From: "James W. West" 
Newsgroups: uk.finance
Subject: Re: Morgage based on current rent
Date: Sun, 23 Nov 2003 17:41:01 -0000


"Aly" <02009446@napier.ac.uk> wrote in message
news:9ab6538e.0311230722.7418e01b@posting.google.com...
> Hi can someone help me. I'm a first time buyer who has a salary of
> 23500 and can only afford 88k NOw u can't buy shit in edinburgh for
> that buti'm paying 435 per month in rent which equals a morgage of
> 100k. I'd heard there is a morgage that is based on ur salary and rent
> that you pay. Does anyone know the name of this? or if they have any
> advice to please help me out!
> Aly

Some lenders will go outside 'normal' multiples, although you may need to
consult a mortgage broker to find which ones.

The biggest issue though has got to be whether you can afford it. Some
questions to think about- not necessarily answer online are:

1. Do you have any other debt- car loans, credit cards etc?

2. How much of a deposit can you put down? 10%+ would help your case.

3. Can you afford legal fees, stamp duty, mortgage fees etc? possibly £3k on
£100k house.

4. How would you cope with a £1000 repair bill shortly after you moved in?

5. How would you manage if interest rates doubled? They could go even
higher, but doubling over 2 years or so is not impossible.

6. Can you afford to furnish a property?

I dont mean to put you off, but a mortgage is a major long term commitment,
which can limit your mobility. Think seriously about it and then if you are
sure it is for you go for it.

James