Is it possible to get a mortgage with earnings of £24k & little depposit?

bflare

We currently live in a council house paying rent of £240/month, & would really like to be able to buy a larger house. We are now living in a 2 bedroom house with a 14 year old & a 20 month old. We have one income of 24 k but also get 5 k in child tax credit. We know we could easily afford £500/month on a mortgage but we think that we have no chance of getting a mortgage?

NewHouse_3

I have a mortgage and earn less than that. Your problem will be your deposit, you will need at least 5% of the house you want to purchase and that's only with 1 lender I have seen. Most others are 75-90% deposits. You also might not be able to find a large enough house for your family with such a comparitively small mortgage. Some lenders will take your tax credits into account but I'd say you're looking at getting between £75-100k mortgage - can you buy a suitably sized house in your area for that? Also can you raise even 5% of £75k?

I know how you feel tho. I was the same when I bought my first place, could afford the monthly repayments no problem at all, the issues were all regarding getting a big enough deposit and paying for solicitors fees, etc. Good luck.

_Andy_

bflare wrote: »

We currently live in a council house paying rent of £240/month, & would really like to be able to buy a larger house. We are now living in a 2 bedroom house with a 14 year old & a 20 month old. We have one income of 24 k but also get 5 k in child tax credit. We know we could easily afford £500/month on a mortgage but we think that we have no chance of getting a mortgage?

Hi

The key here isn't just income, but deposit. Do you have any deposit saved up? If so, how much?

Kez100

If you know you can afford 500 then you should use the extra 260 a month that you don't spend on rent to build a deposit.

dimbo61

As the housing market is going one way at the moment down I think now is not a good time to buy.
Instead save £500 a month for the next year
Now that is a challenge and if you can save that amount ( £6,000 in a year )
in a regular saver with your building society you are proving to yourself and the BS that you can afford a mortgage of £500 plus the £240 rent you now pay.
Buying a home has lots of extra costs ( solictors, surveys, mortgage fees, searches, moving costs, new carpets etc ) so save save save.
GOOD LUCK

Helga14

Save up for a deposit and also for the buying process. When you're buying it feels like everyone wants your money. Legal fees, searches etc all add up.