Mortgages

mark2160p

Well-known Member
Hi I am looking to move to a bigger home, but struggling to find mortgages. Is there any companies that look at my affordability rather than multiplying my salary (which won't get me shed)

I went to my current mortgage provider HSBC but was astounded as they will only let me borrow 2k (incl paid equity)
 

HouseTonyStark

Well-known Member
standard assumption for mortgages is usually the salary scale i am afraid. they do also do an affordability check, so you may have some luck. try nationwide maybe..
 

mark2160p

Well-known Member
Just to confirm my situation:

2006 borrowed 160,000 @ fixed at 695pm
2009 went to variable down to 592pm
2010 overpaying to 725pm
2012 overpaying to 900pm

Because of overpaying I've paid roughly 30k off the 160k. Now to get a 30 yr mortgage of 185k it works at 830pm-860pm depending on rates. But soon as I put joint salary of 36k in, no one will lend me more than 135k incl my equity (assuming I get the same price as when I bought) that 165k? So no better off, even though I can comfortably pay?
 

mark2160p

Well-known Member
E-com said:
standard assumption for mortgages is usually the salary scale i am afraid. they do also do an affordability check, so you may have some luck. try nationwide maybe..

Cheers - I think i tried them, but get the website calculator. Might be worth doing it the old fashioned way - go to local branch for personal financial guidance.
 

booyaka

Moderator
Very doubtful - mortgage market has gone very very tight on lending since previous issues.

You'll struggle - even "self cert" mortgages have all but disappeared as well. It's never about affordability because circumstances change and they won't budge these days. Even with brokers trying to get deals you'll be very unlikely to find anything.
 

blue max

Distinguished Member
I tried to remortgage with HSBC and Nationwide. Both turned me down.

I have a mortgage worth about 15% of my property's value. 85% equity. Paid a mortgage for over 25 years and never missed a payment.

Neither bank would cover it and offered my half what I needed.

Married with two kids living at home. Think that is what sank me. So I'm stuck paying a variable rate that is too high. I have a split mortgage and some of it is ending this year, so I can't get a deal less than two years.

The banks screwed up and now nobody can borrow sensibly any more. Genius.
 

leo79

Well-known Member
I'm in the process of trying to remortgage due to moving house. Been with HSBC for 6 years have a LTV of 39% and they won't budge on lending us any additional money.
My biggest problem is I went from being self employed for 5 years to a limited company last year which has basically meant my accounts are back to being a new start up business.
I've had a meeting with a ifa who was recommended to me and he has managed to secure me 3 separate mortgages with different banks for the amount I want.
Interest rates are slightly higher but that's the way it is at the moment, nobody wants to lend money.
 

Liquid101

Distinguished Member
In the current market, you're highly unlikely to get 185k on a joint income of 36k - Just over 5x your income.

To be he honest, I'm surprised you're comfortable with your current payments of 900 a month. I'm assuming you don't have any children yet? :D




Just to confirm my situation:

2006 borrowed 160,000 @ fixed at 695pm
2009 went to variable down to 592pm
2010 overpaying to 725pm
2012 overpaying to 900pm

Because of overpaying I've paid roughly 30k off the 160k. Now to get a 30 yr mortgage of 185k it works at 830pm-860pm depending on rates. But soon as I put joint salary of 36k in, no one will lend me more than 135k incl my equity (assuming I get the same price as when I bought) that 165k? So no better off, even though I can comfortably pay?
 

Frostytouch

Active Member
mark1080p said:
Just to confirm my situation:

2006 borrowed 160,000 @ fixed at 695pm
2009 went to variable down to 592pm
2010 overpaying to 725pm
2012 overpaying to 900pm

Because of overpaying I've paid roughly 30k off the 160k. Now to get a 30 yr mortgage of 185k it works at 830pm-860pm depending on rates. But soon as I put joint salary of 36k in, no one will lend me more than 135k incl my equity (assuming I get the same price as when I bought) that 165k? So no better off, even though I can comfortably pay?

