do you think i will be able to get a mortgage?

linniebabe69

Hi everyone,

ive been a member with mse for over a year i think but i am quite a novice when it comes to the forums...hence posting something wrongly yesterday!!!!

I was hoping to buy a house but due to the current climate i am not sure that i will get a mortgage.

My situation is as follows:

i live in a council house which is very large and has a large garden-bigger than average.

in 2006, out of curiosity, i applied to buy from the council and it was valued at £65,000 including £22,000 discount. Current market value at the time was approx £129,000, however, i was in full time education and therefore had limited income and did not want to commit to a mortgage.

A year later in 2007, before the "credit crunch" my house was valued on behalf of the council for £82,000 which included £22,000 discount for living in a council house for so many years. Obviously this had gone up in the year but i did not realise how much. The then current market value was £140,000-£150,000.

Now, due to the current financial climate i ahve not had it valued yet but i anticipate it may be valued around the region of £70,000-£80,000 but am worried i may not get a mortgage.

My total debt amounts to approximatley £2000 :A which i know is very small but i do not have a deposit to put down and i will be starting a new job, therefore it will not give the impression that my income is stable. My credit history is weak due to financial problems years ago. :eek: Also i am 34 and am worried about how many years i would get it over as i dont want to be paying for it for ever and basically i am a first time buyer and know very litle about all of it

Is there any chance for me to get a step on the ladder or am i following an idea that will never happen?

what can i do to reach my goal?

many many thanks for reading. xxxxxxx:D

poppysarah

Your home is secure so why don't you keep saving up until you've got enough money to easily get a mortgage.
Ask about a valuation again in 18 months when you have consistently saved month after month.

Until your mortgage payments are a lot less than your rent it doesn't make any sense to buy.


A nice council house with a big garden is the BEST step on the housing ladder. Cheap rents, repairs done, sane landlord, and long term stabiliity.

linniebabe69

poppysarah wrote: »

Your home is secure so why don't you keep saving up until you've got enough money to easily get a mortgage.
Ask about a valuation again in 18 months when you have consistently saved month after month.

Until your mortgage payments are a lot less than your rent it doesn't make any sense to buy.


A nice council house with a big garden is the BEST step on the housing ladder. Cheap rents, repairs done, sane landlord, and long term stabiliity.

what sort of deposit would you say i should be looking at? do you have a idea?

poppysarah

minimum of 10%

You should go to a mortgage calculator and play with interest rates and how much it'll cost you
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

You pick the rate on this one - try 6%, 7%, 8% - see how they work out compared to rents.

at 7% you'd would need a mortgage of £42000 to cost them the same as the rent. (£300 a month on a 3 bed semi)

pinkshoes

linniebabe69 wrote: »

My total debt amounts to approximatley £2000 :A which i know is very small but i do not have a deposit to put down and i will be starting a new job, therefore it will not give the impression that my income is stable. My credit history is weak due to financial problems years ago. :eek: Also i am 34 and am worried about how many years i would get it over as i dont want to be paying for it for ever and basically i am a first time buyer and know very litle about all of it

Is there any chance for me to get a step on the ladder or am i following an idea that will never happen?

what can i do to reach my goal?

many many thanks for reading. xxxxxxx:D

You have debt, no deposit, and a poor credit rating, so your chances of getting a mortgage are ZERO.

Work hard, pay off your debt, save up a 15% deposit, and THEN think about buying.

Until then, you have the luxury of a secure rental property, which many people would love to have!

circuit

pinkshoes wrote: »

You have debt, no deposit, and a poor credit rating, so your chances of getting a mortgage are ZERO.

Work hard, pay off your debt, save up a 15% deposit, and THEN think about buying.

Erm, having got a good high street mortgage on the first attempt a couple of weeks ago, with debts, a poor credit rating and a 10% deposit, I would say the opposite.

Speak to your bank or a mortgage advisor and be realistic about what you can afford. A good mortgage advisor will go through it all with you.

Good luck!

pinkshoes

circuit wrote: »

Erm, having got a good high street mortgage on the first attempt a couple of weeks ago, with debts, a poor credit rating and a 10% deposit, I would say the opposite.

Speak to your bank or a mortgage advisor and be realistic about what you can afford. A good mortgage advisor will go through it all with you.

Good luck!

Have you actually bought the house, or is this just on paper? i.e. many lenders offer them on paper, but when you actually come to buying and taking the mortgage out, it all falls through and they turn round and ask for a bigger deposit.

If you have a deposit, why have you not used it to pay off debts instead, to improve your credit rating???

tammyland

My sister is applying for a mortgage, shes got plenty of savings, shes gonna put down a 20% deposit, and has been in the same job for about ten years, the only thing is shes never had credit, will this affect her mortgage application?

Saver-Rob

tammyland wrote: »

My sister is applying for a mortgage, shes got plenty of savings, shes gonna put down a 20% deposit, and has been in the same job for about ten years, the only thing is shes never had credit, will this affect her mortgage application?

I was in a similar situation. I have no credit rating and my only bill is for the mobile phone, yet I have just been offered a mortgage without a problem.

I dont know if it normally matters but it certainly didnt in my case.

linniebabe69

Saver-Rob wrote: »

I was in a similar situation. I have no credit rating and my only bill is for the mobile phone, yet I have just been offered a mortgage without a problem.

I dont know if it normally matters but it certainly didnt in my case.

can i just say, i was looking at your info at the bottom of your page and your savings are fab and well impressive. can i ask how long it has taken you to save it?

linniebabe69

thank you everyone for answering, im really grateful and have taken alot of inspiration from you all and i am keen to start saving

:beer: thanks xxxxx