Mortgage help?

[confusedmouse]

Hi all,

Was wondering if there are any mortgage type people around who can help with a quick question?

Having a serious think about buying our first house now we have a decent deposit together. However I am getting so confused about mortgages.

Our friendly local broker says he can get us a mortgage of £177k, however when I used the mortgages calculators from the high street banks on their websites it always comes up as only allowing us £30-40k which seems ridiculously low seeing as between us we earn more than that in a year!

Can someone tell me where I'm going wrong here?

Quick details in case it helps...

Deposit - £40k
Earnings between us - £42k pa
Current debt - £8000 on one loan with a monthly repayment of approx £250.

Both have "excellent" credit ratings according to Experian (mine was bad but I've worked hard to recover it).

Can anyone shed any light on the vast differing amounts?

Have you disclosed the exact same information to your broker at to the online info?

I can't really answer your question but experienced similar. London and Country offered £180k in principal and about 9 months later a broker said we would get up to £240k. She had access to lots of mortgage companies with lots of products and did indeed secure us a mortgage (although we asked for £225k as we found a cheaper house). One of the main differences for us was childcare. Online calculators all factored that in, whereas our broker knew of several companies who didn't factor in childcare costs.

@MaverickSnoopy - thanks for replying, yes the broker had the same information as I've used, actually, at the time I asked him to search we had less of a deposit! I think I'm just going to ask him for an appointment and see if he can explain where he got his figures from and why my searches are coming back so low.

Are you not better settling the loan and having a smaller - big enough though - deposit? Pretty sure that would help a lot

We don't have time I'm afraid, our landlord is selling up and as such we have a time limit. Our intention was to wait another 4 years until the loan was settled and we owe nothing, but best laid plans and all that.

We don't want to go into renting another property as we pay below market value for this one (mates mates) and ultimately a monthly mortgage payment would be cheaper than a rental one.

Oh, I see what you mean, sorry! That is a consideration, however the deposit is largely an inheritance that is being (very kindly) advanced with the intention of funding a deposit so I'm not sure if that's possible. It's a good shout though so I'll see if that makes a difference.

I would check again with another mortgage calculator maybe? It sounds very low. We had similar earnings to yourself a 20k deposit and £3000 credit card bill and a car on finance and were still offered up to £160 from the bank.

It’s probably best to see the mortgage broker. By the sound of it, after tax, NI and pension contributions, you probably have around £2,700 per month? Even with the loan, you should be able to afford repayments on a mortgage of 100k + (unless you’ve got children or some other financial obligations).

It may be that the broker can get you the mortgage, however it will be at a ridiculously high rate?
Do you have children? How long are you looking to borrow over? How long ago was your credit file affected? Ignore that Experian tells you your credit score is excellent as it is largely irrelevant.

Sit down with the mortgage broker and he/she will explain.
Sounds to me like you've put something in wrong when you're looking online- you didn't put the loan as costing you £8000 a year? Or, is there something about your situation (recently changed jobs?) that the high street banks don't like, the broker will have access to other lenders.
Good luck OP I hope you get your house!