Maximum borrowing

lofti14

I am currently in a joint mortgage and we owe around 119000. We are splitting and the mortgage is going into my name alone. However I don't think I earn enough to continue borrowing 119000. Has anyone got any solutions. My credit rating is excellent and in the past have had 5 times my earnings (approx. 21000)

Thrugelmir

You may need to consider other options.

lofti14

that's why im on here. for other options other than selling. loan ect??

Annisele

The only options I can see are:

• You sell.
• You take out a new mortgage in your own name, possibly with a new lender (but given your earnings that sounds difficult).
• Your ex stays on the mortgage (which presumably they're not going to be happy about).
• You get cash from somewhere else to repay the mortgage (but if that was an option I doubt you'd have posted).

How much equity is in the property, and are you having to pay any of it to your ex?

lofti14

We paid 157,000 putting down 34,000 the house is now worth around 165000 - 170000. The issue lies with me only being able to get 5 times my earnings. Does any one no if 5.5 , 5.75 or even 6 times earnings are avaliable

lofti14

Oh and the ex and I have agreed on a sum of around 4k

amnblog

Have you someone who can act as a guarantor for you?

(A parent on a higher income than you, with minimal existing lending?)

Engagedtobaz

Lenders have tightened up. I think 4x is the max that they are offering at the moment. (could be wrong though).

I would say best option is to maybe sell and go for a cheaper property? Just my take on it.

Remember interest rates are predicted to rise and lending 5x would maybe stretch the budget if going it alone, should the rates escalate.

Thrugelmir

lofti14 wrote: »

Does any one no if 5.5 , 5.75 or even 6 times earnings are avaliable

With interest rates only heading way it's extremely unlikely.

The capping of income multiples is already a tool ready to cap prices rises should they continue unabated.