Would i get a mortgage

carlih1

Hi

I am currently living in council accomodation but as the area is very up and coming and the town is being redeveloped this year and next i thought it best to buy my home now off the council before house prices go through the roof here!

My problem is i have some debt and a low income would i get an interest only mortgage on my wages only or would i need a backup.

I dont know how these work, i earn about £14,000.00 per year with 2 children. I would porbably need a mortgage of £160,000.00

THank for your help

Carli

totalguitar

With a 14k salary you may get a 4x single income giving you a 56k mortgage, a little short of the 160k your looking for. Unless anyone knows better ?

80934

Hi,

I don't think you would have any chance of getting a mortgage for the amount you need on your salary. Normally lenders go to a maximum of 4 x salary for mortgage calculation.

If you had someone who could act as guarantor that could be a possibility however the interest payments alone would not be affordable from your salary.

Sorry if this is not what you hoped to hear!

Ian_W

Sorry Carli, got to agree with the others, some lenders will do 5x salary but no-one I know of will do +11x salary.

The monthly repayments would be over £660 if you could get it at 5%. Is that really affordable with 2 kids & some debt? Last thing you need credit history-wise is a default or repo on a mortgage.

If you're happy with the house, you have security of tenure with the Council and the benefit of things like repairs and maintainance being paid by them, stick with renting. If prices go up there's nothing you can do about it, but at least you do have a secure roof over your [and your childrens] head.

Is the £160K at "a right to buy" price? If so your area is already pretty expensive as it is.
I don't know very much personally about shared ownership schemes but they may be a better starting point for you. BoL.

carlih1

I thought this was the case my dad says he would be guarantor but as my rent is only £400 thats another £200-£300 per month to find.

Anyway i have new deals in the pipeline so may have to wait for those to come to fruition before i invest in my own property.

As to shared ownership how expensive are they?? My friend was offfered one and was to buy £90,000.00 mortgage AND pay £75 per week rent. Surely they are having a laugh is this is supposed to be affordable housing?

Carli

mummytofour

carlih1 wrote:

As to shared ownership how expensive are they?? My friend was offfered one and was to buy £90,000.00 mortgage AND pay £75 per week rent. Surely they are having a laugh is this is supposed to be affordable housing?

Carli

Sounds like the new build S/O round here, they are selling S/O homes ( 3 bed semi) which are being sold on 50-75% share with full market price of... £280000 so half of that would be £140 plus rent. Not really any hope for our kids eh??