High Deposit, but struggling with the mortgage

Chorley87

HI Guys,

Thanks to all those who read and help,

I have struck a massive issue in my search for a mortgage. In the interest of transparency my position is as follows:

- Deposit - £102k
- Property Value - £340k
- Salary - £35k
- Commission - £15k

I thought with a deposit of 30%, this should all be quiet easy but at the moment i'm getting borrowing quotes well below what i need. Also my credit report has a default of £16 which is satisfied but has 3.5 years left to run.

Any help anyone can give to point me in the right direction would be a god send, i have been doing circle on this for months now and really need the expert eye of all the good folk on here.

Thanks

kingstreet

So, you want to borrow £238k on a total income of £50k.

4.76x income.

How many years P60s could you provide to evidence that commission earning?

Non-working spouse? Dependents? Credit commitments? Maintenance? Childcare costs? All of those are going to eat away at your maximum borrowing power.

Typically, a High Street credit scorer is going to use 100% of your basic, plus 50% or 60% of your variable earnings if you can evidence it over a longer period. That would give you no more than £220k, less the cost of the other things I mentioned.

Been to an independent or whole market broker yet?

Chorley87

the P60 isn't going to be possible as i have started a new job quiet recently which is paying me that currently in commission. I have virtually no outgoings such as dependants etc. All my cards and credit is up to date at the moment so nothing owing either.

I havent been to a broker yet but mainly as i am waiting for my credit report to be updated having paid off all my debts. Also I dont want lots of checks going on before I have really worked out how to get the right borrowing amount.

kingstreet

In which case, I'm sorry to say you won't get more than £220k, in my opinion.

amnblog

The reason your are struggling is because you have not taken sensible advice.

At worst a broker can tell you that you are being too ambitious and save you frustration and wasted time.

ghosti

a broker wont run a credit check on you without your permission, bu tthey will give you thier assessment of what they think you'll be able to borrow, as mentioned previously

ACG

Ive just tried calculators on 2 lenders i find lend the most and presuming they would accept the £15k commission (which i havnt checked) the most they would lend is £220k.

I think you are looking to push yourself just a little bit too much.

originalmiscellany

Also consider what would happen if you don't meet your commission targets, which is a possibility. Where would you stand then in terms of paying your mortgage on a month by month basis?

Thrugelmir

Chorley87 wrote: »

I thought with a deposit of 30%, this should all be quiet easy but at the moment i'm getting borrowing quotes well below what i need.

Earnings are equally if not more important.

Chorley87

Well i would be renting a room to a friend for 2/3 of the price of the mortgage so covering it without commission wouldnt be a problem. That and the fact i already pay as much in rent as the whole mortgage would be means it really shouldn't be an issue. Is that something that could count in my favour on an affordability basis?

somethingcorporate

No, very unlikely to sorry.