipliers are based on credit score as well, 4.5x is the maximum you are likely to get.

Angelandrea

we wont get our house then ?? :-)

AndrewSmith

Angelandrea wrote: »

we wont get our house then ?? :-)

You have to appreciate that within the scope of a forum it is impossible to give a definative answer as to whether a lender will accept you for a mortgage.

That said however, based on the figures and situation you post above it would not be possible for you to achieve the level of borrowing you are looking for.

Angelandrea

plus some extra income on a 2nd part time job x

Angelandrea

so what if we took 102k plus additional loan on top ??

AndrewSmith

The monthly repayments to the additional loan would be annualised and deducted from your salary before the lender applies their multiple.

Example:

If you took a loan costing £100 per month they would times the 100 by 12 to make £1,200 then deduct this from the useable income prior to applying the multiple like so:

£22,776 - £1,200 = £21,576 x 4.5 = maximum mortgage available of £97,092

Angelandrea

Please note, he does the work, its not a lie, its just not delcared of course if they ask we will tell the truth !!

Im not about to commit fruad here !