Probability of getting a mortgage
Discussion
I wondering anybody could give me advice on the probability of getting a mortgage:
First time buyer - single applicant with guarantor
Mortgage of 4.15x proposor salary
Guarantor annual income of 0.66 mortgage amount
Proposor monthly scheduled outgoings currently 24% net monthly income including student loan payments
90% LTV
Can afford anything upto 9% interest but prefer less
Flat in London suburbs (not new build) at below market value
First time buyer - single applicant with guarantor
Mortgage of 4.15x proposor salary
Guarantor annual income of 0.66 mortgage amount
Proposor monthly scheduled outgoings currently 24% net monthly income including student loan payments
90% LTV
Can afford anything upto 9% interest but prefer less
Flat in London suburbs (not new build) at below market value
you may struggle with only a 10% deposit I'd be heading to your bank or other financial advisor and getting a decision in principal, as it will mean if they say yes you have something to show you can actually buy if you don't have a mortgage in place your offer isn't going to hold much water.
Thanks for the assistance all, the house has come about through contacts (look at profile) although on the financing side I mainly deal with commercial stuff and not the computer says mentality of resi finance.
From talks the situation seems to have changed to buying it with my girlfriend with the mortgage in joint names (with a contract detailing breakup situations etc.) and all costs split equally.
I was going to try and get the decision in principal first but was trying to get an indication of whether I would be accepted prior.
New situation:
Mortgage at 2.15x joint gross income and no guarantor although the same 90% LTV but both 1st time buyers...
From talks the situation seems to have changed to buying it with my girlfriend with the mortgage in joint names (with a contract detailing breakup situations etc.) and all costs split equally.
I was going to try and get the decision in principal first but was trying to get an indication of whether I would be accepted prior.
New situation:
Mortgage at 2.15x joint gross income and no guarantor although the same 90% LTV but both 1st time buyers...
- mods thanks for the move
Edited by kiethton on Wednesday 5th September 21:38
How much lower than "real" mkt value is it ?
If significant then you could look at buying it using an investor backed loan and then apply to high street lenders for a re-mortage which when taken against the " real" mkt value may be seen to be a lower LTV
Example...
Mkt value £114k, real price that it could be sold for, not similar advertised prices)
Your buy price £100k
Deposit £10k (plus cash to cover fees)
Loan needed £90k
When getting a mortage as a "new buyer' bank see this as a LTV of 90%, as they take the lower of the mkt value and buying price..so £90k versus £100k
When re-mortgaging they only use mkt value to go on (recent sales, plus local knowledge etc) LTV is now less than 80%...£90k over £114k
If significant then you could look at buying it using an investor backed loan and then apply to high street lenders for a re-mortage which when taken against the " real" mkt value may be seen to be a lower LTV
Example...
Mkt value £114k, real price that it could be sold for, not similar advertised prices)
Your buy price £100k
Deposit £10k (plus cash to cover fees)
Loan needed £90k
When getting a mortage as a "new buyer' bank see this as a LTV of 90%, as they take the lower of the mkt value and buying price..so £90k versus £100k
When re-mortgaging they only use mkt value to go on (recent sales, plus local knowledge etc) LTV is now less than 80%...£90k over £114k
qureshia said:
How much lower than "real" mkt value is it ?
If significant then you could look at buying it using an investor backed loan and then apply to high street lenders for a re-mortage which when taken against the " real" mkt value may be seen to be a lower LTV
Example...
Mkt value £114k, real price that it could be sold for, not similar advertised prices)
Your buy price £100k
Deposit £10k (plus cash to cover fees)
Loan needed £90k
When getting a mortage as a "new buyer' bank see this as a LTV of 90%, as they take the lower of the mkt value and buying price..so £90k versus £100k
When re-mortgaging they only use mkt value to go on (recent sales, plus local knowledge etc) LTV is now less than 80%...£90k over £114k
Most lenders won't remortgage a property for at least six months after purchase.If significant then you could look at buying it using an investor backed loan and then apply to high street lenders for a re-mortage which when taken against the " real" mkt value may be seen to be a lower LTV
Example...
Mkt value £114k, real price that it could be sold for, not similar advertised prices)
Your buy price £100k
Deposit £10k (plus cash to cover fees)
Loan needed £90k
When getting a mortage as a "new buyer' bank see this as a LTV of 90%, as they take the lower of the mkt value and buying price..so £90k versus £100k
When re-mortgaging they only use mkt value to go on (recent sales, plus local knowledge etc) LTV is now less than 80%...£90k over £114k
When you came to remortgage it, they would be able to see via the land registry that it was recently bought for the lower figure and therefore wouldn't upvalue it just because it was a remortgage rather than "new buyer".
