Getting a mortgage in London

TBS2014

I am 27 years old, have a 40k deposit and a salary of £48000. I have seen a second hand property that is £275,000, which means I have roughly 13-14% deposit. However, I can't find a bank that will lend me enough to put an offer of the asking price (275,000 - 40,000 = 235,000). The most I have seen is £228,000.

What are my options here? - I can't use help2buy equity becuase it is not a new build, and I can't borrow more cash (that I can see)

Thanks

T

Bluebirdman_of_Alcathays

235k is 4.9 times salary - unlikely to find a lender that'll fund that, although have you used a whole of market broker? They might be able to help.


Earn more or buy with someone that also earns money are the obvious answers, probably not the ones you want to hear though.

ReadingTim

Speak to a whole of market broker if you haven't done so already - I've found those online 'how much can I borrow?' calculators pretty simplistic and pessimistic, but nearly 5 times salary might be pushing it: I got 4.6x over 27 years time time last year, but I don't know how near top end that was.

If you have then it's either save for a larger deposit, earn more, get a joint mortgage with a similarly high earning spouse, partner, friend etc, or compromise on the size or location (or both) of the property.

Appreciate you probably don't want to hear any of these answers though...

Ozzuk

I think you are likely pushing too far - have you tried a low ball offer? I earn a fair bit more than you, had a little smaller deposit (retaining funds to develop property after purchase) and the max mortgages were all around £210k.

Even if that kind of figure is offered originally once they do the affordability checks it often comes down. I'd set your sights lower or save bigger deposit - or as above, try a broker. Good luck!