will we gat a mortgage?

sjaypink

hi, have searched through other threads but as things are changing rather rapidly right now with mertgages/ house prices, i thought it might be easier to start my own.

basically we rent at the moment and didnt think we would ever be able to afford a house, but have noticed prices are slowly coming down, and friends had an offer of 180k accepted on a 220k house last week, which got us thinking.

oh earns 17k pa. a job has come up for me at 19k ft, or 9k if i take pt.
i was going to go for the pt, as it would effectively mean we would be getting the same income (flexi time so could work without paying for childcare). ft means more money but lots of childcare to pay out.

so anyway my questions are;

1, do mortgage lenders only look at income? (would they just accept we earned 36k, or would they check and realise that after childcare it is far less?)

2, i know up until recently mortgages were available for upto 6x income, and there were options for those with bad credit too, but how are things now? our credit is not perfect, and we would only have 5k deposit- so what kind of mortgage might we get for 36k, and also for the 26k?

thankyou in advance.

edit; just realised loads of typos! hope you can read it ok!

~Beanie~

A £5k deposit isn't enough. That is a 5% deposit on a property worth £100,000 and what would you be able to buy with that?

Taking the top figure of £36,000 - 4 times that is £144,000 but you would need a deposit of 5% minimum (10% would be better) which is £7,200 and you don't have that.

PLus you say that you have less than perfect credit and so would possibly be needing a higher deposit than usual or be paying higher interest rates. Also you would need money for removeal costs, solicitors fees etc

I would wait a while and save as much as possible for a deposit.

mustrum_ridcully

I'm not an expert but currently most banks/building societies seem to want you to have at least a 5% deposit, some want 10% for their really good deals. So with £5k saved up don't expect to get a mortgage of more than £95k.

Your best bet is take the job, but live like you still had one income, in a year you could save £10-15k. That will put you in a much better situation for a mortgage - oh and don't forget all the costs associated with buying a house!

pinkshoes

You could probably borrow 4x your joint salary (so £144k), but would also need a 10% deposit for most mortgages now, plus £1k for solicitors, £1500 stamp duty, moving costs etc...

So you'll need to save up about £17k before thinking about buying a house.

ellielou_2

Hi

I have around 5 defaults registered against me from when I was with ex partner. These were all cleared 3 years ago & are due to come of my credit file next year as they have been there 6 years.

My mortgage fixed rate come to an end on 30th June this year and despite every effort from my Financial Advisor I have been unable to move to another lender so am now stuck with the variable rate of my current lender - which actually isn't so bad.

My property has £25k worth of equity in it and I needed to borrow 80% of the property value. So I am in a reasonable position, as I have in effect a 0% deposit. But 3 banks/bs have turned me down. Abbey accepted me but can only lend me up to 75% of the property value - which isn't enough.

I think you'd find it hard to get a mortgage currently with only 5% deposit - but you'll never know unless you try. Give it a go they can only say no, but you may be better waiting a little longer & try to build a bigger deposit.

Good luck.

mpsavuk

sjaypink wrote: »

edit; just realised loads of typos! hope you can read it ok!

I was going to say that there should be a new rule:

If you carnt spel you carnt gat a mertgage!!!

kirstyreanne

Sorry to hijack your thread sjaypink but my question's similar to yours so didn't want to start a new one.

Me & my partner have been looking to buy a house since January & still haven't found a property we like. I'm obviously worried about the state of the market & I think this is why we're so fussy - thinking this is somewhere we need to be happy to live for 5 years plus so it needs to be right!

My partner earns £18.8k/year & I earn £15.5k (partner also has chance for overtime most weeks but we don't want to take this into account incase it dries up in the future) & we have been in our current jobs 12 & 5 years respectively.

We're looking to buy a house for the maximum of around £110k, we have a total of £22k saved & intend to use between around £15k & £17k as a deposit. This is changeable though as we have capped our possible monthly mortgage payments at max £650 & so total mortgage we're willing to take out changes with the rates.

I know on paper this sounds good, but I'm still worried that we'll have a problem either getting a mortgage or that we'll choose the wrong thing. At the moment I've decided to fix for 5 years so that hopefully we won't have any (or little) negative equity in the house to enable us to remortgage. Is this the sensible option? Scared I'll do the wrong thing as my partner isn't great with figures & has said that choosing the right mortgage is down to me!!!

Sorry that this is long winded but just wanted a bit of advice with our situation from people who know more than we do!!!

Note: Forgot to say we're FTB's who currently live with parents & are desperate to fly the nest.......

inamess200

Hi

I am in a similar situation to you. We have a checkered credit history and alot of defaults ( dmp started 3 years ago)and 3 children. We currently rent a small 3 bed semi. We too noticed the price of houses falling and went to see a FA. We do have access to £15000 deposit plus an amount for legals and stampduty. Our combined salary is £42000 and have been offered a mortage of £130000 however it is not high street and interest rate is bad - however monthly payments are not much more than a 4 bed rental in our area (with in £30 per month) and we have found a house that is 4 beds with in our budget (repossesion) so i think we are going to go for it as we deperatley need a bigger house and we can slowly do the decorating work as and when we can afford.

We are also being charge a higher lending fee as we do not have a 15% deposit but weighing it all up I would rather have a house of our own than pay someone elses pension fund. Our plan is to do interest only for 3 years (its fixed for 3 years) and save into an ISa and then with mortgage history we hopefully can swop to high street repayment over 25 years.

dhassen

I can't believe that banks / lenders are still lending 4x joint salaries for mortages in todays market. Has anyone actually experienced this, say in the last month?

inamess200

Our offer - although only just over 3 times joint came in last week - although there is no way we will look to get full amount as it is quite a scary amount!!

dhassen

inamess200 wrote: »

Our offer - although only just over 3 times joint came in last week - although there is no way we will look to get full amount as it is quite a scary amount!!

How much, if you don't mind me asking? And what is the LTV?