Computer Says No - Mortgage
Discussion
We have been looking at moving, rates are low we have good stable jobs. Now is the time.
Found a nice place to buy and have an offer on the table for our place. Worst case scenario is we have around 100k to invest in the new property and are looking in the upper £400k pricing. So looking to borrow £375-400k, ideally I'd like a 75% LTV for the better rates.
We are both higher rate tax paye.
We can't borrow more than 350k it looks like as anything more is "unaffordable" according to the lending criteria. That is less than £2k a month, affordable on a single salary and less than 25% of take home. We don't have any other debt apart from a few K on Credit cards, all cars are paid for and no other outstanding loans. Only other major expense is childcare at £1500pm.
This is before any credit scoring has been done.
Any recommendations on brokers who can help and don't have a one size fits all computer model but actually look at the figures? I have no idea how anyone is buying anything more than a starter home with these lending rates.
Found a nice place to buy and have an offer on the table for our place. Worst case scenario is we have around 100k to invest in the new property and are looking in the upper £400k pricing. So looking to borrow £375-400k, ideally I'd like a 75% LTV for the better rates.
We are both higher rate tax paye.
We can't borrow more than 350k it looks like as anything more is "unaffordable" according to the lending criteria. That is less than £2k a month, affordable on a single salary and less than 25% of take home. We don't have any other debt apart from a few K on Credit cards, all cars are paid for and no other outstanding loans. Only other major expense is childcare at £1500pm.
This is before any credit scoring has been done.
Any recommendations on brokers who can help and don't have a one size fits all computer model but actually look at the figures? I have no idea how anyone is buying anything more than a starter home with these lending rates.
Cashflow mostly, wife has been off on maternity twice in the last 3 years with the sprogs and she was not the most careful with her money. The card stuff is interest free. No more kids now so we won't have any more gaping holes in the income.
It's not my business unfortunately I'm PAYE as is the Mrs.
It's not my business unfortunately I'm PAYE as is the Mrs.
Bullett said:
We have been looking at moving, rates are low we have good stable jobs. Now is the time.
Found a nice place to buy and have an offer on the table for our place. Worst case scenario is we have around 100k to invest in the new property and are looking in the upper £400k pricing. So looking to borrow £375-400k, ideally I'd like a 75% LTV for the better rates.
We are both higher rate tax paye.
We can't borrow more than 350k it looks like as anything more is "unaffordable" according to the lending criteria. That is less than £2k a month, affordable on a single salary and less than 25% of take home. We don't have any other debt apart from a few K on Credit cards, all cars are paid for and no other outstanding loans. Only other major expense is childcare at £1500pm.
This is before any credit scoring has been done.
Any recommendations on brokers who can help and don't have a one size fits all computer model but actually look at the figures? I have no idea how anyone is buying anything more than a starter home with these lending rates.
You have mail Found a nice place to buy and have an offer on the table for our place. Worst case scenario is we have around 100k to invest in the new property and are looking in the upper £400k pricing. So looking to borrow £375-400k, ideally I'd like a 75% LTV for the better rates.
We are both higher rate tax paye.
We can't borrow more than 350k it looks like as anything more is "unaffordable" according to the lending criteria. That is less than £2k a month, affordable on a single salary and less than 25% of take home. We don't have any other debt apart from a few K on Credit cards, all cars are paid for and no other outstanding loans. Only other major expense is childcare at £1500pm.
This is before any credit scoring has been done.
Any recommendations on brokers who can help and don't have a one size fits all computer model but actually look at the figures? I have no idea how anyone is buying anything more than a starter home with these lending rates.
Bullett said:
I have no idea how anyone is buying anything more than a starter home with these lending rates.
I've seen many people complaining it's hard to get credit at the moment. I'm currently in the process of buying a new house and have seen the exact opposite to you. Getting credit couldn't have been easier but then it's all about what category you fall into.My details are:
1) Full time PAYE for 13 years with just one change of job.
2) Paid off my previous 25 year mortgage in 12 years with 40% over payments every month.
3) 45% LTV and that's with us releasing some equity to spend on the new house. With a new valuation once the work has been done it should be about 35% LTV.
4) Less than 3 times income multiple.
Fixed with Nationwide at 3.89% for 5 years. We got in just in time because the same product is now 4.29%.
Maybe i've missed something, but i wouldn't expect any lender to >80% LTV, regardless of income especially in the current climate. Taking into account Stamp Duty and Other Costs (assume this isn't being paid out of savings) that's going to make high-400s a bit tricky. E.g. A 425k house costs about 445k and with a 100k deposit is already 77% LTV.
Edited by fido on Tuesday 17th April 21:41
swerni said:
fandango_c said:
The higher income tax rate is still 40%.
There is an "additional rate" for taxable income above 150k.
which logically would make 50% the higher rate tax (soon to be 45%) and the 40% the middle rate tax There is an "additional rate" for taxable income above 150k.
There is a marginal income tax rate of 60% on some income below 150k. Perhaps that should be the higher tax rate!
fido said:
Maybe i've missed something, but i wouldn't expect any lender to >80% LTV, regardless of income especially in the current climate.
Are you really saying that you wouldn't expect any lender to borrow above 80% in the current climate?Edited by fido on Tuesday 17th April 21:41
Even though there are High Street lenders doing 95%......
alock said:
I've seen many people complaining it's hard to get credit at the moment. I'm currently in the process of buying a new house and have seen the exact opposite to you. Getting credit couldn't have been easier but then it's all about what category you fall into.
My details are:
1) Full time PAYE for 13 years with just one change of job.
2) Paid off my previous 25 year mortgage in 12 years with 40% over payments every month.
3) 45% LTV and that's with us releasing some equity to spend on the new house. With a new valuation once the work has been done it should be about 35% LTV.
4) Less than 3 times income multiple.
Fixed with Nationwide at 3.89% for 5 years. We got in just in time because the same product is now 4.29%.
I've just fixed with RBS at 3.79% for five years with the ability to overpay 10% of mortgage each year. I was with nationwide previously but their restriction to overpay was bloody frustrating.My details are:
1) Full time PAYE for 13 years with just one change of job.
2) Paid off my previous 25 year mortgage in 12 years with 40% over payments every month.
3) 45% LTV and that's with us releasing some equity to spend on the new house. With a new valuation once the work has been done it should be about 35% LTV.
4) Less than 3 times income multiple.
Fixed with Nationwide at 3.89% for 5 years. We got in just in time because the same product is now 4.29%.
Chipper said:
I've just fixed with RBS at 3.79% for five years with the ability to overpay 10% of mortgage each year. I was with nationwide previously but their restriction to overpay was bloody frustrating.
We looked at that but with fees of £999 it has an effective rate of 4.2%. The nationwide only had fees of £99 so an effective rate of 4.1%.The nationwide restriction on overpayments is annoying but then we're going to be spending all our money on the house for the next few years.
Sarnie said:
fido said:
Maybe i've missed something, but i wouldn't expect any lender to >80% LTV, regardless of income especially in the current climate.
Are you really saying that you wouldn't expect any lender to borrow above 80% in the current climate?Edited by fido on Tuesday 17th April 21:41
Even though there are High Street lenders doing 95%......
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