Anyone know somewhere you can get a mortgage based on affordability rather than salary?

[intergalacticwalrus]

We are currently paying just shy of 700 quid a month in rent, and we figure that based on repayments, that would be a fair old mortgage/ However, when we have enquired about them, we have been quoted a figure of 93k, which here in Bath (and the surrounding towns) wouldn't get you a pot to piss in (unless we want to move to a craphole in Bristol, which we don't particularly) so I was wondering if there are any places that actually look at it this way?

Northern Rock and Standard Life Bank both do affordability I think. But speak with an IFA who should be able to help with more options.

Yes we're in the same boat. most mortgage lenders take affordability into account when you go and talk to them!
as long as you can prove that you can actually afford it then it shouldn't be a problem...

Thanks guys. We will bear it in mind. When we went to the bank, we were seen by a real "computer says no" type

You deffo need to see an IFA - they have access to mortgages that you wouldn't as the average person on the street too. There are usually ways of getting more than is allowed on bare income multipliers (which imo are just downright stupid and certainly give us a mortgage much lower than we can actually afford to pay).

Message withdrawn

Abbey National do affordability-based mortgages. You have to look earnest and promise things though (like not eating for a year or 20).

One thing to consider in terms of affordability is that you will have some additional costs (building and life insurance, as well as repairs and maintenance). You do of course have to take account of the fact that we are experiencing very low interest rates at present. You can of course fix for a couple of years, you may need to facator in at what point it becomes not affordable.

£700 probably won't get you much more if you take the life cover/endowment policy/whatever into account. On interest only it might get you up to 150k, assuming interest rates don't rise.

£100k at 5.5% repayment over 25 years will cost £614 per month, and you'll have life insurance, building insurance and repairs etc on top.

£100k at 6.5% repayment over 25 years will cost £675.

our mortgage is based on affordability, through HSBC.

tiredemma how did you go about doing this through hsbc as dp and i would really like to own our own house instead of renting any info would help

when we set ours up with Abbey last year Dh was on a short term contract. They weren't bothered about that because we had equity in the house (ie borrowing much less than 100% of the value), all we had to do was show them a budget to say we could afford the repayments.

thats another problem no deposit either

No deposit could be a real stumbling block to negotiating a good deal, sorry.

i dont know- dp dealt with it all but i will ask him. we did have a deposit though.

my dear husband is an independent financial adviser with positive solutions you can email him at [email protected] for free advice he will point you in the right direction

good luck

by the way my husbands details i gave earlier - he is authorised and regulated by the FSA. And has access to over 200 lenders nationwide im sure that one or more of them would be able to help.