Can I get a mortgage even though I have a loan?

kingstreet

Ah, right.

If an applicant takes out a loan specifically for a deposit, you will find some lenders will decline the application on that basis.

However, in this case, the loan is long-standing and the bulk of the deposit is from the joint applicant, not the OP.

I have however never come across the loan being deducted from the deposit as stated earlier, so was confused by that.

ViolaLass

I see, I over-extrapolated. Thank you for correcting me.

Another thought - presumably lenders will not accept "My ex gives me the money for this loan every month" since the ex could stop doing this whenever they please, so the OP would need to show that she can meet the loan payments from her own income?

kingstreet

Yes, it's her loan so she will be deemed to be paying it and nothing the former partner pays will be taken into consideration.

camcw

Can I ask, as a very rough guide, what is deemed to be a 'high multiple' of earnings when it comes to a mortgage? I know it will all very much depend on our specific circumstances but I'm completely new to this world so I have no idea what to expect. We would be looking at borrowing around 2.5x joint income and will have between 10% and 15% deposit.

Thanks for all your advice everyone.

kingstreet

Do not worry about income multiples.

Carry out affordability calculations on the online calculators of your preferred lender(s).