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Help please! Anyone know reputable places who will lend a decent mortgage amount!?

(31 Posts)
myjobismum Fri 19-Oct-12 18:09:10

I am gutted, we have got a decent deposit amount (£25k approx) ready and have found a house we like (£175k approx) but we cannot find anyone who will lend us the mortgage value we need of £150k sad sad sad
DH's wage isn't brilliant admittedly, though he works loads of hours - but it isn't too bad and we are happily managing to pay our £650 rent per month so could easily manage that on a mortgage payment too (I think anything up to £750per month repayment would be perfectly do-able!) we are young enough to spread it over 35 years and are debt free with great credit history.

Help!?! sad Anyone know any lenders who take all circumstance into consideration and look at true affordability? We are really upset!

ToothbrushThief Fri 19-Oct-12 18:13:08

Have you enquired what the repayment on £150k is?

I think you risk not being able to cover it if rates go up.

ToothbrushThief Fri 19-Oct-12 18:14:06

Financial advisor might be able to help you rather than individual companies?

Fairylea Fri 19-Oct-12 18:15:30

I'd be careful. You say your dh works lots of hours - is he paid hourly ? You need to look at his basic take home pay as extra hours shouldn't really be considered as they cannot be guaranteed even if they have been consistent till now.

With the economy as it is I really wouldn't over stretch yourselves.

AntoinetteCosway Fri 19-Oct-12 18:16:35

Our mortgage is for £116k and our repayments are approx £650 a month, so you may find it's because you wouldn't be able to afford the repayments as easily as you'd think with the not very nice interest rates available to people with low deposits...

Flojo1979 Fri 19-Oct-12 18:24:02

I really wanted to buy but then I realised actually at the moment I could rent a 3 bed house in a nice area, if I bought, I'd be lucky to be lent enough to buy a run down 2 bed place in a worse area and then still have extra costs like a boiler breaking down etc.
I'd be careful at the moment and sit tight.
If u can afford the rent easily as u say then why rock the boat?

myjobismum Fri 19-Oct-12 18:39:03

it is a 15% deposit we have - that isn't too bad - DH is salaried not hourly paid, so we are certain in what he earns every month, but he works loads of hours and doesnt get anything extra for them sad

We have had lots of quotes for repayments on 5 yr fixed rates and for the amount we borrow it is £650-£700 because we can repay over 35 years - we have been paying that in rent for the last 7 years so know we can manage it!

The £175k is for a lovely 3 bed house which has everything we need for us, our two children and baby on the way too - when we have to move to rented instead in the same area we are looking at £850-£900 per month <no exaggeration!>

They have said they will lend us £140k...... it just leaves us short by that £10k which is crucial as to whether we can do it or not sad

stumpymosha Fri 19-Oct-12 19:29:34

Have you looked into the mortgage plus a separate personal loan for £10,000? If you have a good credit rating, that loan would be less than £170 over 5 years.
This means you will be better off by £30 per month with the mortgage and loan, than you would be if you rented.
You need to make a really good list of all your expenses. Include absolutely everything. Even include silly things like packets of crisps, make up, cough syrup, holidays..... Work out how much you would spend over a year.
My husband and I did this when we applied for our mortgage with Cheltenham and Glocester. The mortgage adviser saw we had thought of every single eventuality and gave us well over the odds for our mortgage because we had evidence that we knew where every single penny was going and still had disposable income. Don't forget birthday gifts on your list. This is what swung it for us, she was just so impressed that we had taken into account the amount of money we would be spending on our friends as well as our personal expenses.

myjobismum Fri 19-Oct-12 20:10:30

Thank you Stumpy - that is really helpful! Sadly getting a loan would further affect the amount they will lend us so that isn't an option! However the total budget breakdown is a great idea, we will do that for sure smile

MrsN11 Fri 19-Oct-12 20:42:00

Have you tried with Natwest? They are one of the easiest banks to get a mortgage with on the high street, and also the mist generous too!
When we were in the midst of our mortgage application with HSBC & it suddenly went pear-shaped, we switched to Natwest & had no problems whatsoever.
If you go on their website (google natwest mortgage) they have a calculator which is able to provide an estimate as to how much they will lend you.
Good luck!

