Mortgage affordability advice! Please

Vikaroo

I have been advised to re post this here after posting elsewhere in the forum. So apologies for the dupe!

We have found a house which we want to buy in a private sale and the owner is asking for 135k for it.

My boyfriend earns 16k a year and I earn 18k basic and 21k with enhancements in the NHS. We were saving 10% but now we are going for the 5% with the government guarantee scheme. We have 11k currently saved and it will be February by the time us and the seller are ready by which time we will have 14k saved.

Jointly we pick up 2300-2500 a month and our mortgage will be around £600 a month. I worked out the cost of running the house including the mortgage will be around 1800 all in.

We will need to borrow £128,200 over 30 years to buy the house and our deposit will be £7,500. I think this is realistic and do able but will the mortgage lenders think so? I had a mortgage in principle a good 6 months ago with bank to see if they would lend to us and that came out as ok but that was when we were going for 10%.

Any opinions welcome except nasty ones as there seem to be a lot of people on here who seem to only want to do that and it's not helpful.

Thank You

ACG

It sounds fine. you look like you have done your sums and it stacks up at this stage.

95% mortgages - one of the 2 lenders underwrite based on 7% interest, so i have been told. The sums to me stack up even without the enhancements so i think you will be fine.

At 95% you have to be squeaky clean so just make sure your credit report is fine.

chambta

RBS/Natwest definitely score the 95% LTVs more strictly. Slightly odd when you consider the nature of arrangements should it be defaulted on.

ACG

But they dont want people defaulting.

At higher LTV and higher interest rate - that is more likely. I have been told they actually underwrite as though the interest rate is 7%.

Although the govt is backing 20% of the property value the lender doesnt want the hassle of repossessing, if there is any doubt they will decline.

chambta

Of course they don't. But if the government backing isn't helping any actually get approved then it rather smacks of the bank paying lip service to the whole scheme.

Thrugelmir

Vikaroo wrote: »

Any opinions welcome except nasty ones as there seem to be a lot of people on here who seem to only want to do that and it's not helpful.

Not that I've noticed. This forum is very friendly if at times direct. Many people on this forum have experience of finance in some form. So not always expressing a personal opinion.

Take on board any comments made , chew them over and make your own decision. As FTB's my only advice is don't rush. The larger the deposit you put down The easier life will be in the future.