Can we borrow enough money?

smudger123

First time poster so please be patient!!

We currently have a joint mortgage with Portman, which is fixed at 5.75%until April 2006 (early redemption figure is £5000), with £110k outstanding on our current property which is valued at £235,000.

Want to move to a new property within the next two months, which is marketed at £275,000, so need to borrow an additional £50k to cover all fees and the purchase, however because we only have a joint income of £45,000, Portman will not lend us enough money. :j

Could we get the additional £50,000 from someone else or would we be refused by all others as well? :j

We obviously feel we can meet the mortgage paymentsand the LTV is only 60%, but most lenders will only lend you 2.75 times your joint salary.

Obviously, in April next year I can remortgage the Portman amount, as interest rates are a lot lower now than when I took the mortgage out.

Additionally, we do own a flat on a buy-to-let mortgage with Natwest, which has £70k equity, if this would help us secure more money.

Any ideas on how to borrow the extra £50k to buy the new house, and then in April remortgage the whole £160,000, or should we just stay where we are?

Thanks

Woby_Tide

Nationwide, Halifax and A.N.Other banks(sorry not got names to top of my head) offer mortgages on 'affordability' which may well be enough for what you require, if you are confident you can afford repayments then may be your best bet

our figures were similar on amount we wanted comapred to wage a few years back and Northern Rock was a stickler for multiples but Nationwide allowed affordability which helped us out no end

payless

You are in a catch22 situation, as Portman will charge the fee if you leave, or not lend enough if you stay

Have you appealled , at 60% LTV lenders usually have some flex in criteria
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external finance is an option ( ask NatWest about that B2L) although if Portman may even want to restrict their lending if you are taking on additional finance


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Perhaps waiting until April would be cleaner, a WobyTide states other lenders use different methods

Fairdo_2

As the others state it can be achievable on affordability. I know this is an emotive subject, but is that poperty "the one" or could you wait until the start of next year to look again, so you could get past the £5,000 penalty by the time you complete?

Sure you've thought of it already, but £5K is a bitter pill to swallow.