Chances of a Mortgage

corkyefes

Good Morning,

This is one for the brokers out there or people in the same situation.

I would like to tell you my situation regards to getting a mortgage and hopefully some advice can be given.

I am planning to move out with my girlfriend at the start of next year and was wondering if we would have any problems getting a mortgage.

Situation
Joint Application. Earnings totaling 35k between us.

Applicant 1 - Main Earner
- Already has a mortgage which is currently on a consent to let and has tenants in (rolling 1 year consent to let from the bank)
- £225 loan (3 years left) but no other debts

Applicant 2
- Has no debts at all.
- Pays car insurance of about £125 a month.
- Has 3 missed payments on her credit card about 2.5 years ago.

We are looking to borrow in the region of 90k - 100k and we will have a deposit of 9k when we apply for a mortgage (we have separate money for fees etc).

- What is our chances of a mortgage in the above situation?
- Will a good broker be able to find us a deal?
- With the above deposit, could we only borrow 90k?

Any advice much appreciated.

ACG

10% deposit is the bare minimum really.

The 3 missed payments...are they showing as a 3 or three 1's?

Is the property self financing? ie what is the monthly mortgage and how much is the rent? Is there any reason why you are keeping this property? Can it not be sold?

I dont think this will be easiest to place but i think it will be possible.

corkyefes

10% deposit is the bare minimum really.
What kind of percentage would be required do you feel?

The 3 missed payments...are they showing as a 3 or three 1's?
She missed the payment in 3 consecutive months.

Is the property self financing? ie what is the monthly mortgage and how much is the rent? Is there any reason why you are keeping this property? Can it not be sold?
The rent charge covers the mortgage payment.
The property cannot be sold for a certain reason. Its not an option.

I dont think this will be easiest to place but i think it will be possible.

Thanks for your quick reply.

ACG

I think 15% will make this possible.

You might get away with 10% but im not sure (its not something i have had to research at 90%).

hamster2013

- £225 loan (3 years left) but no other debts

£225? Really? or £225k ?
that is a huge loan - depending on the property value - at your earnings....

what would happen if there were no tenants for 2 months ? How would you cope financially ?
what if the boiler broke down AND there were no tenants ?
is the rent declared? Do you have tax returns for it ? (as if you don't - then forget about the bank taking into consideration your rental income - they will ONLY see the £225k debt)

banks are going to want to know all this...

Thrugelmir

Why are you unable to live in your existing property?

corkyefes

- £225 loan (3 years left) but no other debts

£225? Really? or £225k ?
that is a huge loan - depending on the property value - at your earnings....

what would happen if there were no tenants for 2 months ? How would you cope financially ?
what if the boiler broke down AND there were no tenants ?
is the rent declared? Do you have tax returns for it ? (as if you don't - then forget about the bank taking into consideration your rental income - they will ONLY see the £225k debt)

banks are going to want to know all this...

Hello,
Thanks for your reply.

The loan is actually £225 a month (Total £7.5k). Not a 225k Loan!! Haha

Also with regards my existing property, I have a tenancy agreement with the tenant for the next 10 years and a clause saying they must give me 3-6 months notice before they can leave.
Would the bank take this into consideration?

The tenant is also a family member so I know they will not leave me in the lurch (which i understand the bank won't care about), which is also the reason why I cannot sell.
I never actually made you aware but my existing mortgage is a joint one aswell which surely i should only be accountable for half?

Regards

neverdespairgirl

corkyefes wrote: »

I never actually made you aware but my existing mortgage is a joint one aswell which surely i should only be accountable for half?

Regards

Unlikely. Most mortgages are "joint and several" liability, which means you are both liable for all of it. If the other person on the mortgage does a bunk, they can and will come after you for the whole lot.

hamster2013

corkyefes wrote: »

Also with regards my existing property, I have a tenancy agreement with the tenant for the next 10 years and a clause saying they must give me 3-6 months notice before they can leave.
Would the bank take this into consideration?

no tax return = bank will not take the rental income into consideration
but the £225/month will be taken into consideration to calculate your affordability.

they will ask for many months of bank statements,so expect to be scrutanized