Can I get a mortgage?

zubakuki

Hi and TIA for reading...

I want to purchase a house with my hubby for £440,000

We have just over £100,000 equity in our current home.

The government will loan us 20% on our purchase as it is a new build.

We need a mortgage for £250,000

My husband earns 30,000 per year.

I have been a sahm until this month when I was started a self employed job earning £20,000 a year.

We understand no one will take my wages into account.

Is there anyone who will lend us the money? We don't mind an interest only mortgage as we will over pay.

I am really confused as to why no one will lend the money the house is worth almost double their loan

Any help gratefully received,

Donna

GMS

Affordability is the issue and you are not going to get over 8 times income.

Lenders cannot justify lending based on equity.

zubakuki

GMS wrote: »

Affordability is the issue and you are not going to get over 8 times income.

Lenders cannot justify lending based on equity.

Thanks for responding.

We already pay £1200 per month on our current mortgage and have been doing so for almost three years. I can get a mortgage for less than that a month with borrowing 250000. Is no one out there willing to take the risk?

bigadaj

zubakuki wrote: »

Thanks for responding.

We already pay £1200 per month on our current mortgage and have been doing so for almost three years. I can get a mortgage for less than that a month with borrowing 250000. Is no one out there willing to take the risk?

No, because it would be seen to be reckless.

Do some calculations on your borrowing amount based on an interest rate of say 8%, could you afford that? Interest only would be what £1666 per month ish, and you have to pay the capital off at some point.

Thrugelmir

zubakuki wrote: »

I have been a sahm until this month when I was started a self employed job earning £20,000 a year.

How can you be so certain?

Simon_gloster

Your mortgage 3 years ago was based on your circumstances then. This new mortgage, which us what it will be whether borrowing the same or less will be based on your circumstances today, therefore its not going to happen so you need yo lower your expectations in the purchase price. At most you'll get 150k assuming you have no debt or children.

shortchanged_2

Are you insane?

You want to borrow £340,000 on a joint income of only £50,000.

Is this a joke?

kingstreet

The point here, is Halifax won't lend you the £252,000 you need.

The maximum they will lend is 5x gross annual basic income, plus 60% of additional/variable income, less credit and other commitments and the cost of a non-working spouse (or whose income can't be taken into account).

The net result here, is that this is a non-starter.

JQ.

And don't forget than if you want to sell the new house in 2 years time and the buyer incentives no longer exist it won't be worth anywhere near what you paid for it. Such incentives artificially inflate values.

As for borrowing £340,000 on an income of £50,000, crazy - at 8% that's a £2,650 per month mortgage payment.