If you and the gf are both grads you could look at this www.sharetobuy.com/britannia only hitch I've found is its only up to 350k at 10% LTV otherwise its seems a good deal
I am a graduate however my girlfriend isn't but has been in employment from 16 - on the job and NVQ's.
The upper limit shouldn't be much of an issue as the mortgaged amount we are looking for ATM is c. £115k + 10% deposit.
The only issue is the perspective purchase is a repossession but has 2 bedrooms, 10 min walk to the station in London zone 3 and has fully connected services which should mitigate this (not in a slum either). If rented post a minor refurb it would give a c. 10% rental yield.
The upper limit shouldn't be much of an issue as the mortgaged amount we are looking for ATM is c. £115k + 10% deposit.
The only issue is the perspective purchase is a repossession but has 2 bedrooms, 10 min walk to the station in London zone 3 and has fully connected services which should mitigate this (not in a slum either). If rented post a minor refurb it would give a c. 10% rental yield.
illmonkey said:
Crafty_ said:
x4 salary and 90% LTV might raise a few eyebrows ?
Probably best off in finance section.
My mortgage company said they'd do upto 5x joint salary @ 90%.Probably best off in finance section.
It was going to be 4x my single salary (parental guaranteed)
Now looking at 2.1x our joint salary (couple) which I hope shouldn't be too bad. Thankfully had a word with Sarnie, via the above and looks like it should be do-able.
We are viewing the flat in the morning so hope all looks good.
I've just been formally offered a mortgage and didn't have a single issue.
2 applicants, 10% deposit, mortgage at 3x annual income (well just under) not including annual bonus.
We both spent the last 9 months making sure our credit rating are squeaky clean and getting into the highest band on the credit score rating chart thing (you know what I mean...).
Speaking to our IFA about the possibility of getting rejected (because I was worried the same as you) she said that a lot of people are worrying about getting a mortgage but the reality is they just aren't giving mortgages out to everyone who applies now. Basically, if you're working, haven't got a stupid amount of debt and don't have any warning on your credit report all should be fine.
Best of luck!
2 applicants, 10% deposit, mortgage at 3x annual income (well just under) not including annual bonus.
We both spent the last 9 months making sure our credit rating are squeaky clean and getting into the highest band on the credit score rating chart thing (you know what I mean...).
Speaking to our IFA about the possibility of getting rejected (because I was worried the same as you) she said that a lot of people are worrying about getting a mortgage but the reality is they just aren't giving mortgages out to everyone who applies now. Basically, if you're working, haven't got a stupid amount of debt and don't have any warning on your credit report all should be fine.
Best of luck!
Sarnie said:
I can source you this mortgage tomorrow morning if you drop me a PM 
My mortgage is a very low tracker, and we're thinking of moving. My mortgage company will loan us a good amount, and I can do it direct with them. Is t worth using a IFA? Will they be able to extend the mortgage but with a better rate? I doubt I'll get the same rate again, it's also a life tracker.Sorry for hijack OP
illmonkey said:
My mortgage is a very low tracker, and we're thinking of moving. My mortgage company will loan us a good amount, and I can do it direct with them. Is t worth using a IFA? Will they be able to extend the mortgage but with a better rate? I doubt I'll get the same rate again, it's also a life tracker.
Sorry for hijack OP
If your on a very low rate (circa 2%) and your lender will allow you to port that product to the new property without issue, then it's always going to be best advice to do that.Sorry for hijack OP
However, your lender is likely to want to get you off that rate.....
Sarnie said:
illmonkey said:
My mortgage is a very low tracker, and we're thinking of moving. My mortgage company will loan us a good amount, and I can do it direct with them. Is t worth using a IFA? Will they be able to extend the mortgage but with a better rate? I doubt I'll get the same rate again, it's also a life tracker.
Sorry for hijack OP
If your on a very low rate (circa 2%) and your lender will allow you to port that product to the new property without issue, then it's always going to be best advice to do that.Sorry for hijack OP
However, your lender is likely to want to get you off that rate.....
They are happy to leave that sub-account at that, and just give us additional funds on a new (current) rate.
Thanks.
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