On 19 Mar 2016 at 2:35pm Mortgage infuriation wrote:
Can anyone tell me why I can only get an agreement in principle on a mortgage for 65,000 when I have an above average salary, 10% deposit and only want to borrow 270000. What the f has happened to the mortgage industry. The AIP has not looked at my credit (which is good anyway) so that has nothing to do with it. Is it my age? Over 40 and a first time buyer? Any advice appreciated 
On 19 Mar 2016 at 3:40pm Belladonna wrote:
It could be the type of property you are buying, or the duration of the mortgage, or the fact that your sums don't add up ?
Deposit of 10pc on 65000 is 6500. You want to borrow 270000?? So where is the rest of the money coming from ?
On 19 Mar 2016 at 3:51pm Mortgage infuriation wrote:
No I mean that I have the 10% of 270k! Sorry if unclear...
On 19 Mar 2016 at 4:44pm Crystal Cleer wrote:
Because dear boy your 'above average salary ' would nowhere be enough to service a £243k mortgage when interest rates rise
On 19 Mar 2016 at 6:43pm Ghost of Maggie wrote:
Just rejoice and be thankful you haven't got 15% interest rates.
On 19 Mar 2016 at 7:44pm Old Malling wrote:
In the old days you could typically borrow 3.5 times your salary. So if you're earning around £70k you would have been fine. How much do you earn and what length of mortgage are you expecting?
On 19 Mar 2016 at 7:55pm Fake Sarah wrote:
A mortgage in principal is what you get until you actually need the mortgage I thought?
We got a mortgage in pricipal when we bought our house...
On 19 Mar 2016 at 9:16pm Jester wrote:
I assume you haven't actually spoken to a mortgage consultant/adviser? The reason I assume is that your directing this question at the questionable intelligence of the people who use this forum?! If this is to be the case, speak to your lender they will have all the answers you need. Also, shop around for the best mortgage deal. Don't settle for the first you see
On 20 Mar 2016 at 12:58am Webbo wrote:
Over 20,000 visitors a month read this forum
On 20 Mar 2016 at 7:22am Annette Curtin-Twitcher wrote:
Friends who have a combined income of £50k and equity of £50k in their current property can only borrow £170k if they move. They have childcare costs and their travel to work costs are fairly high, so they fall foul of the "affordability test".
It's a bit bonkers, because they already have a mortgage of £180k that they can afford. They have had to put off any thoughts of moving until their daughter starts school and their childcare becomes a lot cheaper.
If you have loans, credit cards, finance deals etc they will reduce the amount you can borrow. It may even be worth using some of your £30k deposit to reduce your overall indebtedness. If you have been spending all your income every month, that will reduce the amount you can borrow.
You don't say how much over 40 you are, but it's hard to get mortgages that won't be paid off by the time you are 65, although some lenders will lend on terms that will see the mortgage paid off by the time you are 70. The shorter the term, the higher the repayments, so when they apply the affordability test, you can't borrow as much.
If you have existing credit, get it paid off as quickly as possible. Spend 6 months living like a pauper to show that your outgoings are low. Look at moving your savings into a help to buy ISA so you get the government bonus. Consider shared ownership.
Best of all, get advice from a good mortgage adviser.
It seems to me that lenders have gone from one extreme to another, from reckless lending that tipped us into a financial crisis to going through everything you spend before telling you can't afford a mortgage where the repayments will be less than the rent you manage to pay every month.
On 20 Mar 2016 at 7:55am Mortgage infuritaion wrote:
Thanks ACT, that is really helpful if only for me to realise I am not going mad. I guess pre 2008 they would have been flinging it at me but I was a single mum back then and mortgages wer not on my mind. I have missed the boat I guess which is very depressing. I am probably at the older end of an entire generation who will not be able to get a mortgage and then I guess the whole thing will implode as there will be no one to buy houses! That will be another boat I miss due to my age. Renting forever then!
On 20 Mar 2016 at 5:32pm Rent boy wrote:
One thing about renting is the ability to move around should you need to move for work, and as the ghost said, maybe there will be a large rate rise in the next decade. You could plan to get a share in a retirement place in say, 20 years. Of course the downside is nothing to pass to offspring.
On 21 Mar 2016 at 7:06pm Ed Can Do wrote:
Good post by ACT although not entirely true with regards to other debt you already have. Whilst people like to talk about a credit rating, in the UK you have a credit score which is not how likely you are to afford more debt but in fact how much money a company will make if they lend you money. If you always pay your credit card off early, never go overdrawn and generally act in an entirely responsible fashion with your debt, your credit score will actually worsen and nobody will want to lend you money. Likewise if you default on debts nobody will want to lend you money as they'll never see any of it again. If however you run up interest on your credit cards, occasionally dip into an overdraft and incur the odd late fee but ultimately pay everything back then you are a dream customer for lenders and can expect people to chuck money at you.
On 21 Mar 2016 at 9:26pm Belladonna wrote:
True abt the credit rating
We found L&c mortgage brokers very good. They are based in Bristol but I arranged our current mortgage through them, getting a mortgage in principal agreed first.
I would also recommend first direct mortgages - very easy to set up, and probably the most helpful bank ever!