realistic chances of getting a mortgage

newbridge

Hi All,
Am a first-time buyer and viewing properties to buy. I earn around 30-31k per annum. My parents and friends are going to help me fund my deposit (10% - 20 %). I tried few calculators online of few banks(HSBC, santander, halifax, virgin).

I am looking for properties in range of £150k-160k. Am I being realistic? yes i can go to independent mortgage advisor's but thought, would be good to have an idea and decide whether to hold off buying until I gather some more deposit or is a right time to jump in.

Paying someone else's mortgage is hurting too much in my mind now...:mad:

I had an AIP from hsbc (upto 155k), but am worried mortgage might not be approved. Is it not too much X my salary?

_Andy_

Something's not right there - HSBC def don't do 5x

newbridge

yes, I had never thought I would be offered that much. Was only looking properties in range of £120k-130k before. But that raised my hopes and also the properties i was looking at.

I am with hsbc since like 9-10 years. Their credit check process also seemed very quick. 5 minutes wait and they gave me AIP paper!

somethingcorporate

You have friends that are going to give you money towards your deposit?

Why?

bigadaj

Not having the discipline to save a deposit isn't a good start. also there is no validation in what a lender may lend you, it s your debt to repay whether the house drops in value or interest rates rocket.

May sound harsh and be inappropriate in your case but this is starting to sound like a claim for mis lending in a few years....

kingstreet

Is the HSBC AIP for a mortgage of upto £155k, or the maximum purchase price is £155k?

If they are expecting a 20% deposit, £30k, that would leave you needing a £120k/£125k mortgage, at 4x income that's the usual HSBC maximum loan, AFAIK.

newbridge

kingstreet wrote: »

Is the HSBC AIP for a mortgage of upto £155k, or the maximum purchase price is £155k?

rechecking the document its

Decision in Principle 139500
For property valued up to 155,000
Ltv 90%

newbridge

somethingcorporate wrote: »

You have friends that are going to give you money towards your deposit?

Why?

Yes, cos I have been helping them when they were in need....

newbridge

bigadaj wrote: »

Not having the discipline to save a deposit isn't a good start. also there is no validation in what a lender may lend you, it s your debt to repay whether the house drops in value or interest rates rocket.

May sound harsh and be inappropriate in your case but this is starting to sound like a claim for mis lending in a few years....

I do take in your advice about saving more deposit.

But why do you think it would be mis-lending? I am still paying bank the legit deposit that any buyer would be doing. I have minimal monthly outgoings, no defaults, good credit history(afaik) and some credit balance which i will pay off soon.

Or do you mean in terms of "how much money they are lending times my salary"

Thrugelmir

My parents and friends are going to help me fund my deposit (10% - 20 %).

On what terms? Gift. Loan.

Is the lender aware?

and some credit balance which i will pay off soon

Depending on the amount this may well impact your application.


Gifted deposit and debt is a toxic mix for a lender. A most certain decline.

bigadaj

newbridge wrote: »

I do take in your advice about saving more deposit.

But why do you think it would be mis-lending? I am still paying bank the legit deposit that any buyer would be doing. I have minimal monthly outgoings, no defaults, good credit history(afaik) and some credit balance which i will pay off soon.

Or do you mean in terms of "how much money they are lending times my salary"

May well be inappropriate in your case, but yes it's the latter. The reason for me saying this is a long history of similar posts here, but also because the indication that the bank will lend you more money means that you I mediate.y want to borrow more. It may make sense to but a bigger house if this saves a move ina few years, but if you are happy with the original amount then it might be better not to be swayed by a bigger carrot. This is, after all, how we've got into the current mess with negative interest rates and the like.