Mortgage Question

[turquoise]

Hi there,

3 siblings are looking to buy a house together with the salary of:

A = £22,200
B = £21,114
C = £17,800

I know some mortgage lenders don't usually deal with 3 people in a mortgage, however, just for some advice, roughly, is it plausible to get a mortgage of £260,000 with the above salary to purchase a house costing £360,000. They already have a lump sum of £100,00 which they can pay as deposit.

I would be grateful for all your help and advice.

Many thanks in advance.

[factor-fiction]

It's a while since I tried to take out a mortgage but I be surprised if they'd be given a mortgage for £260000 in the circumstances. Even if the lender were to give 3 times the combined salary that would be well short of £260000

[TonyV]

will depend on mortgage provider - an independant mortgage advisor might be best deal

[turquoise]

whoops i meant £100,000 not £100,00.

[turquoise]

They've spoken to 2 financial advisers, one said they could only get £200,000 the other one said they would be able to get £260,000 :S

Then they called a bank and the bank said that they would be able to get a mortgage of £260,000 :S but banks would say wouldn't they.

[bednobs]

so why are you asking here then? What possible help will the answers be?
if i were to say "yes they can" how helpful would that be - i don't h£260000 to lend them
If i were to say "no they can't" would that stop them from going out and asking a REAL mortgage advisor (which incidentally costs nothing)

[TonyV]

You are looking at circa k£60 income so looking at 4.5 times earnings to raise K£260 - your will have to look hard to find a lender that will lend

[carrot99]

http://www.mortgageso...rs_how_much_cost.html

the above site shows how much a month they'd have to pay e.g £260,000 over 25 years at 4.75% would be c £1,500 per month. Do they intend to rent it out so that it pays for itself? I believe different rules apply for taking out mortgages on to let properties.

[ettelloc]

Hi Turquoise, i work in morgages for a well known bank and we would only take the first 2 incomes into account. If they have excellent credit ratings and no monthly commitments then they could lend close to £200k but i would say £260K would be over affordability. This is just one lender of course, others wil be different. The best thing would be to see a broker who could find you the best deal (but at a cost).

[turquoise]

Thanks Carrot and ettelloc!

They're not planning on renting the house. They have very good credit rating and they've never been in debt or have any debts.

I will pass this advice on. Many thanks for your answers.