Mortgage needed with large deposit & low income

Leedsfan12

We have just sold our house & are wanting to move to a similar priced property but our mortgage lender ( for the last 20 years & 2 moves ) have turned us down due to affordability.
I am going to ring up a broker tomorrow but wanted to see what advice the forums could give.

My husband & I have had a mortgage with no problems for 26 years - 20 years with current lender. We have sold our house for £232k & have found one to buy for £235k. We currently owe £64k & we're hoping to borrow an extra £10k for moving & removal costs - £75k or so.
I earn approx £15,000 per annum & my husband is in the process of getting a job with an agency as we are moving 50 miles from current house. He is not currently earning. Our daughter lives with us. She is 17years & has Autism. We receive PIP of £310 for her every 4 weeks & she receives ESA of £75 per week.
Our outgoings are modest & we can totally afford our current mortgage - however on paper we fail to qualify. My husband will very probably have a job with an agency next week - ( paperwork has just come through this weekend with the Royal Mail ).
Hours are full time but not guaranteed - however there is a good chance he will get full time.
His mum ( 74 years ) has offered to guarantee our mortgage.
My sister & brother in law ( paid off their mortgage of £220k house ) have also offered to try & help regarding guaranteeing our mortgage.
Can anyone offer any words of wisdom regarding our borrowing. As mentioned at the beginning of post I will be contacting a broker in the morning but just wondered if there was anything anybody could offer in regards to my situation. I have been in my job 17 years btw & am 46yr, my hubby is 49yr.
Cheers.

csgohan4

15k income to borrow 75 k is a no go I'm afraid. Have a play around the mortgage calculators.


Generally can't borrow more than 4.5k times your income. Any debt will also reduce what they will lend you

AnotherJoe

Have you actually sold your house, or do you mean, you've accepted an offer? If the former, you're in big trouble.

AFAICS you are wanting to take out a £75k mortgage on a £15k single income other partner unemployed, which is why you've been bounced. Don't see how they can take your daughters payments into account especially as she's 17, do they change or stop at age 18?

Good luck with a broker, unless the guarantor route works, seems to me more likely you will need to wait a while until your husband has a full time position and a few months payslips reflecting that.

Leedsfan12

Morning, we've accepted an offer from 1st time buyers & the house we wish to purchase is not yet on the open market ( it's my sister's friends house - currently empty ). I believe my daughter's PIP money can be taken into account - I'm her appointee & it goes into my account. Her current award runs until 2019 I believe & due to her Asperger syndrome I doubt it will ever stop ( she has had DLA since 3years old - changed to PIP at age 16yrs ). We also have a Motability car as she receives the higher rate for mobility & for personal care. Thie Motability payment goes straight out of her award at source.
She is the reason we are moving - we are struggling with her & I have a large extended family in new location. Luckily we are moving from a small rural town to a city - so are hopeful he will find a job now our sale is going through. My husband has only been unemployed since Christmas - his last job required a large vehicle for delivery & our car was not going to pass MOT & as we were going to move we decided not to buy a new one & insure for another year.
ESA has only been claimed from the new year. She left education last June due to her extreme anxiety & I doubt she will return to any formal schooling. This is in her name but goes into my account. Is it possible to use this as her "rent". I don't want to sound like I'm trying to take all her money for my personal use - but as mentioned earlier we are moving to give her a better future & are having to purchase a detached house as she has several meltdowns mainly at bedtime - which is very stressful in our current semi detached house.
Sorry if I've rambled or not made myself clear 😊. There is also a very good chance my mother in law would lend us £20k so we'd only need £55k - but we'd rather not have to ask unless we have to.

AnotherJoe

This is in her name but goes into my account. Is it possible to use this as her "rent".
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Don't know. This is where a good broker would help, either to find a lender that will accept, or tell you what you need to do.

Another possibly, if your MIL would loan you £10-20k (dont forget moving costs that might be another £10k as well) then you could also see if you could port your mortgage to the new house which might not raise any affordability tests.

If you state who your lender is someone might know that, or you could of course just phone them up and ask about porting.

Good luck.

Dave_Ham

Some lenders will consider the additional income, although you have enough potential help from others which should see you across the line.

Best to have that chat with a broker and they lay can provide formal advice and hopefully an affordable solution.

Best of luck

audigex

What's the maximum you could borrow?

Could you borrow the difference from the family members you mentioned?

Leedsfan12

audigex wrote: »

What's the maximum you could borrow?

Could you borrow the difference from the family members you mentioned?

Not sure the maximum I could borrow as the Cumberland BS didn't want to offer me anything. Unfortunately on paper my outgoings cancel out most of my wages - as soon as my husband is working again this will not be the case. I'm lucky that I have family members in a position to help - but ideally we'd rather borrow on our own terms 😊.

csgohan4

Leedsfan12 wrote: »

Not sure the maximum I could borrow as the Cumberland BS didn't want to offer me anything. Unfortunately on paper my outgoings cancel out most of my wages - as soon as my husband is working again this will not be the case. I'm lucky that I have family members in a position to help - but ideally we'd rather borrow on our own terms ��.

IS it wise to buy a house on your current wages? Since you say yourself you don't have much left over.


I'm afraid lenders go on the Now not if.

Leedsfan12

csgohan4 wrote: »

IS it wise to buy a house on your current wages? Since you say yourself you don't have much left over.


We can totally afford a mortgage - even on my current part time wages. My husband will be working when we move & our new house is only £3k more than our offer on our current home. As mentioned in another post we are struggling with our daughter & her anxiety due to her Autism. We need to be nearer family who are desperate to help - she rarely leaves the house & is becoming more & more isolated. Ideally we should probably wait & get our finances in a better state - but this is not really an option. We have never missed a mortgage payment in 26 years & would never over stretch ourselves.

csgohan4

Leedsfan12 wrote: »

csgohan4 wrote: »

IS it wise to buy a house on your current wages? Since you say yourself you don't have much left over.


We can totally afford a mortgage - even on my current part time wages. My husband will be working when we move & our new house is only £3k more than our offer on our current home. As mentioned in another post we are struggling with our daughter & her anxiety due to her Autism. We need to be nearer family who are desperate to help - she rarely leaves the house & is becoming more & more isolated. Ideally we should probably wait & get our finances in a better state - but this is not really an option. We have never missed a mortgage payment in 26 years & would never over stretch ourselves.

Unfortunately the affordability calculators say different and lenders don't care about your home situation to be frank. While I emphasise with you, lenders only see what's on a piece of paper. If the numbers don't add up they won't lend