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Original poster

How easy/hard is it to get a 20/25% mortgage?

23 replies

katymac · 27/05/2017 19:19

As I only have temp work (so far) & DH is retired

Is it worth getting my mum to guarantee/act as guarantor for it?

We may have to rent until I have permanent work I guess

OP posts:

Bluntness100 · 27/05/2017 19:23

Your mortgage will be based on affordability and also how secure your income is. Speak to an advisor. If you don't have secure employment it's very unlikely uou will get a mortgage unless your husbands pension easily covers it, however his age could be a factor in preventing it.

In addition putting your mothers house up as security isn't ideal really. If you default you all lose your homes.

Original poster

katymac · 27/05/2017 19:26

Oh it wouldn't need to be her house - she has enough cash for it

Maybe I should try to borrow it from her - but I'd rather not

Is there an online affordability check type thing?

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thatstoast · 27/05/2017 19:30

Go to any banks website and they'll give you an indication of how much they'll lend.

However it's unlikely to be a yes if you're in a temp job, even if your mother offers to guarantee it.

Original poster

katymac · 27/05/2017 19:34

There is enough income with DH's pension for nearly twice what we'd need based on themoney advise service

& he isn't 65 until September so hopefully they'd give him a yr or 2 more by then I'd have work so could renegociate maybe

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thatstoast · 27/05/2017 19:41

They wouldn't accept the assumption that in 2 years you'll have permanent work.

The max term would probably be 10 years based on your DH's age so this may increase the payments and make affordability difficult.

Original poster

katymac · 27/05/2017 19:46

I ran it for 12 years so I wasn't far out

I guess I could put it on a credit card for a couple of years & mortgage when I get settled or maybe a short term loan off my mum with the intent to remortgage in 2/3 years & pay her back

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thatstoast · 27/05/2017 19:49

How much money are we talking about if you can put it on a credit card? I'm a bit confused.

DustyMaiden · 27/05/2017 19:52

You can get a non status or self certificate mortgage at that low. LTV, it wouldn't be a problem but higher interest rate

Original poster

katymac · 27/05/2017 19:52

Maybe £20 or £25 not as much as £35 I wouldn't have thought

Maybe split it between an unsecured loan & a credit card?

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Original poster

katymac · 27/05/2017 19:54

I think we will have about 200 (after all selling & buying costs) so I'm looking at up to 225/230 (making a lower offer at the top end)

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Original poster

katymac · 27/05/2017 19:55

Actuall it's only 10-15% I guess (shoudl do maths first!)

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PsychedelicSheep · 27/05/2017 19:57

They don't do guarantors anymore. I've just gone all through this with my dad. Your Mum would either have to go on the mortgage, which could be problematic depending on her age or lend you cash for the deposit. The second option is far more straightforward.

VeuveLilies · 27/05/2017 19:59

I'm really not sure what you are trying to do.
Do you already own a property outright and you're trying to raise funds? Repayments with DH's pension!

Original poster

katymac · 27/05/2017 20:02

We are selling our house (paid the existing mortgage off in March) - we thought it would take months/years to sell but it went through really quickly (I hope about to exchange)

We can't start looking until September & we are moving area, as my job prospects in a tiny village would be improved by living in a larger town

I will be working for the next 17/18 years but DH 'retires' in Sept when he hits 65 (bit arbitary really as he has been medically retired for 23 years - but the income source changes when he is 65)

We will need to rebuy

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VeuveLilies · 27/05/2017 20:03

Oh I see
You're trying to raise 20-30k

The ltv is small but it really depends on affordability.
Depends on whether they accept a pension as a salary and how your outgoings stack up against the income.
For that amount you could defintely consider loan/credit cards.

Original poster

katymac · 27/05/2017 20:06

The new places we are looking at are quite a bit more expensive that where we are even allowing for downsizing!

I think we will need a big shed!!

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AppleMagic · 27/05/2017 20:07

Speak to a broker. It sounds like you are a "good" risk, you just need to get past the "computer says no stage".

thatstoast · 27/05/2017 20:10

Ok so you have 200k and you want to borrow 20-25k to buy a more expensive house. I supposed you've already thought about buying a cheaper house?

Credit cards will be expensive. Personal loans will have similar, if not tighter lending rules. Mortgages may actually have a minimum advance which would exclude you before you even get started.

Sorry to sound negative, but obviously there's a few barriers for you.

Original poster

katymac · 27/05/2017 20:29

Looking for a cheaper house would be ideal - but I am struggling tbh

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BarbaraofSeville · 28/05/2017 08:07

If you fall foul of the minimum lending rules, you could borrow the minimum amount and get a mortgage that allows unlimited overpayments and repay the excess straight away.

Definitely speak to a broker. Try John Charcol online, if you don't have one you can visit. Based on the low percentage, the risk to the lender is minimal, especially if your DH has or will have pension income. Maybe also play with the term. If you get a relatively short mortgage, say 5 years, that may increase your choice regarding age restrictions for your DH, providing you can afford higher repayments of course.

erinaceus · 28/05/2017 08:12

I agree with speaking to a good broker to get past the "computer says no" stage. Set out your current circumstances on paper including deposit, income, ourgoings, amount you need to borrow, your details and your partner's details, and then give a broker a call.

I found London & Country helpful and astonishingly efficient.

TapStepBallChange · 28/05/2017 08:23

Talk to a broker, smaller lenders are generally better at looking at lending to older borrowers and considering retirement income etc. With a small LTV you might be able to do it, a longer term makes it more affordable.

Original poster

katymac · 28/05/2017 09:47

Hmm, so bizarely if I pay off all my other credit with my capital & borrow a tiny bit more it might be easier (don't worry I won't do anything without checking with a broker)

& we'll be staying with my mum after we sell this house should we try & sort out the mortgage before that happens will it be easier if we have a proper address?

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