Mortgages calculated not on earnings

joowan

Hi there - am new to this so apologies for not quite knowing the lingo...
I want to know if anyone knows of a mortgage company (probably non-high-street) who will lend money for a mortgage NOT on the basis of your earnings but on the basis of your credit rating. I have been paying £600 (or thereabouts) per month in rent without default for six years (along with all my other bills) and think that if these were payments to a mortgage, it would be a fair-sized one. Based on my earnings I wouldn't be able to get a high enough mortgage but think it's unfair as I can obviously pay out all this money reliably every month for rent - pls help, am desperate to get out of renting!!!

mitchaa

£600pm would get you about a £90k mortgage.

http://www.mortgages.co.uk/calculator/mortgage_calculator.html

(Based on 6.5%) It is highly unlikely you would get anything better than 6.5% with no deposit or ultra high product fee.

In some areas of the country, not even enough for a broom cupboard. Depends on where you are located in the country.

£90k in some areas may buy you a 2/3 bed flat/terraced home.

The answer to your original question, what is your annual income? I doubt any lender in todays climate will take your point into account.

AndrewSmith

All lenders will base their lending decision on the level of income you have and it's source.

You will not find anybody who will lend based solely on your credit rating.

Conrad

All lenders (apart from 2 with 12% rates) base lending upon income - they have to in order to meet the regulators 'treating customers fairly' and 'responsible lending' rules.

If you were repossessed a lawyer would argue you were a poor victim of irresponsible lending where a lender to have NOT taken account of your income level - and you would no doubt seek victims compensation.