Mortgages - How much I can borrow - Internet vs Advisor

GinG

GinG

GinG

Soldato
Joined
22 Jul 2006
Posts
7,719
Hi all,

Looking to buy a house this year with the girlfriend. Looking online we could easily get around 200k according to the online stats.

We both need new cars...hers is falling to bits and in need of some welding & similar problems with mine.

If we were to both take out a loan (I am only looking at 4k) where she wants something £8-10k, this drops us down to around 160k ish mortgage.

This isn't so much of a problem as the house we would most likely buy is up @ £160k but we know we can get it for no more than £140k.

The question I am really trying to get at is...how accurate is the online calculators? I don't want to go out and buy the cars based on this only to find out then come mortgage agreement time it will nuke the amount we can borrow.

Affordability wise I will be no worse off, what I would save on fuel + me cuting back going out to the pub a week will easily pay the loan, however am I right in thinking they do not go on affordability any more??

Any feedback / help would be greatly appreciated! Also any mortgage advisors wanting to help please let me know and could get in touch!!
 
A mortgage advisor will ask if you have outstanding debt or borrowings, so yes, it's likely to affect the amount you borrow.

How much is dependant on where you go / who you speak to.
 
I know it will affect it, basically want to know how accurate the online calculators are?

Not suree if anyone on here has had the experience of checking online then going to get a mortgage to find they can get more/less than what was worked out using the online calculator?
 
You may be surprised at what you can actually borrow mate, best bet it so see a mortgage advisor, they take a LOT of things in to account for your monthly outgoings and may not offer you as much as you are hoping.
 
When yo go do they take in to account acctual outgoings now, or what the potential outgoings are when you move out?

Current fixed outgoings are £10 for phone, others include about £40 a week in fuel.

I guess they will ask how much I spend on clothes and various other stuff will they? In reality not much!!

Edit - also say I am saving between £800 - £1000 a month, this is more than the mortgage repayments anyway, this would show that it is possible to afford the mortgage? Especially when we have the gf's income on top?
 
Last edited:
I think at the moment, it will depend on how much of the house value you will need to borrow, i think you will need a good deposit. You need to go and speak to people in the know!

Outgoing tend to be contract phones, loans, anything on credit card etc.
 
GinG said:
If we were to both take out a loan (I am only looking at 4k) where she wants something £8-10k, this drops us down to around 160k ish mortgage.

This isn't so much of a problem as the house we would most likely buy is up @ £160k but we know we can get it for no more than £140k.
Click to expand...

Sounds like you have no deposit?
 
My gf and I are looking to get a place in a few months, and the way both online and brokers have calculated what we can get is gross annual salary, less gross outgoings for any loans and other debts, multiplied by 3.5

They have not asked us about stuff like phone bills, food outgoings, etc, just any debt that we have that needs to be cleared, such as my gf's student loan.
 
krooton said:
My gf and I are looking to get a place in a few months, and the way both online and brokers have calculated what we can get is gross annual salary, less gross outgoings for any loans and other debts, multiplied by 3.5

They have not asked us about stuff like phone bills, food outgoings, etc, just any debt that we have that needs to be cleared, such as my gf's student loan.
Click to expand...

Surely your gf's student loan shouldn't cause a big negative impact? Also is it 3.5 of your combined salary or do they cap the second contributor?
 
Wicksta said:
Sounds like you have no deposit?
Click to expand...

We are starting to save, should only take us about 6 months to get enough for a deposit (10%), just wiped out £5k of my savings paying off some stupid debt! So going all out to save for a house asap!

Just a bit of an annoyance with the cars being unreliable at the time we could have done without having no debt!!

Oh the joys for 1st time buyers!!
 
tell me about it, it isn't easy saving up 10k when paying rent, getting your car fixed etc. Trying to get a mortgage myself.

At this rate I need someone rich to die. :p

My advise is get the crappiest car possible, You can buy old bangers for a few hundred quid with a years MOT and tax = sorted. :D
 
GinG, 10% deposit might not be enough currently. Any mortgage you will get will be on rubbish rates with that. You should be aiming for 15-20% minimum, or joining a scheme like HomeBuy Direct.
 
You'll need 10%-15% for a deposit. Not sure about 10% - I managed to get a 4.09% discounted @ 10% but I believe that ended a few months ago (Britannia Exclusive).

You'll also need to bear in mind all the associated costs with moving - stamp duty, legal fees, land registry, removals, redecorating, then all your new bills such as council tax, heating, electricity, water, home insurance, life assurance etc.

If you don't even have a deposit saved just now I'd say you need to get saving before you even think about mortgages, by the time you've saved enough for a 15% deposit and your stamp duty & legal fees, the mortgages rates may be very different.
 
Good advice jamie.

Try looking at the homebuy direct scheme, it's limited as to the places you can buy, but I've just bought my first place through there (waiting for the final nod) and they only require 5% deposit of the total cost of your mortgage - which is 70% of the house value.

Complicated, but look into it if you really want out.
 
Cheers guys, no where round here has a homebuy scheme sadly, however I would jump at the chance!

The house we are looking at is acctually the gf's parents who are getting divorced, trying to get it for as low as possible! What is the current stamp duty threshold?

10% deposit will get us on the ladder, but at a high rate of interest! As for affordability my wage alone would cover everything with a bit left over, leaving the gf's to save / spend / gamble etc etc.....

Redecorating will be a bit of an issue, however my parents will help out a bit and as will other memeber of the family, my only concern/anoyance is the fact we need to wait to get the deposit saved!!
 
Spent 2 hours speaking to a mortgage advisor at the weekend, 10% will get you a mortgage fixed for 5 years at a fairly garbage rate, but it's only about £40/month higher than decent rates on a £115K mortgage over 25 years. You can also move after those 5 years are up, or earlier if you accept the penalty fees. Bare in mind that's essentially saying you won't get Sky for 5 years, no biggie for most folks!

10% is enough but remember you will have to cover moving costs, arrangement fees, solicitors fees which a ballpark figure for would be around £1500 for most people above their deposit.
 
Crizzy said:
Surely your gf's student loan shouldn't cause a big negative impact? Also is it 3.5 of your combined salary or do they cap the second contributor?
Click to expand...

They deduct any outstanding debt from your multiplied salary before giving the final mortgage amount.

I don't know about joint applications, my IVA means I'm not actually going to be on this from the start, just contributing towards it for 3 years until my IVA is cleared and my credit history is reset.
 
You must log in or register to reply here.
Back
Top Bottom