We need to get 90% of £297,500 on a joint income of £69,000. Will we be able to get the mortgage we need ?

Posted on 12 October 2015 by Annabelle

My partner and I are looking to get a mortgage for a house costing £297,500. We have a deposit of £30,000. He owns his own barbers business of over 10 years and I work for a pharmaceutical company, both our incomes combined equal £69,000 so would this be enough to get a mortgage? The only issue is we have a car on lease for £250 a month and a credit card of £6000 that has never received a late payment and is interest free. Would this affect our chance? 

At 90% Loan to Value for most lenders it will be down to whether you pass their credit score, and at a high loan to value, they are much tougher to get through, and they'll have very little discretion if the application didn't pass. 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, and the credit card they'd take 3% of the balance and again annualise it. If we then looked at a reduced income for you, this would probably work out at around 4.2 x your joint income, which isn't totally out of the question.

Basically for most of the major high street lenders it will be down to whatever the computor says. However, there are some lenders who don't credit score, and if the high street can't help, then one of the smaller regional building societies are a more likely source to approach.

If you'd like to get a clearer idea of exactly what we can / can't do to help, then you can speak to one of our consultants on 0344 346 3672 and they'll take you through the process.

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.

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