Interest Only Guarantor Mortgage

supercelt

I am applying for a guarantor mortgage through a mortgage broker which will be interest only. My income raises 70% of the mortgage and my parent's income covers the remaining 30%.

It's going to be 100% mortgage also.

The main problem and worry for me is that I will not be able to get the amount needed to purchase the flat. I've had an offer of £85,000 accepted and the survey is taking place today.

The next step is obtaining the mortgage.

I have an overall income of £16,500.

Loan: £127 per month with 59 payments left (yes, just taken the loan out).
Credit Card debt: £1700

Does anyone know if this will significantly reduce what I will be able to borrow.

70% of £85,000 is £59,500.

The mortgage broker told me that the bank will lend me as high as 4 x my salary with this type of mortgage which would equal around £66,000. My father would cover the remaining amount. His mortgage is paid off and financial situation is sound.

I have paid off two loans in the past, have a mobile phone bill which I always pay and pay at least the minimum payment every month with my credit card although often pay more. In saying that, I do spend one it a lot too so really reducing that debt will take some time. And every time I go into the bank they try to offer me more loans and "annual reviews". I was also told I could up my credit card limit from £2,500 to around £4,000.

I really want this flat and I know I can make the repayments. I've been renting for the last 6 months for around the same amount.

What do you make of my situation?

And would the mortgage broker shop around for me if he felt I wouldn't get with a specific bank. I'm worried I will not pass the credit check or won't be offered the amount of money I need to purchase the flat!

Thanks in advance. This forum is really helpful and I've read a lot of threads. That's probably why I'm so worried actually because I see obtaining a mortgage isn't very straightforward! Thanks!

P.S. I'm 20 years old if this matters.

dmg24

Please, please save up and get yourself a deposit. Pay off your credit card debt, and see if you can decrease the term of your loan (not always possible), and pay that off too.

You are in no hurry to buy. I would wait until you are in a better position financially.

supercelt

Just bumping this thread to the top.

Thanks!