Is it possible to get a mortgage with earnings of £24k & little depposit?
bflare
Posts: 464
Forumite
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?
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Comments
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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.0 -
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?0 -
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.0
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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 LUCK0 -
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.Top wins in 2018: Trip to Iceland, helicopter ride over london, couples massage, £300 flight from Pringles, trip to Paris, cocktail making class and afternoon tea up the shard. .
Top wins in 2017:holiday to the Bahamas, trip to Paris, meal with champagne, a week in a manor house in France with £500 spending money.0
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