Who will lend me £245,000

CONCHO_2

Help needed please.

Me & wife have seen a couple of properties, and are thinking of moving to a bigger house. Our current house is worth about £260,000 & our mortgage is for £114,000 and we have had further advances on it so in total we owe £130,000. We also have a personal loan for £25,000 (just started) So our total debt is £155,000. So if we sold our house for £260,000 we would have around £100,000 after all is paid off. The prices of properties we are looking at are around the £325,000 ish mark, So we could afford to put a deposit of around £80,000 & have £20,000 for costs, (est agent fees, stamp duty, Solicitors fees etc) So we would need to borrow around £245,000.
I earn around £29,000 & my wife earns around £22,000. On looking at a few BS websites I have found that most will lend us around £150,000 which is obviously not enough, so any idea who will lend me £245,000. I Have priced up how much it will cost each month on Chelsea BS & it comes to about £1400 per month which we can well afford as we have no kids. Are there any companies out there who will lend us this much.

Hope you can help, Cheers.

dwsjarcmcd

Sorry Concho but at nearly 5 x your joint salaries, I can't think of anyone who would do this. All lenders need to consider 2 particular issues - even if you forget risk, that have come in post regulation. These are affordability and responsible lending. While you say you can afford that amount, responsible lending will almost certainly rule this out.

davepugh1981

Nationwide (who base there mortages on affordability) would lend a maximum of £207000 if you have no outstanding debts.

Ember999

CONCHO wrote:

Help needed please.

Me & wife have seen a couple of properties, and are thinking of moving to a bigger house. Our current house is worth about £260,000 & our mortgage is for £114,000 and we have had further advances on it so in total we owe £130,000. We also have a personal loan for £25,000 (just started) So our total debt is £155,000. So if we sold our house for £260,000 we would have around £100,000 after all is paid off. The prices of properties we are looking at are around the £325,000 ish mark, So we could afford to put a deposit of around £80,000 & have £20,000 for costs, (est agent fees, stamp duty, Solicitors fees etc) So we would need to borrow around £245,000.
I earn around £29,000 & my wife earns around £22,000. On looking at a few BS websites I have found that most will lend us around £150,000 which is obviously not enough, so any idea who will lend me £245,000. I Have priced up how much it will cost each month on Chelsea BS & it comes to about £1400 per month which we can well afford as we have no kids. Are there any companies out there who will lend us this much.

Hope you can help, Cheers.

Whilst £51,000 is a good salary between the two of you, to want to borrow a £245,000 mortgage is sheer lunacy and I personally do not think you can afford a mortgage payment of £1,400 a month :eek: on that joint salary. It's sheer lunacy and the road to disaster. Think carefully before you even try to do this. What if mortgage rates go up? Fixed rates only last so long and to assume you could re-mortage to another lender on another fixed rate a few years after you bought is fraught with danger. If you struggle to get a mortage for that much first time around, what happens second time around? A rejection I would say. To lend you this much on your joint salary would be irresponsible lending and I can't see any building society/bank doing this.
Sorry for being negative, but you did ask!

margaretclare

Hi Ember

I'm glad you used the words 'sheer lunacy'. Those are the very words that popped unbidden into my brain when I saw this post.

I won't comment any more - I'd get into hot water!

Aunty Margaret

as400

If you can put down £80K deposit, you could just self cert your earnings to get the mortgage. If your happy your jobs are secure get a long term fixed rate and insure against sickness/redundancy....If you really want it go for it!

Dumbledore55

Why have you been putting further advances on your mortgage and why have you taken out a loan of £25K on top of that. It seems to me you're struggling already.

Why make it worse and to boot you'll lose £20K in fees - do you really need a different house or are you seeing it as a way of paying off your debts and starting again?

There's other ways to pay off your debts if you need to - this site can help you, its working for me - slowly but I am in control now.

DD

dwsjarcmcd

as400, doing self cert mortgages is for those who cannot prove their income, not for those who can but want to lie about it! Even here, self cert mortgages cost more, making the affordability issue worse.

Dumbledore55

As you've no kids - why do you need a bigger house?

If you really do need bigger, can yours be extended, cheaper than throwing away thousands on estate agents and solicitors fees and adds value to your property.

£1400 is an astronomical amount for a mortgage even on your joint wages

herbiesjp

Despite the pros and cons of whether OP should do it - there are lenders that would agree the loan - not self certifying mortgages I must add.

LouLouHelen

Dumbledore55 wrote:

As you've no kids - why do you need a bigger house?

I'm :eek: with you - more rooms to clean and higher monthly commitments!