affordability

Danny37701

Hi there, wonder if I can get some good advice...

I have a sizeable deposit for a house but mortgage lenders wont accept my current financial income (being too low )
What can I do?

lee111s

Save a larger deposit or purchase a less expensive property.

Thrugelmir

Buy a cheaper house then move up the ladder at a later date.

katejo

Danny37701 wrote: »

Hi there, wonder if I can get some good advice...

I have a sizeable deposit for a house but mortgage lenders wont accept my current financial income (being too low )
What can I do?

What proportion is the required mortgage of the overall property price? Is the multiple of your annual salary more than 3.5?

Danny37701

210k purchase price
60k deposit
150K mortgage needed

25k earning pa

Simon_gloster

Your Question is based purely on your income. You have to look at properties at 190k or less. More realistic on that deposit 180k assuming you have no outgoings.

katejo

Danny37701 wrote: »

210k purchase price
60k deposit
150K mortgage needed

25k earning pa

So you are asking for a mortgage which would be 6 times your income. That must be the problem. In my experience of paying a monthly mortgage, I have never had a loan of more than 3 x my income. Remember that you have to budget for other bills as well including insurance, gas/electricity/council tax. Also interest rates could increase at some point in the future. How on earth would you cope with a 5-6% interest rate? My salary is slightly higher than yours. My current mortgage is below 3 x my income as I have paid a lot off already. If interest rates were now about 5%, about a third of my take home pay would go on just the mortgage.

I paid about 210K for my current house but my mortgage to buy it was only 67K

Dave_Ham

5.5 times income is achievable currently.

Do you not have any additional income, as not far off and £25k exactly suggests there may be a bit more/less, or only recently started job..?

Danny37701

self employed avg earning over last 3yrs

GMS

What are the 3 years figures?

You may be able latest figure if higher

Danny37701

I have buy to lets also, I have released a bit to get where I am, some are on very good deals also - life time trackers - which I wouldn't want to disrupt, I'm now realising that I might have to release some more to make this work.

I'm just very annoyed that I've been straight with my advisor, in turn he has put it forward to the mortgage lender, who have progressed my application and then decided at the eleventh hour that they are going to decline