loan/mortgage question

[laam999]

hey, I got my mortgage offer accepted around Nov but the property wont be complete until around June which means I'll likely have to get another offer. the mortgage is only for about £62k and I was told i could get between £100-£120k but I personally think the repayments on these will be too much.

I have a loan of £1000 which will be payed off in Sept (it was to replace some stolen items) and is only around £90 a month to repay, I have this before I got accepted for a mortgage.

I earn approximately £22.5k a year in a permanent position i have been in for close to 2 years.

I'm wondering if anyone can give me any clues incase how badly a £3000 loan over 5 years will potentially affect my mortgage offer. this loan is to repair a and would actually save me money relative to keeping it stored untilled I can save up the money.

I'm just wondering on how you financial wizards view this. I'm pretty crap when it comes to money, and I have only ever had the one loan I have now.

thanks

Laam

[quotemehappy]

If you are going to apply for another AIP/mortgage they will take into consideration the additional borrowing.

Applying for lots of credit i'n a short period of time could be a negative against you when you are credit scored for the mortgage.

Could you not borrow it off friends/family or perhaps interest free CC for purchases and clear the balance once interest free period finishes?

[Sarnie]

laam999 said:

hey, I got my mortgage offer accepted around Nov but the property wont be complete until around June which means I'll likely have to get another offer. the mortgage is only for about £62k and I was told i could get between £100-£120k but I personally think the repayments on these will be too much.

I have a loan of £1000 which will be payed off in Sept (it was to replace some stolen items) and is only around £90 a month to repay, I have this before I got accepted for a mortgage.

I earn approximately £22.5k a year in a permanent position i have been in for close to 2 years.

I'm wondering if anyone can give me any clues incase how badly a £3000 loan over 5 years will potentially affect my mortgage offer. this loan is to repair a and would actually save me money relative to keeping it stored untilled I can save up the money.

I'm just wondering on how you financial wizards view this. I'm pretty crap when it comes to money, and I have only ever had the one loan I have now.

thanks

Laam

The way the underwriter will assess it, is to annualise the monthly payment and then deduct that figure from your annual salary.

For example:

A monthly payment of £200 pm is £2,400 a year.

They will deduct £2,400 from your £22.5k, leaving you £20,100.

The bottom line is that you should be more than ok based on those figures.

[jimslops]

Sarnie said:

The way the underwriter will assess it, is to annualise the monthly payment and then deduct that figure from your annual salary.

For example:

A monthly payment of £200 pm is £2,400 a year.

They will deduct £2,400 from your £22.5k, leaving you £20,100.

The bottom line is that you should be more than ok based on those figures.

People tend to talk in terms of 'gross salary', but he has not stated. Either way, he should be fine, depending on other outgoings...

[Sarnie]

jimslops said:

People tend to talk in terms of 'gross salary', but he has not stated. Either way, he should be fine, depending on other outgoings...

Who talks in terms of net salary?

[fandango_c]

Sarnie said:

Who talks in terms of net salary?

Not everyone is paid by a salary.

[Sarnie]

fandango_c said:

Not everyone is paid by a salary.

Of course, but the OP stated that he was 'in a permanent position for the last two years' which is the vast majority of cases indicates a salaried position.

[fandango_c]

Sarnie said:

Of course, but the OP stated that he was 'in a permanent position for the last two years' which is the vast majority of cases indicates a salaried position.

Fair point, I should learn to read.