Mortgage Application Queries - What would be classed as good?

Carlos007

Afternoon all,

Hope all is well.

I am after a bit of advise about borrowing more on my house for some home improvements. I've spoken to a mortgage advisor who advised affordability is an issue and given no other advise really which I was hoping for but hey ho.

I'll try to break things down without going on .

Current house value - £210K
Mortgage outstanding - £45K
Looking to borrow £100k over 30 years. Total mortgage £145K
Current mortgage payment is £460 a month but I over pay so £800 a month. 

I earn £26500 a year from my job.
3 children all under 6.
£200 a month child benefit for my three children.
Husband pays £1000 a month towards mortgage, household children etc.
Pristine credit rating.
Savings
£800 left to pay off a car loan. Which could be cleared if needs be. 
Pay my credit card off every month without fail. Last months bill was £850 (granted a little high but it was the Xmas bill). However, as always it gets paid off.
Council tax is £1650 a year

So when I applied to Nationwide (who my mortgage is with) they said I could borrow £17k tops. When I spoke to a mortgage advisor they said they wouldn't be able to do it due to affordability. I have only spoken to these two places so far.

I guess what I am wanting to know is how I can improve my chances of being able to get what I am after? Or is there certain banks / mortgage advisors I could speak to. When I have used the calculator on the Nationwide website to borrow it said I would be able to borrow up to 92K when adding in my income. The monthly payment is actually lower that what my current mortgage is at the moment which I can afford. Would lowering the amount I am asking for to say 60K help my case?

I understand my husband pays towards everything but when I have worked out the bills on my own I can afford it so unsure where I am coming stuck. 

Any advise would be appreciated. Or a mortgage advisor that I could speak to who would actually talk me through it all and how I could improve my chances of getting more. 

Thanks in advanced.

Edi81

You are asking for 5.5 times your salary with 3 dependents. 

Why is your husband not going on the mortgage? 

TheJP

Most lenders do not include child benefit as an income within their affordability criteria.

Carlos007

Thanks for the responses. Appreciated.

So we are seeing if we are able to get the home improvements done on our current house by borrowing in my own name and not adding him onto the mortgage so this would leave him free to be able to get another property in his name to use a rental / airB&B. We are thinking long term in regards to retirement etc and looking at the option of being able to get another property.

Would lowering the amount I am looking to borrow help with my case maybe? If I was to ask for say 3.5 - 4.5 my salary?

Thanks

Carlos007

Also, would a guarantor be an option? 

TheJP

So would your husband then come off the deeds of the current property? Also majority of lenders lean between 4-4.5 x salary. Even if you dropped the amount you want will still come out low. the nationwide calculator takes into account your income but at this stage likely doesn't look at affordability in detail hence why its so different.

The bank have said they would only lend £17k extra, that's a big indication of where you stand.

Neilos9

Buying a buy to let, does not stop your Husband going on the mortgage - if anything him not being on the Residential will stop him getting a Buy to let from 99% of lenders......
Go and see a broker, tell them what you want to achieve, and they will tell you how to do it.....