First Time Buyer

zarazara

the house is £105,000 , my son has a 10% deposit saved, is there anyone out there who will offer a mortgage? annual salary = £20,000 gross.
Thankyou in advance.

Conrad

It's possible, but the only way to be sure is to actualy apply as lenders use software based decision systems, which, take itno account dozens of factors, not least of which is past credit history and propensity to pay on time in full each month.
In order to maximise the credit score you might want to keep in mind the following;

People without children have greater affordability
Smokers are marked down
Longer with Bank the better (some clients include that child savings account they had since birth!)
Giving landline home and work numbers is beneficial - mobile number only, are deemed a typical characteristic of people that have had credit problems - honestly (studies have been made of defaulters and this was a key characteristic)

herbiesjp

It may just about be possible with some lenders, assuming a good credit history and no other debts in the background

zarazara

thanks for the replies. No debt anywhere else and never has been. 1 child and partner. have been renting for about a year.

herbiesjp

Does your sons partner work?

Otherwise with 2 dependents it may get difficult for a lender to agree this - do they get benefits and/or tax credits?

zarazara

yes,they both work part time and with tax credits it brings their income up to what would be £20,000 gross

Cliveski2009

So their combined income (including tax credits) is £20,000 gross? so less after tax . . . . I'm not sure a lender would lend them over 4 times their combined salary (£80k). I don't even think they will always include the tax credits as income in calculations?

There are not many lenders doing 90% LTV but in my opinion Britannia have the best deal at 5.69% fixed for 5 years (we are currently applying for this).

herbiesjp

I think you might struggle

You should go through this scenario with a whole of market adviser in detail

Pont

Tax credits, child benefit etc are not included as income for mortgage purposes as far as I'm aware, only waged income is used for calculation purposes.

House price £105,000
Less 10% saved £10 500 Mortgage amount required £94 500

Joint waged income approx £17 000 (£20 000 less tax credits)

Mortgage required 5.6 X annual salary

Based on the above information I'm sorry to say but I don't think there is a mortgage company out there who would consider your son at the moment.

herbiesjp

Pont wrote: »

Tax credits, child benefit etc are not included as income for mortgage purposes as far as I'm aware, .

That is incorrect

Some lenders will take some or all of various benefits/credits into account for mortgage purposes

Different lenders have different criteria which is why you would need a professional to look at this for you to maximise the mortgage potential, if they do decide to go for it, if the figures show that it is affordable for them to do so

beecher

Should the question be 'can they afford it' rather than 'can they get a mortgage'? Sounds really risky to me to take on a 90% mortgage with a high salary ratio.