Moving home - higher mortgage

Rose999

We have just found our dream home where we could see ourselves staying for the rest of our lives. We agreed our own house for sale within 1 day of the board going up, put in our offer on the house we want and had it accepted.
We went to see our mortgage providor today to find that the most they will lend us is not enough and we will be £10000 short.

Our situation is as follows;

Our house has been agreed at the asking price of £120000. We have approx. £70000 outstanding on the loan.
The house we want to buy will cost us £168000. We would be putting down a deposit of approx. £48000 and therefore need a mortgage for £120000.
We had thought that we would go interest free for the 1st couple of years so that we could see where we were and then change to repayment as soon as possible.
From my main job I earn approx. £18000, My partner earns approx. £14000. I also do some mystery shopping and earn approx. £1000 - £2000 from this but it is not guarenteed.
We own outright half of my husband's mother's house. It is worth £900000.
The Nationwide would not take this into consideration as they said the loan would be secured against the house we are buying and this 2nd home would have no bearing on whether we could afford to keep up the payments on the mortgage. We are based in Northern Ireland.

My question is this; are there any lenders that will lend a bigger multipule of your salary? Is there anywhere we are going to get this mortgage or should we give up now?

Thanks for any help!

lestamunda

I would try for a self cert mortgage or try another lender - but ask if you will qualify before full app as they will do a credit search!

SnowyOwl_2

Hi

I'd suggest that you go and see a couple of independent financial advisers. I did this on my last property and found that they were able to find better deals than I could through my own efforts alone. You can also play one off against the other to try and encourage them to try a bit harder for better deals for you. They are usually found in estate agents offices (though I was in England when I bought my last place, so perhaps it is different over here).

Is there any other way you could raise it or part of it, eg sell some things, vehicles or whatever, or have any policies you could cash in?

Finally, I would just like to mention that if you have to overstretch yourselves in order to meet your mortgage repayments, especially if interest rates were to zoom up again, then this house would no longer be your dream house. It could turn out to be a nightmare if it were to cause financial hardship, or force a later retirement rather than an early one for you or your other half. Sorry am not usually such a misery guts...just thinking of the long term implications of stretching to find every penny.

Rose999

Thanks Jaghir and Snowy Owl for your replies. I know what you mean about mortgage rates perhaps shooting up and we have weighed up the risks. We do not have any outstanding credit cards, loans or store cards and have decided it is worth going for. What's the worst that can happen? We shall have to sell up and move to a smaller house.
Anyway, having looked at the Halifax online illustration, it seems that they may be able to help us. We have set it up so that they will call us back. Fingers crossed!
Thanks again! :beer:

NDK49

Being Northern Ireland based you could always try Progressive who in my experience were more than willing to consider all incomes and circumstances when deciding on the amount.

frepol

Rose999 wrote:

What's the worst that can happen? We shall have to sell up and move to a smaller house.

Negative equity, meaning big payment, unable to sell the house and ending up with it being repossessed.

D.A.

No offence, but I think you're absolutely nuts. My wife and I are on combined salaries of £53000 and we find it quite enough trying to pay our £50000 mortgage each month.

Chances are if the mortgage providers won't lend you the money, they're probably quite correct and *YOU CAN'T AFFORD IT*.

Your dreams don't always come true you know - welcome to the real world.

IvanOpinion

Many years ago the advice used to be do not spend more than 33-50% of your take home pay on your mortgage. When we first got married we actually spent 60% and it was a real struggle.

Rose a couple of things that you could consider.
- have you tried looking to elongate the term from 25 years to more (I am not sure if they still allow this, they talked about it for a while and some products became available but I haven't seen much about 30/40 year morgages
- have a look at some of the mortgage selection sites such as bradofrd&bingley, moneyextra etc. Put in your figures and see who is willing to make offers ... but be very aware of low start and other deferred products with tie-ins and large redemptions
- I have vague memories of seeing a site a while back where you put in your figures and mortgage companies would reply to you (basically you asked if anyone was willing to take it on). Sorry I can't remember where this was or how successful it was.

D.A. do you have other debts because 50K mortgage these days is nothing (about £275 per month - repayment) especially given your combined salary. Maybe you are not on a good product and are paying over the odds. I have always wondered how first time buyers spending £100K+ on a small semi manage it.

Having been through the repayment worry a couple of times it can be hard and you do need to weigh up very carefully whether the risk is worth it. Good luck.

Ivan

Rose999

Thank you all for your replies.
Thank you also to herbiesjp on the Mortgage board who has made the offer of his professional opinion. Perhaps we'll go ahead, perhaps not but we certainly need to weigh up all the options 1st.

PS - Ivan Opinion - I love your signature! Everytime I see a post by you, I have to re read it for a little giggle! :rotfl:
I know you are from Bangor (as am I) and often wonder if I have every passed you on Main Street or perhaps been behind you in the q in Tescos??
(I don't actually want to know cos that would blow the whole mystery of MSE)