How much of a mortgage could we get?

fairycakes

Hi there

I am going for a mortgage we will be second time buyers even tough we don't pay anything towards the other house and haven't for last 7 years!.

We have 5400 net between us a month (I haven't included children allowance
240 per month not sure if that's an income?)
Between the other mortgage, the new mortgage, one car loan and child care we would have 3300 outgoings per month. So that leave us with 2100 for everything else a month. Can anyone tell me is that enough left over? I know we are also saving so for example I am getting mileage allowance anywhere from 300 to 1000 per month and putting it into our mortgage savings will they consider that as an income?

Also can anyone tell me if you apply directly to a bank and they don't give you want you want can you go through a broker to the same bank? or do they keep your details on file?

We are hoping to get a house with purchase price 260,000. Any help with this appreciated!
Thanks!

Heres Johnny

fairycakes wrote: »

Hi there

I am going for a mortgage we will be second time buyers even tough we don't pay anything towards the other house and haven't for last 7 years!.

We have 5400 net between us a month (I haven't included children allowance
240 per month not sure if that's an income?)
Between the other mortgage, the new mortgage, one car loan and child care we would have 3300 outgoings per month. So that leave us with 2100 for everything else a month. Can anyone tell me is that enough left over? I know we are also saving so for example I am getting mileage allowance anywhere from 300 to 1000 per month and putting it into our mortgage savings will they consider that as an income?

Also can anyone tell me if you apply directly to a bank and they don't give you want you want can you go through a broker to the same bank? or do they keep your details on file?

We are hoping to get a house with purchase price 260,000. Any help with this appreciated!
Thanks!

5400 net or 2700 each to me says you are in the region of 40,000 euro income x 2 which is 80,000 joint income.
Enough to purchase a 260,000 House because you will have to pay a 52,000 deposit as second time buyers meaning mortgage will be 208,000.

When you say you haven't paid anything towards other house do you mean you are mortgage free for last 7 years? You then mention 2 mortgages when talking about your outgoings so I'm confused here.

Mileage expenses will not count as income. But as you said you are using them for deposit.

I think you're in strong position of there is no bad information missing from your post.

fairycakes

I am around the 38000 and my husband earns basic 45000 (but also earns bonus and shift allowance 25000 but not sure they count that!)
I own the house with my brother and he lives there with his family and pays the mortgage (can't get off the mortgage we have asked it's only starting to come back to market value now). I mentioned 2 mortgages because we have to pay the one we get and the previous one? is that right?
Sorry as you can see i am not a finance person at all trying to get head around it!

3DataModem

fairycakes wrote: »

I am around the 38000 and my husband earns basic 45000 (but also earns bonus and shift allowance 25000 but not sure they count that!)
I own the house with my brother and he lives there with his family and pays the mortgage (can't get off the mortgage we have asked it's only starting to come back to market value now). I mentioned 2 mortgages because we have to pay the one we get and the previous one? is that right?
Sorry as you can see i am not a finance person at all trying to get head around it!

The bank will take into account the fact that you are jointly liable for the other mortgage, even if you are not actually paying it.

phormium

On the calculations you are showing without a proper breakdown your fixed outgoings on debt plus childcare are well over 50% of you net monthly income. That's too much even if the overall lending comes under the salary multiple.

Lenders usually have a set amount of net monthly income that can be paid on debt including the new debt at stress tested rates (so not the actual payment but the payment plus whatever margin the lender is using as stress test), that amount of NMI is usually around 35/40%. I don't know if they include childcare as the equivalent of an actual debt repayment under this percentage.

There is no point going to a bank, being refused and going back through a broker to the same bank, the deals and underwriting are the same the only difference being that a broker might have been able to better package your non standard case as a proposal in the first place. Why not just go to a broker in the first place who may be able to advise on whether it's a runner or not and then which lender is the better bet, it may be the one you have in mind but there might be other options too.

The other mortgage will be taken into account even though you don't pay it but I would have thought that the amount your brother is paying each month is similar to having a tenant so that some proportion of that notional 'rental' income could be taken into account to go against the payments, that is where a broker could be able to help you with putting together a proposal.

fairycakes

Thanks for the tips! i might just go with a broker your right no point going straight to bank!