myjobismum Fri 19-Oct-12 20:45:09

Yes, have tried natwest, if we had no children we would have got the amount we need easily, same with Lloyds - but the dependants bring it down to the level which just puts us out of being able to get anything - it is such madness the difference £10k makes, it doenst seem that much more to ask confused

MontBlanc Fri 19-Oct-12 20:48:35

Have you tried a broker? Ours found us deals we couldn't find anywhere else. EAs often have in house ones you can use for free.

myjobismum Fri 19-Oct-12 20:56:39

We have and it has come back with an extra £5k i think, we need to contact another one and see if they can do any better I think!

Really I am not expecting anyone to find a solution for us, I just thought it was worth a shot in case anyone knew any secrets or info I had missed - it is really hard as 6months ago they said deposit depending they would give us the £150k and no we have the deposit it has all changed :/

Tizwozliz Fri 19-Oct-12 21:01:17

How well are houses selling in your location?

Any chance of making an offer and getting the house cheaper than expected? First time buyers puts you in an excellent bargaining position.

myjobismum Fri 19-Oct-12 21:35:39

We are hoping it will stay on for several months, giving us time to get more money together, a better deal, maybe DH could try and get some sort of payrise no matter how small, it would all help and well, then they would take lower offers - but well, we are not pinning our hopes on that - it is a lovely lovely house and a great price for the area we live so think it will be snapped up!

RonettePulaski Fri 19-Oct-12 21:49:09

Have you spoken to London & country mortgages, free mortgage brokers, we used them and they got us a better deal than we could find anywhere else. They're recommended by loneysavingexpert and the guardian

MontBlanc Fri 19-Oct-12 21:50:38

I really would offer what they can lend you as you never know. If it's only £10K off the asking price then that is a good offer and like Tiswozliz says you are in an excellent position.

myjobismum Fri 19-Oct-12 22:06:39

ronette - thank you, will look into those!

Montblanc - would love to, but our top offer would have already been £8k below asking price, but several houses in the same road have sold for around that price so we kno!w it would likely be accepted! So £18k under asking price seems too low to me

MontBlanc Fri 19-Oct-12 22:11:47

What have you got to lose though? They say no and you can go away and save up and hope it doesn't get sold.

Also how do you know what the other houses sold for? Have you been looking at the land registry? If so, that is a few months out of date so not entirely accurate, just depends what someone is willing to pay in the here and now...

Tizwozliz Fri 19-Oct-12 22:16:01

Think of it in percentage terms, 10% under asking is a perfectly acceptable offer in the current climate. Our first offer was 17.5k under asking (15% under), accepted offer was 14k under asking

wendybird77 Fri 19-Oct-12 22:43:53

We are in the process of buying a house for 18% under (£75K less than asking). Remember, asking is just what they would like, you can offer anything you think it is worth (or can afford). If they say no, then at least you tried!

myjobismum Sat 20-Oct-12 17:08:17

I know the house selling prices as we have been looking to buy for the last two years or so here, zoopla shows how much things sold for and gives you an idea of what they are currently worth! The thing is the current owners only bought this house 2.5yrs ago and they paid £168k for it so unlikely they will accept £165?!?! or is it still worth trying? Have things gone up or down or stabalized in that time do you think - they have put in a new kitchen, it is a lovely house!

forevergreek Sat 20-Oct-12 17:15:49

I would try and save some more. We were looking and they said they would prefer a 20-25% deposit. On top of that we would also be paying £1500 a month on mortgage.

How long would it take to save £5k more?

CommandoBlueberry Sat 20-Oct-12 17:24:45

When did other houses in that street sell at that price? Depending on what part of the country you are it could be that houses now are worth 40% of what their 2007 "values".

Houses in some areas have fallen in the last 2 years, significantly so. Frankly it's not your problem if they make a paper (or otherwise) loss.

When you sell a car, do you actually seriously expect the asking price?

CommandoBlueberry Sat 20-Oct-12 17:26:14

A couple of flags - you say they've only had it 2 years but within that time they've put a new kitchen in? They're "forced sellers" - make your offer a low one.

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