Is a mortgage possible in this case?

csgohan4

Alan_Cross wrote: »

As mentioned, he would have a deposit of c£100k. This would be made up of a £50k gift from us, his parents, and c£50k of his own, which is in turn partly the result of savings and partly an inheritance.


I take your 'shouldn't be a challenge' comment as just about meeting the thought of whether it would be possible. I still await ideas as to how much a £50-60k loan would cost him monthly.

it would be possible if income is x4.5 and covers that amount needed to be borrowed.

[Deleted User]

Alan_Cross wrote: »

As mentioned, he would have a deposit of c£100k. This would be made up of a £50k gift from us, his parents, and c£50k of his own, which is in turn partly the result of savings and partly an inheritance.


I take your 'shouldn't be a challenge' comment as just about meeting the thought of whether it would be possible. I still await ideas as to how much a £50-60k loan would cost him monthly.

Plug some numbers into the MSE mortgage calculators if you want to get some estimates.

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Alan_Cross

Lover_of_Lycra wrote: »

Plug some numbers into the MSE mortgage calculators if you want to get some estimates.

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Great but it asks immediately for an interest rate.


I have no idea what rates might be available to someone in his position.

[Deleted User]

Alan_Cross wrote: »

Great but it asks immediately for an interest rate.


I have no idea what rates might be available to someone in his position.

Either do we as no one has smet him. If he fits with high street lenders then he will be looking at under 2%. The interest rate shouldn't impact the affordability calculation in any way.

If you can tell us his income and commitments then you can get an answer. As it stands, if he earns around £15k or above he should be fine. He will still be able to have 25yrs+ mortgage.

People are trying to help but there just isnt enough information. Do you know what his income is?

Lungboy

Alan_Cross wrote: »

Great but it asks immediately for an interest rate.


I have no idea what rates might be available to someone in his position.

There's a drop down box that lets you change the calculator. Try the "how much can I borrow" option.

Once you know how much he might be able to borrow, plug that figure into https://www.moneysavingexpert.com/mortgages/best-buys/ to get an idea of interest rates.

jashdown

Unlike the US, interest rates tend not to be linked to individual circumstances aside from LTV.

Use the compare the market mortgage calculator. Plug in the figures and it will spit out his mortgage possibilities. As you say he is 40, the maximum term he will likely be able to get a mortgage for is 25 years. If he were to borrow 50K this should be more than affordable.

In context, many high street banks offer unsecured loans of £50,000 over up to 7 years. While interest rates are higher (3-10% typically) this could be an easier route potentially.

Alan_Cross

Deleted_User wrote: »

Either do we as no one has smet him. If he fits with high street lenders then he will be looking at under 2%. The interest rate shouldn't impact the affordability calculation in any way.

If you can tell us his income and commitments then you can get an answer. As it stands, if he earns around £15k or above he should be fine. He will still be able to have 25yrs+ mortgage.

People are trying to help but there just isnt enough information. Do you know what his income is?

I didn't realise that the monthly repayment could vary that much dependent on his income. Interesting. He certainly earns over £20k although I haven't asked him outright. What rate would be likely if he has to go elsewhere than the high street, then?

csgohan4

Alan_Cross wrote: »

I didn't realise that the monthly repayment could vary that much dependent on his income. Interesting. He certainly earns over £20k although I haven't asked him outright. What rate would be likely if he has to go elsewhere than the high street, then?

have a look at the mortgage best buys on the MSE and play around with it.

Failing that, a broker would your next step

Alan_Cross

Ok, thanks for the comments.


Will check in later today for any other thoughts.

MovingForwards

Non-high street rates are 3% +,
could be 5%+ depending on his financial circumstances eg adverse credit within the last six years.

Nothing to stop you having a look at the likes of Halifax, Aldermore, Barclays and seeing what interest rates they are currently offering.