Insufficient Mortgage Quotes

Posted on 19 March 2011 by Rebecca smith

We currently have £125k left to pay on our mortgage. We wish to move to a new build house that will cost £183k and would like a mortgage of £125-130k. We have always payed our mortgage and other commitments and never missed a payment. I am starting my first job on 27th July earning £16k. My partner earns £52k per annum. Our credit card and loan outgoings are £900 per month. Our current mortgage repayments are £817 per month, so we can clearly afford a new mortgage where the repayments would be the same or less. Despite this we are having trouble getting a mortgage quote for £130k. Do you have any advice?


This looks like it is down to Lenders not taking your anticipated income into account. Whilst not extortionate the monthly credit outgoings eat up a lot of your partner's monthly income and there is insufficient left to cover the amount you wish to borrow. However, if you do include your salary then the amount they will lend jumps up considerably. This is because your income would completely cover the monthly credit payments and the whole of your partners salary can go towards the mortgage calculation.

The majority of high street lenders do not have the ability to include your income but there are other Lenders around who have the flexibility to look at your individual circumstances and make an underwriting assessment rather than relying on a computer. I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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