will we gat a mortgage?

Debt_Free_Chick

sjaypink wrote: »

because of the income, the deposit, current reluctance to lend, outgoings, or all of this?!

Just to go back to one of your original questions ..... many lenders simply look at your income. A small number look at "affordability" so they want to see what your outgoings are. But the majority look at income. You, however, need to do your budget on a "what if" basis e.g. "what if we bought a house for £x, had mortgage repayments of £y AND had to pay childcare costs of £z". You must do this to see what your life would be like.

As others have said .... you ideally need a 10% deposit. Plus more to cover the cost of the survey, solicitors fees, moving costs, stamp duty etc etc ...

And, in the current climate, I think the best you could expect as a mortgage is 3.5 time joint income - less, if your credit record is less than perfect.

HTH

sjaypink

Debt_Free_Chick wrote: »

Just to go back to one of your original questions ..... many lenders simply look at your income. A small number look at "affordability" so they want to see what your outgoings are. But the majority look at income. You, however, need to do your budget on a "what if" basis e.g. "what if we bought a house for £x, had mortgage repayments of £y AND had to pay childcare costs of £z". You must do this to see what your life would be like.

As others have said .... you ideally need a 10% deposit. Plus more to cover the cost of the survey, solicitors fees, moving costs, stamp duty etc etc ...

And, in the current climate, I think the best you could expect as a mortgage is 3.5 time joint income - less, if your credit record is less than perfect.

HTH

thanks, yes thats true it would be a bit of a struggle and we would be thoroughly peeved if we scraped together ([STRIKE]begged family for[/STRIKE]) the 10% deposit and lived like paupers only for prices to fall a lot further.....
ok well i guess just keep saving then, and wait and see!

dander

Just to carry on from Debt Free Chick's message, I think at the moment with the inflation and risk of recession, the first question anyone needs to ask themselves is not 'what mortgage can I get?' but 'what mortgage can I afford to pay?' And that question has to include considering the effect of increasing fuel bills, increasing food costs, etc - as well as increasing interest rates.

With the current financial climate, now would be a very bad time to overstretch yourself.

inamess200

We are looking at it as what can we afford - current rent £600 - 4 bed rent locally around £995 ( which we have been considering for a while) we have a mortage offer for repayment over 30 years (£130,000) £1120 per month (LTV 90%) now that is too much for us and we know it but we now know what interest rates we are looking at - basically 2% higher than high street and if we can get a repo for the price of the increased rent then i think we will go for it and finally have a place to call ours.

we lived beyond our means for years when the children were small husband in farming (not good in the foot and mouth years) credit cards being chucked at us left right and centre and we spent I admit ( not florida holidays or posh cards just nursery fees and food and living) but then in the space of 10 months baby no 3 came along unexpectedly, husband had a break down and his back went - hasn't worked for 3 years - so I went to payplan agreed a repayment plan and went back to work full time. We will never get on the ladder with a high street mortgage but I have been through some really bad times and if the fall in prices means we can buy albeit at a higher rate ( we have never known any different ) then we will go for it in the next 6 months.

I expect we aren't the only people up to our eyes in credit and alot will be having problems soon and learning the hard way - I am 3 years down the line we now have no credit ( a mortgage is the only credit we will ever take on again) if we have cash then we buy if not we don't hard with 3 children but we manage and have a good life.

geoffky

i am willing to bet that you will find if you wait a year you will be paying less and also gives you a chance to save a deposit because most banks are chasing peolpe with no savings and rightly so.

dhassen

_Andy_ wrote: »

4x income is relatively standard. (Assuming no huge outgoings on debts)

4 x joint salaries?? Are you sure you're talking about today's market?

_Andy_

dhassen wrote: »

4 x joint salaries?? Are you sure you're talking about today's market?

Yes indeed I am.