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mortgage

I am looking to remortgage, i owe 50k to bank 19 yrs left.house is worth 125k.
I would like to get a mortgage for 160k putting 70k down from my existing house only thing is i have very bad credit history.I earn 15.500 k per year

do you think i would get a mortgage for the remaing 90k?

Comments

  • You want to borrow 6 times your salary and have a bad credit history? I doubt it.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    You earn 15.5k a year and will bring home roughly 1k net from that. Have you worked out the mortgage payments on that?

    Do you have any other income - tax credits etc? I would think that you are going to struggle, especially with a lot of the subprime lenders really tightening the belts.

    A Nice Englishman - 6 times salary is feasible but not something I would be able to recommend and sleep comfortablly at night with.
    I am a Mortgage Adviser
    You 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.
  • homer_j wrote: »
    A Nice Englishman - 6 times salary is feasible but not something I would be able to recommend and sleep comfortablly at night with.

    Are there actually lenders who will do that for someone on £15K? I thought such multiples were only available for high earners whose 'fixed' expenses (food, energy etc) represented a relatively small proportion of their income keaving more to pay mortgage interest?
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    in short - yes. To be honest, I never ever go near that lender as often you are just losening the noose for a few months.

    Just done a quick calc - presuming no outgoings - 88571 would be lent based on a 15500 salary with no loans. 5.71X income!!!! So not quite 6 but is close enough!
    I am a Mortgage Adviser
    You 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.
  • MarkyMarkD
    MarkyMarkD Posts: 9,913 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Digiman

    You are NOT looking to remortgage. You are looking to move house and hence take out a new mortgage.

    Please don't say "remortgage" (especially as a thread title) when it's not what you mean.

    I would listen strongly to the advice from the others - you will struggle to afford anything like the repayments on a mortgage that big.

    Do you have a possible alternative to selling and moving up? The sheer transaction costs of doing what you propose will be large as you will incur stamp duty as well as selling/buying legal fees.
  • digiman97
    digiman97 Posts: 65 Forumite
    Part of the Furniture Combo Breaker
    Thanks for the replies,so if i put 70k down as a deposit i would be borrowing around 90k,hmm maybe i should re think my plan
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