Daer all
My gross annual salry is 30,000 GBP and I am planing to apply for mortgage, I can put 10% deposit as well and I dont have any loan or credit card commitment with me. But the maximum some banks ar ewilling to offer me for mortgaeg is 135,000 with that I cannot buy even a studio in Lonodn. Although Halifax give 5 time of salry but not in my case as they say that I dont have any credit history because I never took a loan so my credit history is not built . I want to have at least 5 times of my salry if someone know which bank or housing society can give e 5 times with reasonable interest rate. I talked to some mortgage brokers but the intereet rates they offer are very high.
2006-10-23 02:04:37 · 13 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
This may sound cruel, but it isn't. These institutions are doing you a favour by not lending you the money. On your salary, repaying a loan of 150k will kill you. It will consume your salary, and leave you with practically nothing on which to live.
I'd strongly urge you to think about somewhere other than London. Millions of people have bought further out in the Home Counties, and commute daily. Yes, it's a grind; but you might be able to afford something out there. And as property values grow (as more people follow your lead) the value of your property will increase, allowing you to sell your property for a substantial profit that you can invest in another property in London.
I have friends who did just that. They purchased a "fixer-upper" in Peterborough for 75k. They made the necessary repairs -- lived in the house for four years, and then sold it for 165k. Imagine what a nice down-payment THAT pile made?
I think you should investigate something similar.
2006-10-23 02:19:25 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As an ex financial consultant I would strongly recommend you listen to Jack's advice - it's very sound and exactly the advice I would give to you too. However there may be one other way around the situation and that is the buy/rent scenario that is becoming extremely popular now and one certainly that many banks/building societies are willing to lend on - but you need to approach sellers or housing associations (more often it's the housing associations) with this suggestion....... what it will do for you is give you a foot on the property ladder, by starting the buying in process on a property .... you effectively part buy and part rent a property ... after a period of time (anything between 3 and five years) you then have the option, if you can affort it to either sell the property on and make your money (and hopefully some profit) back or to take a full mortgage out on the property .... many of these types of buys offer a more affordable way of buying a property but they do tie you in for a period of time - which if you look at it practically is at least as long as you would stay in a property before you sold it on anyway.....
Hope this was helpful, I wish you well, it's hard for 'new' people like you to get on the property ladder these days.....
2006-10-25 11:42:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think you would be very foolish to take out a mortgage which is higher than 3 times your annual salary.
Any good professional mortgage adviser would recommend the same limit.
You should consider renting in an inexpensive area for another couple of years and saving more towards a deposit.
2006-10-23 02:16:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Try talking to your bank to see what types of loans they offer. They may have loans for your household, but without any extra information that would be hard to guess. Ask various banks about thier community development loans if they have any and what income requirements they have.
As far as your credit history, ask your power, gas, phone and any other creditor for a payment history. If you had not been late on any of those it is possible that information could be used.
Not sure what is there in London, but hopefully this information will be helpful. (Good Luck)
2006-10-23 02:11:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You could also try Northern Rock, as they lend high multiples. Also, Natwest Bank and Royal Bank of Scotland. If you look at the Natwest site, they don't give a good calculation. However, the broker accesses a different site and they can give a high multiple.
2006-10-23 09:40:42 · answer #5 · answered by nemesis 5 · 0⤊ 0⤋
What can you afford alnog with taxes, insurance water, gas, electricity. All these things are factored in. You can get what you call a stated income loan. I make around the same as you and i just got approved for 379000.00 with no money down. The thich is your creditscore hase to be at least 620 and thats the middle score.
2006-10-23 05:46:50 · answer #6 · answered by Luckys Charm 4 · 0⤊ 0⤋
Halifax do a 90% self certification mortgage. That way you don;t have to tell them or prove how much you earn, just that you can afford the repayments.
They don;t advertise this type of mortgage though. speak to an independant financial adviser and get them to refer you. The IFA will be free so nothing to lose!!!!
2006-10-23 02:14:45 · answer #7 · answered by krakenchops 2 · 0⤊ 0⤋
If a broker can not find you what you are looking for you will not be able to get it. You will be able to get more money if you go on a self cert basis but the rate will be higher try and discuss that with a broker. good luck
2006-10-23 02:14:16 · answer #8 · answered by dizzymooo 4 · 0⤊ 0⤋
Speak to a Mortgage Advisor, you can do a self -certified.
2006-10-23 02:14:15 · answer #9 · answered by Chianti Man 4 · 1⤊ 0⤋
You will need to save some more, the more you put down the bigger mortgage you will get.
2006-10-23 02:12:53 · answer #10 · answered by Annie M 6 · 0⤊ 0⤋