Not clear what loan to value you'd be looking for?

If you could borrow £185k, how much is the property you'd be purchasing, this is another huge consideration for lenders in these times?
 

blue max

Distinguished Member
I'm in the process of trying to remortgage due to moving house. Been with HSBC for 6 years have a LTV of 39% and they won't budge on lending us any additional money.
My biggest problem is I went from being self employed for 5 years to a limited company last year which has basically meant my accounts are back to being a new start up business.
I've had a meeting with a ifa who was recommended to me and he has managed to secure me 3 separate mortgages with different banks for the amount I want.
Interest rates are slightly higher but that's the way it is at the moment, nobody wants to lend money.

Yes, self-employed or limited company and they don't want to touch you with a bargepole unless you can show a huge growth pattern.
Got a job and no problem - even though you could lose it the next day.
Hard times to be sure.
 

mark2160p

Well-known Member
Hi - to answer the above the LTV is approx 85% based on:
30k (equity) + 180k loan for 3 bed house, which go for 210k in my area, looking at actual land registry. The above are rounded figures, but equates to 85% LTV

I do have an 11 month old son, so the joint salary is 26k for me and my wife works P/T at 10k.

Even paying 900pm we still live comfortably. Our net income after NI and tax is approx 2500 inc child tax credit.

900 for mtg
800 for bills
300 for food
150 petrol
50 car maintenance

[edit] we also put away £200 for savings. We do have 7,200 saved so far to cover (mostly cover): stamp duty, estate agents, solicitors, surveys, removals etc
 
Last edited:

Kristian

Well-known Member
As said above, Nationwide use affordability. Best of speaking to the local mortgage person in the branch.
 

Frostytouch

Active Member
mark1080p said:
Hi - to answer the above the LTV is approx 85% based on:
30k (equity) + 180k loan for 3 bed house, which go for 210k in my area, looking at actual land registry. The above are rounded figures, but equates to 85% LTV

I do have an 11 month old son, so the joint salary is 26k for me and my wife works P/T at 10k.

Even paying 900pm we still live comfortably. Our net income after NI and tax is approx 2500 inc child tax credit.

900 for mtg
800 for bills
300 for food
150 petrol
50 car maintenance

[edit] we also put away £200 for savings. We do have 7,200 saved so far to cover (mostly cover): stamp duty, estate agents, solicitors, surveys, removals etc

I thin LTV will make lenders picky but I hope you can get a deal sorted soon and get the new home.

What do you eat to just spend 300 per month on food for the family of 3? Nosey I know but that is not a lot of money.
 

Egg White

Distinguished Member
I thin LTV will make lenders picky but I hope you can get a deal sorted soon and get the new home.

What do you eat to just spend 300 per month on food for the family of 3? Nosey I know but that is not a lot of money.

I'd say it was good wholesome locally produced food - rather than the mass produced processed foods from the supermarkets... :smashin:
 

Lancia34

Distinguished Member
I'm kind of in the same situation - want to move to a bigger house but general mortgage quotes direct from banks limit what I can borrow so I can't afford much of an upgrade (even though I could afford the increase in mortgage payments).

What I have always done is go with a financial advisor as they have always been able to find a good deal and places where you can borrow more than the 3.5x your income.

Example - if I look at banks then the most they will lend me is around £235k. Through our FA he can get a mortgage where I can borrow more if I can afford to - £250k easy. This is with a LTV of around 85%

I know you can find these deals if you look around but saves so much time with an FA :smashin: It is a lot more difficult that it used to be :(

I think that I'll still hold off until the wife has a permanent job so that we can secure a decent sized mortgage (plus the other benefits)
 

mark2160p

Well-known Member
reiteration said:
I'd say it was good wholesome locally produced food - rather than the mass produced processed foods from the supermarkets... :smashin:

Actually for £300 its 4 weeks really as my wife does a big tesco shop every fortnight of 150-200. We buy a lot of frozen produce like mince, which makes chilli, Spag Bol, lasagne etc. we cook in bulk and freeze portions. We buy a lot of frozen vegatables too and also freeze bread too. Ironically if we move into a bigger home, i would invest in a chest freezer, to save even more. i cant stress how much you save by freezing portions. Things like pasta, rice, we just buy low value. The food for my son, is all fresh vegetables and keep him topped up with a big tub of actimel.
 
