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could we get a 210k mortgage?

(62 Posts)
bluearya Sat 19-Jan-13 16:07:37

Before i start dreaming could u tell me my chances of getting a 210k mortgage?

we have 55k for a deposit and DP gets 25K a year. I'm on maternity at the moment and don't plan on going back for a while but can always work some hours if we are pressed for cash.

At the moment we rent and pay 650 plus cc and bills without any problems.

So... any chance? Thanks

hpsaucy Sat 19-Jan-13 16:11:00

how much would the repayments be? 210k seems high, if income is only 25k.

MamaGeekChic Sat 19-Jan-13 16:11:27

Is the house worth £210k or the mortgage required £210k? In wither instance i'd expect the most you could borrow to be around 4times your salary.

LIZS Sat 19-Jan-13 16:12:00

you'd be looking at £900-1000 pcm even while interest rates are low. tbh I doubt any lender would go for it , sorry.

nulgirl Sat 19-Jan-13 16:12:46

£210k mortgage on a £25k salary? That's over 8 times his salary. There is no chance anyone will lend on those ratios. How could you even afford it? It would cost so much more than £650 per month to service that level of debt.

bluearya Sat 19-Jan-13 16:15:08

when i do the payment calculator online on my bank website, the repayments on a 35 year fixed rate are lower then 700£. So not a major difference. We could pay that.

But i read that the rule is 3 times your salary.

ByTheWay1 Sat 19-Jan-13 16:18:06

No one would lend on such a high multiple of salary, sorry........

FergusSingsTheBlues Sat 19-Jan-13 16:18:17

You are asking for a multiplier of 8 x salary. V v unrealistic. 100k tops based on dh salary alone. you have to be earning same salary to get that, and dont forget...the mortgage actually has to be paid!

Also, my mortgage is half that, and repayments are 600 pcm, so you are looking at in excess if 1k month easily for repayments.

Kendodd Sat 19-Jan-13 16:18:54

I would hope no bank would lean £210k on a £25k salary, it would seem irresponsible leading to me, sorry. I would look for something cheaper if I were you.

LIZS Sat 19-Jan-13 16:19:15

35 years - omg I was assuming 25 max. How old are you both ? Bearing in mind interest rates could rise considerably can you take that risk, even assuming any lender would . Also all maintenance etc falls to you.

AKissIsNotAContract Sat 19-Jan-13 16:19:37

I think it's very unlikely. We got a mortgage in June. I earn 50k and DP earns 28k and the most we could borrow was £135k.

You also need to think not only about whether you could afford the repayments now, but whether you can afford them if interest rates go up.

NorthernLurker Sat 19-Jan-13 16:25:14

Sorry no - I don't think you'll get it and I don't think you could pay it even if you did. Best plan is to work out what the repayments would be on 25 years of that loan (unless you are VERY young 35 years is too long). Then try sweeping that amount over your current rent in to savings. That way you'll boost your deposit and know what it's like to live on that. Don't forget paying stamp duty. Sounds like you're thinking of paying up to £265,000 - which will put you in to a higer stamp duty bracket than if you pay £249,999.

bluearya Sat 19-Jan-13 16:32:08

didn't explain correctly. the house is worth 210k we would "only" need 155k.
We r 30 and when i go back to full time (3 years) i will get around 20k.
I though it was too much but since the repayments r same as rent....
Ohh well we can wait, its just the house im talking about is perfect for us smile

LIZS Sat 19-Jan-13 16:37:33

You might be in with a shout when you go back to work but by then property prices could have risen.

NorthernLurker Sat 19-Jan-13 16:43:29

If you're 30 you do NOT want a 3d year mortgage. You would be paying up to retirement. I know a lot of people do that but seriously - give yourself a chance at a few years without that huge outgoing. I will be 56 when ours finishes and dh will be 57. That's plenty late enough for me.

DontmindifIdo Sat 19-Jan-13 17:02:14

oh I see, you need to borrow £155k on a £210k house... you might get lucky and find a lender, but they will hit you with higher rates because you need a high mulitple.

Is there any way you could get back to work part time earlier? Even if it's only for 6 months until you've got the mortgage agreed/saved a bit more deposit. Or is there any family help?

Houseprices in most of the country aren't going to go up any time soon, so if you need to wait a year or so to get a bigger deposit and/or higher salaries for your family, you should be able to find something similar for a similar price.

Also remember, if it's advertised for £210k, you probably could get it for more like £195k/£200...

AKissIsNotAContract Sat 19-Jan-13 17:23:05

If you have 55k for a deposit do you have something put aside for fees/stamp duty?

DontmindifIdo Sat 19-Jan-13 17:40:41

BTW - I'm impressed you've saved nearly double your DH's wage. That's impressive! I know a lot of people with much bigger incomes who've got nowhere near that amount saved.

LunaticFringe Sat 19-Jan-13 17:50:12

Message withdrawn at poster's request.

BlingBubbles Sat 19-Jan-13 18:34:24

You will be lucky to get a mortgage based on that salary, most lenders will only do X3 your salary and hardly anyone is doing 35 years, even if they were they would probably tie you in on a high fix rate.

Best thing to do is see a mortgage advisor they will be able to tell.

The bonus is that you have a big deposit, so that's good.

LunaticFringe Sat 19-Jan-13 18:43:25

Message withdrawn at poster's request.

GlaikitFizzog Sat 19-Jan-13 18:49:26

Most lenders firstly are going on the value of the property and then will only lend a % of that. Most are 80%, but they will then check out your affordability. Best thing to do is get independent financial advice and a mortgage agreement in principle. That's the best way to start IMHO.

Good luck though! I think you might just sneak in.

As a comparison our mortgage is just over 100k on 1.6something % rate and is just over £600 per month.

noviceoftheday Sat 19-Jan-13 18:59:17

I don't mean to sound mean but I would hope for your sake that a bank wouldn't lend you 155k based on 25k current household income. Its not affordable because there is no buffer against things going wrong. And, it is very easy for things to go wrong..

Groovee Sat 19-Jan-13 19:12:29

We're about to change mortgages and on a similar wage of your dh we are only allowed £90,000 as a mortgage which is fine as we're down to £60K now.

RCheshire Sat 19-Jan-13 19:21:08

I.assume (altho happy to be corrected) that the OP meant a 35yr loan work an initial 1, 2, 3, 5 or 10 yr fix. assuming it's not a lifetime fix you need to be checking you can afford payments at a higher rate, e.g. 6 or 7%. Also try not to go for a really long loan if at all possible - the total interest on a 35yr (even against a 25) it's grim reading

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