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Best mortgage

Last post Wed, Jul 08 2009, 8:16 PM by sparky76. 1 replies.
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  •  Sat, Jul 04 2009, 8:30 PM

    Best mortgage

    My daughter first time buyer wants to buy house but cannot afford it on own her pay is £21300, I have said I would buy with her pay £13995, the house is £110000,we have deposit of £16500, My present home has 3yrs left to go on morgage, I don't pay anything towards this my patner pays all bills, although my name is on the morgage. Would my daughter and i be able to get a morgage.

    • Post Points: 20
  •  Wed, Jul 08 2009, 8:16 PM

    Re: Best mortgage

    Hi there,

    I think it is possible, but not easy for you and your daughter to get a mortgage together.

    The 'problem' you will have is that you are already registered on a mortgage with your husband so you are associated with that debt, though as there are only 3 years more to go, you have some options.

    There are some newer mortgage deals available aimed at providing first time buyers with the opportunity to get a mortgage.

    These range from Shared Ownership (where you buy part of the property and rent the rest from an organisation, but can purchase the remainder when you have the funds) to a Parental Gaurantor mortgage which has some variations on you just acting as guarantors to actually having to put up significant funds to guarantee a shortfall (25% = 27500) on top of your deposit.

    The good news is you have a deposit and lenders look more favourably on this.

    Have a look on the net and this site for more articles on Shared Ownership and Guarantor loans / mortgages, and I would recoomend an Independant Financial Advisor who should be able to give you guidance on a range of products available to suit.

    For your daughter with the numbers provided you have

    110000 purchase price

    16500 deposit (15%)

    93500 mortgage (85%)

    However this requires a 4.39 multiple of your daughters salary this is where the difficulty will arise. It should still be possible.

    Some options are: (that you have probably already considered)

    Withdraw additional funds from your own house to top up the deposit (or from another source)

    Look to get the new property at a reduced price - sellers should be in a position negotiate more (down to 100K would reduce the mortgage multiple to under 4 (3.92) improving the chance of getting the mortgage.

    Good luck

    Sparky

    • Post Points: 5