will anyone lend us money in today's market??

gemmiegoatlegs

hubby and I are next time buyers. we have got 50K to put down on our next house and want to buy a house for 127K. This means we need to borrow 77K. My DH earns just over 15 grand a year and i am a student. I get tax credits and a grant that brings my income to around £6000 not including my student loan. We are seriously worried we won't be able to afford to buy, even though 8 months ago we had an AIP for 80K. The market seems to have changed so much in recent times we are concerned we will have to forget buying and rent for a few years until I am earning. This is not something we want to do as we have two young kids.


We know we could easily afford to pay c. £500 a month on mortgage payments. We have all the money for fees etc. in savings.

We have seen an IFA who has tried to "sneak us under the radar" for a fast track mortgage with the nationwide but they asked for prof of 2 salaries (obv can not provide, even though i can prove my income). The other option he has mentioned for us is to "self-certify" our income - he seems reluctant to do this for us and talked vaguely about higher interest rates and fees....


does anyone have any advice about how to go about this? We are very reliable and solvent, have good credit and no debts.


TIA

dunstonh

We have seen an IFA who has tried to "sneak us under the radar" for a fast track mortgage with the nationwide but they asked for prof of 2 salaries (obv can not provide, even though i can prove my income).

Why can you not supply payslips? If your husband is employed, he should be getting pay slips.

chappers

He can she can't as her income doesn't come from salary, but from grants and tax credits.

dunstonh

There would be documentation showing these grants and tax credits. Some lenders accept these, others do not. Obviously it is quite high risk using tax credits and grants to support a mortgage in case they change or you cease to qualify at a later date.

ajaxgeezer

True self-cert (AKA "liar loan", but who cares) here at 6.59 fixed for three years www.t-m-b.co.uk . That's about £530 a month if you did want to go the self-cert route. The options are there if you choose (or need) to take them, but they do indeed come with higher rates and fees usually.

gemmiegoatlegs

thanks for your replies.

i understand we would be considered "risky" compared to two salaried buyers, but surely the fact that we had 40%deposit would give the mortgage lender confidence that they could recover their loan if we failed to meet the repayments???

ajaxgeezer

It certainly won't do any harm but the lender will be following the rules to the letter in the current climate, and if the rules say they need to see this, that or t'other then that's what they will do I think.