Is this achievable?

fullmoon_2

Is £170000 really achievable in our circumstances?

shortchanged_2

fullmoon wrote: »

First time buyer
Property £245000
Deposit £75000, extra £5000 for other cost
Mortgage required £170000
LTV 70%


Joint application with wife
My salary £25300, full time fixed term (3 months) contract since November 2011, no adverse credit issue, no loan. 2 children - 4 years & 2 years, no childcare cost.

Wife homemaker, full time career of disabled child. She had credit card late payment around 2006 but paid and settled.
Career allowance £3000
Tax credit £4400 Joint name
Child benefit £1700
DLA £2700 she receives but I think on child's name.

Nationwide takes benefit (some?) as income and if successful will offer maximum £140000. Yesterday called Natwest, told they will take all benefit and maximum £170000 depend on credit score.

My questions are:

Is £170000 really achievable in our circumstances?
Is 3 months fixed term contract a issue?
Will wife's late credit card payment in 2007 effect to get a mortgage?

As always advised here, will check both credit report soon. We are in London thats why property price & salary ratio high.

Total family income including all benefits £37100

Sorry but I would say that sounds like you want to borrow too much on your income. I assume living in London that your cost of living is also generally higher than other parts of the country.

I'm sure there are some on here that would say this is achievable but seriously consider that you are likely to be over stretching yourselves borrowing that amount.

Swafe

I think the biggest problem there is the 3 month contract on a 25 year mortgage, i wouldnt even consider borrowing that much money unless my job was 100% secure (altho i guess this is hard these days!!) and i expect this is what the bank would also think, however the fact you have a big deposit would weigh in your favour as you can prove your able to save

shortchanged_2

Swafe wrote: »

however the fact you have a big deposit would weigh in your favour as you can prove your able to save

We don't know if this is the case though as the OP has not revealed this.

Maybe they have had a payout or something else.

Dave_Ham

Hi there,

Yes, subject to the detail you can get a mortgage for the amount required.

Whether it is affordable is down to you, but certainly achievable.

All the best

jayroc2k

I'll leave affordability to you to decide. Many banks will consider a multiple of your income to be the ultimate limiter hence many in your case previouly used self cert as a way to "cheat the system".

banks now are more careful with lending. i was limited to 4.25x by santander and 3.5x max by HSBC.

you may need to use a broker in this case to access specialist mortgages