we already own our own house and have a £15000 deposit for our next house and combined income of £34000 - how much can we borrow?
If you are going to rent out the 2nd property then most Buy to Let mortgages require a 75% Loan to Value (LTV) although a few lenders will go as far as 80% LTV which means a purchase price of £75000 would be the max. This will also depend upon the rental value of the property as well.
I would be happy to discuss this further with you if you wish to get in touch?
firstname.lastname@example.org | 03.01.12 @ 19:11
you haven't really given enough information for anyone to give you a clear answer and although i wouldnt suggest you disclose all your personal details on this forum (rather than say emailing directly), a lender will want to know:
what is happening with your current home?
if you are letting it out, some will insist that you can evidence a tenancy agreement and the first month of rent before you can apply to them on your new home mortgage (this means moving out first!)
some will allow it but without proof of rent they will deduct the mortgage cost from your income and reduce your new loan limit accordingly.
we dont know if you have other financial commitments such as loans or credit card balances as all lenders require full disclosure of current debt even when it will be paid off otherwise they will assume its all being kept (and will reduce your loan on the new home)
lenders now tend to use affordability models on determining loan limits which means that your normal household spending will impact on the loan limit as will the number of children you might have.
you could broadly assume 3x joint income but this could end up being more or less than a lender will finally offer for all the reasons above. higher income multiples will tend to apply to higher starting income amounts. lenders tend to cap loans for home movers at a maximum of 90% and even then, the rates are not the best.
feel free to get in touch for more assistance but you will need to be prepared to share more details to get a reliable answer. | 03.01.12 @ 20:26
Please contact me to discuss
Regards - Graham
email@example.com | 03.01.12 @ 21:57
Hi Ms. Laura!! I think "how much you get" depends on "what you want to do"? If you want to move into the new house then the present house's rent would be good enough to support your existing mortgage. If that's not enough then the lender will take is an expense in your monthly outgoings. In this case you need a deposit of minimum 10% (not taking into account your present circumstances, credit history, credit commitments etc. etc.). If you don't want to move from your present house, then you need a minimum deposit of 20% for your scenario. There is a buy to let product with 15% deposit but its for experienced landlords so doesn't fit you. Kindly contact me on my cell # 07545321393 for further discussions. Regards | 04.06.12 @ 10:50