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Getting a mortgage. First time buyer

Options
I understand most companies will only lend 3.8 your income, my current income is £16,700, just left Uni.

I have been looking for places to rent where I work as currently travelling 300+ miles a week, an hour to work and an hour back.

Rent for a one bedroom is £450 to £650 in the region (moderate flats)... so was looking if any cheap flats to buy...

Cam across one for £90k, reckon could get it for a couple of thousand less... with a deposit of £8k... so looking for a mortgage around £80k.

I could afford payments on that... repayment: £546 (6.49%) / Int only: £433 (6.49%) but probably won't be given a mortgage for that.

Any other ways round this?

Thanks

Comments

  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Depends your outgoings but there won't be many lenders who will do 4.79x your income.Do you have any debts like loans, credit cards, etc.?

    Any adverse credit?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    There are lender that will agree more than 3.8 times your income

    As long as you have a good credit history, and no other debts in the background.

    Having a 10% deposit will serve you will in terms of getting better deals and keeping to lower fees

    Sounds like you need a good whole of market adviser to help you out - have you been doing your own research?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Nonshy
    Nonshy Posts: 295 Forumite
    I do have student loan debt, is that included in calculations?

    Payments towards that are only a couple of pound a month as just over the £15k threshold.

    I don't have any other finance or credit card debts though.

    I haven't had a look into deals etc yet as thought my income would be insufficient.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You could look at guarantor mortgages - if you have parents willing to go this route
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Nonshy
    Nonshy Posts: 295 Forumite
    I thought about this but they are also in process of relocating... the purchase of their new property will be higher than current property (moving from north east to south east).. so i imagine this would also effect their new mortgage?
  • beecher
    beecher Posts: 2,497 Forumite
    Is it worth looking at shared flats? Used to be the norm when I graduated as none of us could afford 1 bed flats.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Nonshy wrote: »
    I thought about this but they are also in process of relocating... the purchase of their new property will be higher than current property (moving from north east to south east).. so i imagine this would also effect their new mortgage?

    Difficult to say without knowing the full details/scenario

    You might be able to find a lender to agree the mortgage in your own name, but the monthly repayment cost would be around £586 pm on a 25 year repayment mortgage
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Nonshy
    Nonshy Posts: 295 Forumite
    beecher wrote: »
    Is it worth looking at shared flats? Used to be the norm when I graduated as none of us could afford 1 bed flats.

    do you mean finding a friend who wants to buy and share mortgage with him?

    not something i would really want to do as fear may wreck friendships when comes to the time of both moving on or wanting to sell.
  • beecher
    beecher Posts: 2,497 Forumite
    Nonshy wrote: »
    do you mean finding a friend who wants to buy and share mortgage with him?

    not something i would really want to do as fear may wreck friendships when comes to the time of both moving on or wanting to sell.

    No, I meant that you could rent a room in a shared flat. Renting seemed to be your first option and it did used to be the norm - I shared for the first 8 years or so after graduating as I couldn't afford a mortgage or the rent on a 1 bed flat.
  • Nonshy
    Nonshy Posts: 295 Forumite
    i have shared for last four years with friends but most of my mates who I could stand living with are all settled... i moved back home after Uni for a while to live with parents.

    Now they are relocating and I need to find somewhere!!

    The flats I have seen for £90k are in perfect location and although small it's exactly what I need... never been a fan of renting as always feel by the time I am settled I am moving on.

    I used moneysupermarket to try and see if could be offered a mortgage and Natwest came up with best deal... 6.14% for 2 years.

    That was with £10,000 deposit.

    Would I be likely to find a better rate when interest rates drop again? Or will those deals for the likes of myself still be around the 6% mark as I would be deemed as a riskier customer?
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