General Mortgage Advice for First Time Buyer

waltermcculloch

Hi,

My mum is in the process of trying to sell my grans old house and I would to be given a chance, I said if I offered her £100,000 would she accept that from me before going to anyone else. However, I've had some problems recently.

Basically, I am trying to remove fraudulent defaults/debts from my credit report, my true credit report should show that I have no debt and any I did have has been paid off in full and that all payments etc were always kept up-to-date.

My bank manager helped me to draft letters to the 3 main credit reference agencies to advise them that I had no knowledge of the debts and that I wanted them removed so as my report was true and accurate - the disputes are still currently ongoing.

I was going to wait until my credit report was sorted out, but, at the present time there are a few other people making enquiries about the house. Would I be able to try for a mortgage even with these fraudulent records on my report and that the credit reference agencies are aware that I dispute the debts and have marked my report as them being in dispute.

I'm 29 years old and I'm a Senior Clerical Assistant in local council office. My current annual salary is £16,710. At the moment, I have £10,000 saved which I could use for a deposit, I know that in terms of a deposit that this isn't much though.

I have had a short meeting with my bank manager, she advised that with my deposit and probably being offered 3 times my salary that I'd be able to afford something in the region of £60,000

I've done a spreadsheet listing outgoings and have calculated that I may have around £350 to £400 left each month.

Does anyone think I would have a hope in hell of getting anything mortgage wise?

If any other details are required let me know.

Thanks

bob79

I think that your bank manager is right: first clean up your credit record and when that is done you can afford a house in the region of £60k.

poppysarah

Houses are overpriced. It's criminal.

lyndasharp

Why not agree to rent it from your Mum while the defaults are being sorted out, then buy later?

When I was looking for a mortgage last September, HSBC would lend me £85k on a similar salary to yours and £10k deposit - would be worth approaching them directly as they were the most generous lenders, and as I'm a graduate they were lending up to 95% of the value (though in reality I couldn't have afforded the repayments at the time, so do make sure that whatever you borrow you can pay it back!).

jamief

poppysarah wrote: »

Houses are overpriced. It's criminal.

How can you say it is overpriced? The house could be enormous, suitable for a large family. Plus, the OP's salary is quite a bit below national average; someone earning an average salary could likely afford that.

poppysarah

jamief wrote: »

How can you say it is overpriced? The house could be enormous, suitable for a large family. Plus, the OP's salary is quite a bit below national average; someone earning an average salary could likely afford that.

I can quite easily say it's overpriced - because virtually every house for sale at the moment is severely overpriced!

before_hollywood

£90k mortgage at 90% ltv? on £17k a year?

speaking as someone who could have done virtually the same thing, i say heck no, i would use stronger words but this is my employers pc

dougk_2

poppysarah wrote: »

I can quite easily say it's overpriced - because virtually every house for sale at the moment is severely overpriced!

So are cars, peoples salaries in some cases and lots of other things!

To me house prices are reasonable when compared to ther things like cars and holidays! Look what you get in terms of a house for say £120k and what you get for a £100k car! Why is a Ferrari £100k+ and a normal family saloon car £15k say - yet they have the same function and are the same size, have four wheels and an engine.........................

But to the OP a £90k mortgage is a bit high for a circa £17k salary.

waltermcculloch

Hi,

Thanks for all the great comments.

The house in question is a cottage by the sea in Kintyre area, it has 3 bedrooms and a lot of ground to the back of thge property.

As i said in my opening post, I had done a bit of an estimated budget type thing and worked out I'd have around £400 left each month which could go to mortgage payment, but I know that kind of thing isn't really taken into account much.

waltermcculloch

Hi,

Sorry to bump my thread from a while back, I was speaking to someone last night who mentioned that he thought mortgage rules had or were changed/changing - something to do with it no longer being based on your salary.

Is this true? I can't find anything about it

Thanks

LEEFTB

My salary is £17,700 and I have been offered a mortgage of £80,000 with a clear credit rating and a deposit of £25,000 in the past few days.

Is there any possibility of renting from your mother. With it being a 3 bed house it would make sense to rent out a room to a lodger and this would put you in a good position to save a bit of cash every month.