Urgent mortgage advice please

chriseeboy

Hi,

I'm urgently seeking the advice of a mortgage broker please.

I have been renting for over 10 years now and I have been given notice to quit on my house. The date to vacate is 30th November. I cannot afford to bu the house I rent.

I have been doing the rounds of EA's to look at 2 bedroom flats and have come across a suitable property owned by people working in Dubai and dabbled in the buy-to -let market and have caught a cold. The figures could nearly work out for me and if I can proceed I would like to make an offer.

The difficulty I am in is that I would be looking for a mortgage at about £133,000 on a purchase price of £140,000. I have funds of about £10,000 for deposit and fees. My problem is that based on multiples I can only get about £125,000 so I am looking for a 95% self cert. I have had fee charging brokers suggesting they could help but I hope to get some advice from some fellow site members.

I hope to move quickly a because I only have three months to complete and wish to make an offer next week.

Thanks for reading.

Chris.

herbiesjp

Are you employed or self employed?

What is your income?

chriseeboy

I am employed and have good history regarding employment, address and credit.

I earn £25,500 per annum

Thanks

Kez100

Can you afford the repayments on 133k?

chriseeboy

Hi,

I currently pay a monthly rent of £600 and after all other bills are met have spare income of £200 so I beleive I have some margin to work with.

My bank statements could provide proof of this.

Thanks.

Debt_Free_Chick

Some lenders give mortgages based on affordability rather than income multiples - Intelligent Finance, for example. Particularly useful if you have no debt.

herbiesjp

chriseeboy wrote: »

I am employed and have good history regarding employment, address and credit.

I earn £25,500 per annum

Thanks

In that case I do not see how a self cert mortgage would be of use to you unless you have other income streams?

YOu are right in saying that about £125k is what you could get - there may be one or two lenders that could be flexible enough to increase it a little (not sure if enough to get to £133k), but it will depend on your overall scenario, credit score, employment histroy etc.

chriseeboy

Thanks for the feedback and advice.

homer_j_3

if you were to get a rate of around 6% you would be hitting £800 p/m on a repayment basis. This will swallow you £600 rent and £200 margin.

There may be one lender who is High Street based that would go that far but you would need impecable credit and demonstrate through your bank accounts that you have the money to pay for it - i.e you are never in your overdraft and can demonstrate a good sign of money management.

That said it is often what you can afford and not borrow that determines the way and I would only strecth yourself that much if you think you can really afford. My salary calculator gives £1589 as an estimate of take home and your mortgage payment would be over 50% which is not a place I would want anybody to be to be fair.