Do you think we'd get a mortgage?

heyjude2013

Hello,

We are looking to buy next year but before we saw a broker to go into full details I wanted to get an idea if this is workable?

Joint earnings : £55k basic but with commission/bonus on top about £65k.
Only debts £2.5k currently but this is being paid off so will only decrease!
Hoping to look for properties up to about £260k as we're in pricey South-East.
We would have 10% deposit.

Do you think this would be workable?

Thanks in advance.
HJ

glentoran99

Might be borderline depending on how the commission is allowed, What do online calculators say?

ACG

I agree, probably tight from an affordability point of view but I think it is the right side.

wjr4

We've just completed on a 260k house in the South East with a 5.2% deposit and earnings of approximately £53k (including overtime) with more debt than that so you should be fine!

heyjude2013

Thanks for the reply.

They have been mixed - the MSE estimates were not high enough but the nationwide calculator seemed ok at £260k.

heyjude2013

Oh thanks for the other replies! I cross posted.

Thanks rjw4 that is reassuring!

The affordability is frustrating as we currently pay £800 rent and save at least £800 a month too so we could definitely cover the repayments!

muhandis

A quick tip, my income when looking for a mortgage was made up of - 40% basic salary (fixed) + 10% quarterly bonus (variable) + 50% monthly commission (variable).

We maximised our borrowing and thus needed my commission and bonus to be taken into account to the maximum extent and through our broker eventually went with Nationwide as they were happy to take the average of the varying amounts paid over the last year (for quarterly bonus) and last quarter (for monthly commission) rather than the lowest (I think it was Santander) or 50% (other lenders) or none at all (quite a few lenders if commission is variable and not contractual).

I'm sure your broker will point you towards the lender appropriate to your circumstances.

EDIT: I see you've already mentioned that NW seems to be amenable to lending what you require. They're very good with commission and bonuses.

heyjude2013 wrote: »

Hello,

We are looking to buy next year but before we saw a broker to go into full details I wanted to get an idea if this is workable?

Joint earnings : £55k basic but with commission/bonus on top about £65k.
Only debts £2.5k currently but this is being paid off so will only decrease!
Hoping to look for properties up to about £260k as we're in pricey South-East.
We would have 10% deposit.

Do you think this would be workable?

Thanks in advance.
HJ

wjr4

We went with Nationwide because they would lend more. Halifax had a lower interest rate but would lend much less than we needed.

heyjude2013

Thank you everyone for the replies and tips!

Feeling much more positive that we can do this! Have been feeling that we'd never get there!

armchaireconomist

Hi, generally I've found the mortgage amount offered to me was 2-3x annual salary. Although I wouldn't trust the online estimations too much. TSB gave me an estimate of 90k then once i'd had an offer accept they decided they could only offer 50k (luckily Virgin saved me in the end). Good luck.