Mortgage Help

money_bags_2

Can Any One Advise Me Please? At The Moment I Am Paying £365.00 Rent With Spare Cash Trying To Get A Mortgage, I Can Only Get 75k, Does Anyone Know Of Any Place Where I Can Get A Morgage For The Amount I Can Repay Rather Than 3.5 Times Your Annual Income That Way I Can Borry What I Can Afford to Repay
THANKS :j

meanmachine_2

money_bags wrote:

Can Any One Advise Me Please? At The Moment I Am Paying £365.00 Rent With Spare Cash Trying To Get A Mortgage, I Can Only Get 75k, Does Anyone Know Of Any Place Where I Can Get A Morgage For The Amount I Can Repay Rather Than 3.5 Times Your Annual Income That Way I Can Borry What I Can Afford to Repay
THANKS :j

You shouldn't have to borrow more than 3.5 times your salary. What will you do if int rates jump to 10%? Will you be able to afford the mortgage then?

If you're determined to pay silly prices for a house, then you can always get a "fast track" or self cert (lie-to-buy) mortgage.

What is your salary?
What are your monthly loan commitments?
What is the price of the property you have your eye on?

herbiesjp

there may well be a way to do this but it will depend on the figures you are looking at and whether you have other financial commitments i.e loans/debts

money_bags_2

just wanted to see how much i could borrow, paying rent is money down the drain, i am not going to pay silly prices sitting tight to see what happens, i earn from 18500-23000 1 loan at £310 finishes in jan

meanmachine_2

money_bags wrote:

just wanted to see how much i could borrow, paying rent is money down the drain, i am not going to pay silly prices sitting tight to see what happens, i earn from 18500-23000 1 loan at £310 finishes in jan

In a stable or even falling market paying rent isn't money down the drain. But let's not get into that, as it involves looking at comparisons between rental and property costs (plus maintenance repairs, buying fees blah blah).

OK, so £23 x 4.1 = £95K (ish), plus a deposit of around 10% and you're looking at £110K. Is that enough?

Or...you could lie to buy, borrow eight times your salary, say £180K, whack another 15% on top to qualify for a self cert and you've got £200K! Bingo! The home of your dreams.... (And a crippling mortgage). In fact you'd be paying around £1200 on a repayment, or £850 on an interest only.

How does that compare with your rent? Beware though, if int rates double, you'll be looking at £1800 a month.

Does that help? I think Abbey allow you to borrow 4.1x, but that loan will count against you. Herbie's the expert though...

money_bags_2

thanks meanmachine thats very helpfull does make you think tho as you say on a rented property no maint/ repairs blah blah, and u have the freedom of moving if u wish so at least your not stuck trying to sell a house, the market here in wales has really slowed up think i'll wait and see, or the other option is a self build which is very popular here and fairley cheap to build with local restrictions, ie u can only sell to locals, thats fine if u want to get back on the property ladder
thanks again