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Would he get a mortgage?
Phantomjoy
Posts: 41 Forumite
Good evening all
Friend of mine is after some advice please.
He has seen a flat and made an offer of 154k which has been accepted
His situation is as such: He is on 32 k salary annually and earns £150 per week doing overtime.
He is on a work-permit and the date for the renewal of his work permit is 2015. He is employed on a permanent contract as a Registered Nurse.
He currently rents and he pays £850pcm.
He says he has a 10k deposit.
He has been to 1 bank (dunno which) and they have told him that he will need a 10% deposit i.e. 15k. if manages that, his monthly repayments would be abt £ 845.
He has also been to see a mortgage broke (not independent- works for one of the big EA firms and not the firm who marketed the flat). He was told that he could get a mortgage with 10 k deposit but his monthly repayments would be £945 pcm. I find this exorbitant and I whole heartedly believe he is being conned.
He asked me for advice and I told him what I thought and I also told him I know the perfect place to ask for advice. so here I am on his behalf. any chance of him succeeding in getting a mortgage with 10k deposit?
thanks in advance.
Friend of mine is after some advice please.
He has seen a flat and made an offer of 154k which has been accepted
His situation is as such: He is on 32 k salary annually and earns £150 per week doing overtime.
He is on a work-permit and the date for the renewal of his work permit is 2015. He is employed on a permanent contract as a Registered Nurse.
He currently rents and he pays £850pcm.
He says he has a 10k deposit.
He has been to 1 bank (dunno which) and they have told him that he will need a 10% deposit i.e. 15k. if manages that, his monthly repayments would be abt £ 845.
He has also been to see a mortgage broke (not independent- works for one of the big EA firms and not the firm who marketed the flat). He was told that he could get a mortgage with 10 k deposit but his monthly repayments would be £945 pcm. I find this exorbitant and I whole heartedly believe he is being conned.
He asked me for advice and I told him what I thought and I also told him I know the perfect place to ask for advice. so here I am on his behalf. any chance of him succeeding in getting a mortgage with 10k deposit?
thanks in advance.
0
Comments
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Putting down less than 10% deposit really limits what is available. The banks are taking a big risk there and so accordingly the rates are higher. So not only is he borrowing more money, he is borrowing it at a higher interest rate.
I have not checked whether it is reasonable or not, but its not in a brokers interest to choose a deal which is not the best for a number of reasons - on a practical level it means you could find a better deal elsewhere, on a compliant level we have to choose the best deal for the client.
Depending on the Estate Agent some of them are multi-tied - meaning they are not whole of market and do not have access to everything available. This means they may have just suggested what is the best available to them.
If you wait until Jan there are a few more 95% lenders coming to the market. I dont expect there will be a massive change on rates but you never know.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks ACG. Do you not think the fact that he is on a work permit is a problem?0
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Some lenders will have an issue but the odd lender will be fine with it i think.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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