45% debt to income

Jambo5

Does 45% debt to income apply to all mortgage schemes? Or is it just for the EL? Thanks

catieeb06

Are you trying for a Shared Equity property? Is it via the Help to Buy Equity Loan scheme?

If this is the case then no, lenders don't need the debt to income ratio to be 45% this is down to the Homes and Communities Agency who fund these schemes. If you can't pass that affordability test then there's no point looking for a mortgage as you won't be able to buy the property anyway.

Jambo5

At moment are debt to incomes probable 30%. But we have a car on finance and have 4k left over next 2 years but plan to pay that off early too.

If any thing I plan to use the Mortgage guarantee scheme. I wanted to know the percentage for that? With us have car finance I was worried it may hinder us.

I did ask this question in someone else's thread so I kinda hijacked it but got told in a round about way my question was not welcome as it was a different topic. I will have to read forum rules

justcat

Hi Jambo, you weren't told that it wasn't welcome, just that you asked the question without specifying that you were talking about the mortgage guarantee on an equity loan thread.

The 45% debt to income ratio is not something that the lenders themselves are requesting, it is the percentage that the HCA are using to assess affordability but only for the Equity Loan.

The mortgage guarantee scheme is just a 95% LTV product offered by some mortgage lenders. Each mortgage lender has a different affordability ratio.

Your best bet is to use a mortgage broker who will be able to work out which mortgage lender is best for you.

Jambo5

Cool. I didn#t mean not welcome as such. But I had to start a new tread to get the answer i wanted. Thats good though. Thanks