Just a bit of advice...

Karen_30

Hi,

I hope you don't mind me popping on this forum for a bit of advice for my boyfriend.

He is looking at buying his first house and just wanted to know what best for him to do....situation is this.....

Earns 30,000 per year (plus overtime on top of this) and has approx 40K for a deposit.

He has a CC with a balance of 200 or less on and a small personal loan (which he could pay off now) with less than 5K balances.

Good credit history as far as he knows, maybe one or two late payments at some point or another but only by 1 or 2 days. Nothing more.

What are his chances of getting a mortgage and what is the best way for him to get the maximum he can borrow as houses expensive in his area???

Also is there anything he can do in meantime to make sure he has the best chance of getting best mortgage deal?

Aplogies for all the questions but it's always nice for a bit of advice from those that know about it.

Thanks in advance.

McKneff

All very well saying how much he earns but if he is going to take a big mortgage out always advise him to take out income protection. No job is safe these days, except funeral directors.

beecher

He needs to get his credit report first of all - one or two late payments could make a big difference to his ability to get a mortgage. Get him to make sure he's never late again with any bill.

I suppose he might get around £120,000 so would be looking at houses at the £160,000 mark? Just a rough guess though - a mortgage broker would give a better idea.

TEDDYRUKSPIN

anniehanlon wrote: »

All very well saying how much he earns but if he is going to take a big mortgage out always advise him to take out income protection. No job is safe these days, except funeral directors.

LOL. LOL. LOL. :rotfl:

I just hope you don't put this quote reference on your 'suitability letters'. LOL. :rotfl:

Karen_30

anniehanlon wrote: »

All very well saying how much he earns but if he is going to take a big mortgage out always advise him to take out income protection. No job is safe these days, except funeral directors.

Very true :rotfl:

TEDDYRUKSPIN

Actually Karen he will get less than he thinks.

(A) clear the p/loan and credit cards. This will allow him to borrow more.

(B) One problem. Overtime or bonuses. Companies now require this to be constant meaning that he / she should be obtaining this over a nice 3 years period. The only way to prove this is through his p60's. Company will then average this and this will be his salary. PS. I will recommend him to use the £30k basic instead. This will give you a true mark.

(C). You state that you live in a extremely expensive area? Now. If you live in London, some companies will actually borrow you slightly more.

(D) Each company generally will borrow you different amounts. I suggest you to go on to the websites and click on how much can you borrow. Generally speaking on a £30k mark, you will be looking at roughly £126k mortgage without any debt over 25 years. An extra £5k over 30 years term. This is only a general idea.

(D) As for mortgage deals, these will change month by month mainly due to demand. I suggest you get an idea of how much you can borrow. In his case probably a house of £160k only.

(E) Miss a few payments on the credit card. 2 days late or so. Unlikely to affect him much but as above. If you are really worried order a credit report. You can get it free. Search on this website. Or order a copy for £2.50. Takes a week to deliver.

(F) Two final choices. Shop around or use an IFA. Your choice.

and

(Z). Only joking. As for income payment protection? LOL.... You only need it if you need it. It depends on each person's situation. Besides different companies have different definition for income payment protection. So be careful. Some is good and some is not. You need a full financial planning review from a decent advisor than someone telling you that you need it.

I could say you need a good builder (eg bob the builder). LOL

Karen_30

TEDDYRUKSPIN wrote: »

Actually Karen he will get less than he thinks.

(A) clear the p/loan and credit cards. This will allow him to borrow more.

(B) One problem. Overtime or bonuses. Companies now require this to be constant meaning that he / she should be obtaining this over a nice 3 years period. The only way to prove this is through his p60's. Company will then average this and this will be his salary. PS. I will recommend him to use the £30k basic instead. This will give you a true mark.

(C). You state that you live in a extremely expensive area? Now. If you live in London, some companies will actually borrow you slightly more.

(D) Each company generally will borrow you different amounts. I suggest you to go on to the websites and click on how much can you borrow. Generally speaking on a £30k mark, you will be looking at roughly £126k mortgage without any debt over 25 years. An extra £5k over 30 years term. This is only a general idea.

(D) As for mortgage deals, these will change month by month mainly due to demand. I suggest you get an idea of how much you can borrow. In his case probably a house of £160k only.

(E) Miss a few payments on the credit card. 2 days late or so. Unlikely to affect him much but as above. If you are really worried order a credit report. You can get it free. Search on this website. Or order a copy for £2.50. Takes a week to deliver.

(F) Two final choices. Shop around or use an IFA. Your choice.

and

(Z). Only joking. As for income payment protection? LOL.... You only need it if you need it. It depends on each person's situation. Besides different companies have different definition for income payment protection. So be careful. Some is good and some is not. You need a full financial planning review from a decent advisor than someone telling you that you need it.

I could say you need a good builder (eg bob the builder). LOL

Thank you, some really helpful advice there. I think he should be ok work wise, not likely to lose job. His overtime has been consistent for a number of years so shouldn't be too hard to prove.

Been really helpful thank you, he doesn't have a clue and I certainly don't!

Thanks again.