Last edited:

Frostytouch

Active Member
reiteration said:
I'd say it was good wholesome locally produced food - rather than the mass produced processed foods from the supermarkets... :smashin:

Odd answer as you're not the person who I asked?

He gave a great reply by the way, but your answer doesn't make sense? Surely that food would cost a whole load more than the cheap processed stuff??
 

Egg White

Distinguished Member
Odd answer as you're not the person who I asked?

He gave a great reply by the way, but your answer doesn't make sense? Surely that food would cost a whole load more than the cheap processed stuff??

well sorry for butting in :laugh:

no - raw ingredients nearly always cost less that ready meals etc... :smashin:
 

Egg White

Distinguished Member
my butchers are cheaper than the super market - or of a similar price...much better quality too...

as mentioned elsewhere on this forum - 6 slices of bacon for about 1.40 - nice and thick too
8 sausages from the local farmshop - 1.48 too - and the best sausages I've had...they're from bradley burn farmshop :)

but my main point was the fact that it is cheaper to buy the raw ingredients (i.e meat and veg etc) rather than buying ready meals and a whole raft of other processed foods...
 

blue max

Distinguished Member
my butchers are cheaper than the super market - or of a similar price...much better quality too...

as mentioned elsewhere on this forum - 6 slices of bacon for about 1.40 - nice and thick too
8 sausages from the local farmshop - 1.48 too - and the best sausages I've had...they're from bradley burn farmshop :)

but my main point was the fact that it is cheaper to buy the raw ingredients (i.e meat and veg etc) rather than buying ready meals and a whole raft of other processed foods...

My local butcher sells smoked back bacon and it is lovely. Not pumped full of water and more like boiled ham. However is is 50p a slice. Buying local (excluding supermarkets in this) can be either cheaper or more expensive. You can't draw any conclusions. Also buying a bit bag of spuds that sprout and go off is no cheaper than spending the same on a small bag and eating them all.
 

Egg White

Distinguished Member
true - but people do largely assume that it's cheaper to buy food in supermarkets...when in reality - they're just to lazy to go to individual shops etc...

anyway - this thread's about mortgages... :)
 

NorvernRob

Distinguished Member
mark1080p said:
Hi - to answer the above the LTV is approx 85% based on:
30k (equity) + 180k loan for 3 bed house, which go for 210k in my area, looking at actual land registry. The above are rounded figures, but equates to 85% LTV

I do have an 11 month old son, so the joint salary is 26k for me and my wife works P/T at 10k.

Even paying 900pm we still live comfortably. Our net income after NI and tax is approx 2500 inc child tax credit.

900 for mtg
800 for bills
300 for food
150 petrol
50 car maintenance

[edit] we also put away £200 for savings. We do have 7,200 saved so far to cover (mostly cover): stamp duty, estate agents, solicitors, surveys, removals etc

How come you get tax credits on an income of £36k? My sister and brother in law earn a very similar amount split virtually the same and can't get a penny so it's a genuine question.
 

The latest video from AVForums

Star Wars Andor, Woman King, more Star Trek 4K, Rings of Power & the latest TV, movies & 4K releases
Subscribe to our YouTube channel

Latest News

What's new on Netflix (UK) for October 2022
  • By Ian Collen
  • Published
Starzplay streaming service rebrands as Lionsgate+
  • By Andy Bassett
  • Published
JVC adds Filmmaker Mode to latest D-ILA projector firmware
  • By Andy Bassett
  • Published
Bowers & Wilkins launches Px8 headphone
  • By Andy Bassett
  • Published
Sky set to launch its plug-and-play Sky Stream solution
  • By Ian Collen
  • Published

Full fat HDMI teeshirts

Support AVForums with Patreon

Top Bottom