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FTB: 100% mortgage, self cert or 6 times salary?

dboswell
dboswell Posts: 309 Forumite
in Mortgages & endowments
I am considering how to get onto the property ladder. and your advice would be helpful. I am earning £30kpa and live in London. I have savings of £5k and no debts! I graduated about 4.5 years ago

I have looked at new build schemes where the developer pays all your fees and deposit etc. Ideally I would like to remain in north or east london, but I didnt find any suitable schemes. Does anyone know of any in London?

I have also considered 100% mortgages but on my salary I doubt I could afford more than a studio or 1 bed unless I can have 5 or 6 times my income or self cert. I cant afford to move out of London, as I would be back to square one; looking for work!

Regards
David Boswell

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What property prices are you looking at?
    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.
  • nmiah786
    nmiah786 Posts: 577 Forumite
    I'm guessing between £180k to £250k!!!!
    Debt at highest (November 2005) = £35,856

    Debt currently (August 2006) = £20,790
    &More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700

    Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
    2nd Interim Goal = £15,000, Target October 2006
    Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!! :p
  • dboswell
    dboswell Posts: 309 Forumite
    about £180k to £200k
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    nmiah786 wrote:
    I'm guessing between £180k to £250k!!!!

    @nmiah

    Sorry - it must be the adviser in me that makes me ask a question - guessing normally gives you the wrong answer.

    @dboswell

    You will not get a self cert mortgage with no deposit - and even with a minimum 10% deposit - you would have to have the right circumstances to be considered for a self cert mortgage.

    I do not think that you will get a 100% mortgage if your starting prices are £180k and your basic income is £30k.

    I would advise you to do a budget planner to see what your monthly outgoings would be, as affordability should be your main concern with this scenario
    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.
  • nmiah786
    nmiah786 Posts: 577 Forumite
    herbiesjp wrote:
    @nmiah

    Sorry - it must be the adviser in me that makes me ask a question - guessing normally gives you the wrong answer.

    Got the minimum right though :p

    :beer:
    Debt at highest (November 2005) = £35,856

    Debt currently (August 2006) = £20,790
    &More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700

    Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
    2nd Interim Goal = £15,000, Target October 2006
    Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!! :p
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