How much can I borrow????

rtw123

Hi

Please could someone advise how much I can borrow on a mortgage?

My part time income= £14k
OH full time income = £27k
Total debt (car loans, credit card) = £12k

We have seen a house for £187k and have a deposit of around £63k so we are looking for a mortgage of around £124k. Do you think we would get a mortgage for this amount even though it is more than the 2.5 times joint salary?

Any help is greatly appreciated

Thanks!

herbiesjp

YOu will need to break down the debt slightly

What is the monthly amount you pay on the loans alone?

What is the balance you have in total for the credit cards alone?

You can easily get over 2.5times joint income however you will need to make deductions from your income for the two separate issue i.e loans and cards

rtw123

Hi

Thanks for the response

Debt is as follows:

OH Car Loan £115 per month £5.5k remaining
My car Loan £133 per month £4.5k remaining
Credit Card £1400 - about £50 per month (0%apr)
Argos storecard £200 - £25 per month (0%apr)
Next Directory £300 - £50 per month

Thanks!

herbiesjp

For the loans you need to make the following deduection (115+133) *12 = £2976

For the credit card balance of £1900, you could look at a 5% monthly repayment (although some lenders use less and some ignore) - so 5% would be £95

So total deductions from your income would be £41k less (£2976 + 95) = £37,929

At 66% loan to value, you are needing 3.3 times your joint income.

Assuming you have a good credit history, you should have the pick of the mortgage market

rtw123

Hi

Thanks for the reply Herbiesjp, appreciate it.

We have found a mortgage with The Cheshire and wanted opinions on whether this is a good deal? Fixed for 3ys at 5.75% with £899 arrangement fee, no extended tie-in. Seems to be the best fixed I can find at the moment.

Is this the lowest fix we can get do you think without paying a higher arrangement fee and being tied in after the 3 years?

Thanks again for any advice ;-)