Posted on 14 February 2016 by Michael
We need a mortgage, my wife is 43 years old and has an income of £60,000 basic. I am 53 and earn £32,500 and receive £4,000 a year in pension. My wife is paying for a car lease at 445.00 a month and she has an additional 2 years of payments left. Is a 25 year mortgage possible?
Thank you for your question, via our ‘Ask the Expert’ section of our website. On the figures you have provided, you have a joint income of £96,500 and you require a mortgage of approximately £285,000 which is less than 4 times income- so this may be feasible on the details you have provided. However, the actual term of the new loan may be restricted by the age at wish you intend to retire, or your ability to continue servicing the loan into retirement if you should wish to do so. All lenders assess income and expenditure differently, so having the correct figures is imperative.
The payment of £455 will be used to assess overall affordability in addition to other expenditures you may have such as bills, travel and credit card repayments against your income. Looking at the figures, lenders typically would take the car loan and annualise the payment (multiply it by 12), and then deduct from your income. You might also want to look at using this opportunity to repay the car finance sooner rather than later.
To enable me to provide you with a definitive answer we would need your full financial details. Given all lenders use differing calculations to establish the amount of mortgage that are prepared to consider I recommend that you contact a consultant at John Charcol who will be able to recommend the most suitable lender based upon your individual circumstances.
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.