jonathan100

Right long story short. My borther and i bought a house together about 18 months ago he has since moved out and bought a house with his girlfriend. We both put £102,500 cash into buying the house and it's now worth about 220k i would like to buy my brothers half off him and was wondering where i stand morgage wise. i would need a morgage for approx 110k. Will i have any prob getting this on an income of 15500 pa? If not would anyone know of a "ball park" monthy repayment figure?
Any advice greatly appreciated

ScoobyTal

110k on 15.5k salary are you joking !!

You have got alote of equity but a good rule of thumb is 3.5times your salary for mortgage.... but the banks will gladly give you anything you want (they win what ever !!!)

Payments on a 25 year approx 650 per month

god3

You will get it no probs, you have alot of equity. putting down more than 25% they wont even worry about the annual income

douglasb

Are you serious?

At 5.5% over 25 years you are looking at a monthly payment of around £675 to cover £110,000. At 6% you're looking at around £710 per month. Depending on the interest rate, that's between £8K and £8.5K per year.

On £15.5K then after tax and National Insurance there isn't a great deal more than £10K to play with. Whether or not anyone will lend the money, could you live on £200 per month to cover Council Tax, electricity, gas, food, etc.?

jonathan100

This is all based on my income alone. i live with my girlfriend so she would be paying half. but the morgage would have to be in my name because of her bad credit score (just finished uni. load etc to pay off) my house bills com to £300ish a month including council tax. so all in all i'm looking at needing about 1K a month

Think i need to think about moving

The Snug Rhino

not an issue to get it if you want, interest only you are looking around £5k pa.

douglasb

Jonathan - If you and your brother shared the house and he has now moved out, then I guess that you could rent out any spare bedrooms for extra income.

You can do this tax-free providing that the income is under something like £5K per year. There are other considerations such as the lodger needs to share things like the kitchen (to prevent you running a bed and breakfast business), but that might go a long way to paying for what you want.

jonathan100

Thanks mate but my sis already rents one of the rooms for £250 a month but she is going back to uni in september to retrain. Plus could not have strange people living in my house would just feel wrong.
I've just been on to the wight move web site and found some ok houses for 160k. but i just really don't want to move away from leamington. but saying that if i did have a 50k morgage i could aford to keep the scoob . Thanks for the help everyone,been a bit of a kick in the head but hey such is life how much can i sell a lung for?

hades

Realsitically there are plenty of places where you can get up to 4* salary mortgages, maybe 1 in 3 lenders go that far. Some places will go further, and perhaps 5* is acheivable if you have no debts etc, but that's cutting down your choice of deals big time.

You're more likely to get away with big income multipliers if you're earning more - e.g. I'm about to have a coventry mortgage, they do something like 3.6* below £20k pa, rising to I think 4.3* for more than £35k pa. To my mind, that makes sense from an affordability point of view.

plenty of on-line calculators for mortgage costs on various rates, repayment terms etc. If you're gong to stretch yourself lots inthe short term I'd seriously consider a 2-5 year fixed deal as there's a very real chance interest rates will go up, and it doesn't sound to me like you'll have much spare to cover that.

No idea of the going rate for lungs!

Notorious

mortgage

MattN

With 50% equity it will be easy to go self cert.