first time buyer currently renting

Kel.n.e

ME and my partner are currently looking to buy a housewith a 5% deposit.

we have a house hold income of 35000, cureently pay £600 rent a month and are savings £400 plus a month, good credit scores, both have a credit card (nothing on them pay them off each month), and both have a small loan (monthly repayments £125 a month for 3 years)

weve been told we can only get a mortgage for 120000 but the house we are looking at is 150000.

how or what can we do to increase the amount we will be loaned for a mortgage? as we know we can afford more then what they are offereing.

csgohan4

Kel.n.e wrote: »

ME and my partner are currently looking to buy a housewith a 5% deposit.

we have a house hold income of 35000, cureently pay £600 rent a month and are savings £400 plus a month, good credit scores, both have a credit card (nothing on them pay them off each month), and both have a small loan (monthly repayments £125 a month for 3 years)

weve been told we can only get a mortgage for 120000 but the house we are looking at is 150000.

how or what can we do to increase the amount we will be loaned for a mortgage? as we know we can afford more then what they are offereing.

generally you can lend x4.5 of your income excluding debt/loans,


Your going to have to either lower your house budget or try and see what a broker can get you and match you to a lender

ACG

Who told you £120,000?
£150,000 is probably a little too high with £250 a month going out on loans. But there are a few things you can do such as extending the term, trying different lenders, maybe renegotiating the loans over a longer period to get the repayments down - but I would probably see how low the loans need to be to get you close to what you need before doing anything.

Kel.n.e

no its £125 for both loans, one is £75 a month small bank loan (3 years left) and £50 a month interest free dfs sofa(9 months left)

Thrugelmir

Have you opened HTB ISA's?

ACG

£150k might still be a touch high, but in around 3 month when that smaller loan has 6 months left to run there are lenders who will ignore it and you may start getting close at that point.