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Quick question about mortgages
Former Member
Posts: 1,876,323 The Mix Honorary Guru
When determining how much they are prepared to lend you, do they go exclusively off the amount you personally earn, or do they take into account the amount your guarantor earns? Put simply if they use my income its unlikely I can afford anywhere, if they use my guarantors income its likely that I will get a decent mortgage.
I just don't know the ins and outs of the system you see.
I just don't know the ins and outs of the system you see.
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Got to get saving then! My guarantor could almost certainly get a 100% mortgage on a lower rate on his own so I didn't know if that benefit would carry over to me. Apparently not however
This article: how much can I borrow? might help you understand it all a bit better.
You could also check out the Money Saving Expert site - there is a mortgage calculator and loads of good info there:
http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator
Good luck!
Thanks Spanner
That would change things if that were the case. Basically my brother already has several houses on mortgages already so it wouldn't be a problem for him to be a guarantor / rock solid credit rating. The funny thing about mortgages is that it would cost the same for me to rent (less additional legal + maintenance expenses), but the amount I could borrow on my income would only cover a 25% - 50% shared ownership scheme which I honestly feel like are a con. So I can't 'afford' to buy, but I'm paying just as much by not buying! Doesn't make a huge amount of sense to me.
I hadn't really planned to buy ASAP to be honest but have been looking recently and renting is just a lot more expensive than buying and so I asked the question and my brother was fine being a guarantor if I needed one.
I agree with you that shared ownership ‘SO’ is something you want to avoid if you can, I could get one of those but really don’t see the point as you still have to pay rent on the percentage you do not own and more often than not SO is on large developments with high monthly service charges and a yearly ground rent, if you get a flat your better off in a small block with a small service charge.
What I don’t like about SO is that although it sounds good the amounts they quote youa re for 25 year mortgages and you do not want to end up with 25% in 25 years so the idea of ‘staircasing’ is not realisable for most people, to buy 25% in 7 years would make the mortgage too high!
I wanted to bring you attention to Nationwide as they have a ‘save to buy’ account which im saving towards at the moment, the catch is that for the first 3 or 4 years you pay a higher rate, but for example approx 130k at 5.7% is still only approx £825 pcm which is good in my opinion.
Read up on it at their website.
Good Luck.
I wish you luck with that, as you say, the more you can put down the better deal you get, but I will not be able to save 15+% so with the save to buy I can save for a approx 93% mortgage and I will not be buying a house (which i want) and it will not be in the area i want.
I aim to get a flat in an area not too bad but not too good, but it will be a start with a hope of moving in the future, for every year we save we spend about 10k on rent so I would be so happy to just own a place.
Best of luck...