Mortgage for 1 x annual income

uncreative

All, just wondered if any brokers had experience of the following:

Combined salary of £107k for mortgage purposes (excludes bonus for me which can be up to £20k). Its me, wife and 3 kids. We have seen 2 properties in a slightly further out area than we are looking at as we have broadened the search as we are currently renting and the landlord has put the rent up again...


Property 1 is a 2 bed old style flat on the market for £125k. Would out £25k down and take out mortgage for £100k. No stamp duty! It has a smaller "study" that we could use as a 3rd bed for youngest but its only 6 ft by 5 ft so cant be called a bedroom for some reason.

Property 2 is a 3 bed cottage from 1930s, needs a fair bit of work and is quite far out but is still reasonable. price is the same and would look to take on £100k mortgage.

So, with that background, have brokers had affordability checks passed quickly when the mortgage is less than 1 times salary?

And, can a family of 5 take out a mortgage on a 2 bed?

libf

Try the online affordability calculators of a few lenders. Include all your outgoings.

Theres nothing to stop you buying a 2 bed but surely you'll only end up moving again soon as the smallest gets bigger?

uncreative

Yes but in say 3 to 5 years after still managing to save £30k per year we can buy somewhere else and keep the flat or cottage as a BTL which is the thought to buy somewhere at £125k as the ultimate rental yield will be acceptable of/when we rent it out in 3 to 5.

amnblog

I would not want to submit an application like this as I suspect you do not intend to live is the property as will a Lender.


Lenders are twitchy about residential mortgages being taken out on properties that may not be lived in. A broker putting forward such a case is damned by association.

getmore4less

Why not buy somewhere you actualy want to live in and can for longer and save up for a BTL seperately.

A nice offset mortgage to store the dosh ready to puchase later.

with £6kpm income say £2k for mortgage + the £20k bonus say £3500pm average

£200k mortgage over 25y @4% £1055pm
paying £3500 you will have offset after

1y £30k
2y £61k

enough to fund the deposit on another property.