Mortgage with 35% of house price as deposit

G

greenwoodguy

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Hi All

just wondering, we are looking at getting a mortgage on a house worth 200,000

we have 70,000 as a deposit, so we would need to mortgage for 130,000 on a 3 bedroom house that are selling for considerably more than that at the moment

we however do not have a do not have a solid savings record with a bank etc

both of us earn a decent wage about 70,000 a year combined and both have been in work with the same company for years me 11 her 6

ive no loans etc and the other halfs 1 loan could be cleared before we went to try and get a mortgage, would having this amount of a deposit have any influence on approval ?

thoughts on this matter would be greatly appreciated
 
Whilst on the face of it one would think you're a safe bet for any lender the fact is that nobody ,inlcuding on this forum, can advise what the lender will decide.

Most lenders will want to see that you have enough money for furniture etc and contingencies. You may be better off seeking a higher mortgage -150.000 -and showing the lender that you have 20.000 cash over-and-above basic house price. Just an opinion.
 
The basic figures you're showing suggest that you'd be approved. But as well as the raw figures, lenders are also looking at how you manage your day-to-day finances. So they'll look at six months' current account statements, twelve months' loan statements etc. They'll also want to see that you're able to afford the repayments on the proposed mortgage, even if interest rates rise a few percent.

Two questions: -

(1) Did you accumulate the €70,000 savings yourselves?

(2) "we however do not have a do not have a solid savings record with a bank etc" Why not? (Not being nosey - it's a question a lender will ask.)

Liam D. Ferguson
 
2.5 years salary. Thats a pretty decent number to approach with.

The 2 big questions i think they'd ask are where the 70k came from without a good savings record(6 months is the norm).

2nd question being from myself, but why dont you have a good savings record in your opinion? Have you been spending most of it? If so, Could you maybe manage a couple months good savings record to show the bank that you've changed or ways, or at least can focus your finances when you really want to.

Good luck with your home if you get it :)
 
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