How much mortgage can we get?

kit

We will hopefully be in the position to buy a property early next year due to a divorce settlement finally coming through....however I'm not sure we can afford anywhere!

Can anyone give me an idea of how much we could get mortgage wise?

OH earns about £23,000. I am a stay at home mum so just get £50 per month child tax credit and £60 child benefit.

We will have about £10,000 to put towards a property and no debts.

We currently pay £535 per month in rent and cant really afford to pay much more in mortgage payments.

Any help with working this out would be great!

:xmassign:

herbiesjp

I think you would be wise not to exceed around a £90k mortgage. Therefore with the £10k deposit you could look at properties up to £100k.

Not sure if where you are, they purchase price is a reality.

On a current good fixed rate, a mortgage of £90k would be around £505 pm.

Hope this helps.

kit

Thanks for this...... its exaclty what I feared!

We live in Weston-super-Mare...... we would be able to get a 2 bed flat for that price but we need either a large 2 bed or a 3 bed house. An ideal place would cost about £130,000.

We will have to look into Shared Ownership or Homebuy in order to get what we need.

Thanks again..... you may be hearing from me for help and advice in the future.

:xmassign:

kit

Halifax issued us a mortgage promise today but will only promise £66,025.... havent actually spoken to a person about this yet as applied online.

Does anyone know who will give me more that this??

KiT

kit

Bumping - just in case anyone can help??

tomstickland

Read the MSE main site.
http://mortgages.charcolonline.co.uk/default.aspx?linkfrom=moneysavingexpert

mummytofour

http://www.lcplc.co.uk/

Great firm, no fees and they deal with the whole of market, if you are looking at S/O make sure you tell your broker as this is vital.

BenL

Have a look around other lenders websites.

You'll be able to beat that figure easily.

I have used Nationwide and now moving with Alliance & Leicester.

These 2 lenders should offer you more.

Ben

Stephen_Webber

I know it goes against the grain to be in debt for longer, but you could look at taking out the mortgage over a longer period of time (initially) with a view to remortgaging back down to a shorter interval later. This was the only way I could afford my house on my own. Failing that, look at interest only mortgages (yuck!) which would only really be worth considering in a rising housing market.

Regards,
Stephen

mummytofour

Stephen_Webber wrote:

I know it goes against the grain to be in debt for longer, but you could look at taking out the mortgage over a longer period of time (initially) with a view to remortgaging back down to a shorter interval later. This was the only way I could afford my house on my own. Failing that, look at interest only mortgages (yuck!) which would only really be worth considering in a rising housing market.

Regards,
Stephen

I totally agree, sometimes we have to choose the not ideal path,, as it is the only way to get to where you want/need to be.

kit

Thanks for your advice - am looking elsewhere to see what they can offer.

Can I just ask...... is my family tax credit and child benefit classed as a income??