Complicated 1st Time Buyer

MrsB1982_2

Early next year myself, my husband and mother are looking at buying a house together. My mum will have some money (approx £100k) to put into the purchase from the sale of her house which she currently owns with my father who left her 2 months ago. Anyway, i only work part time (we have 3 young children) earning around £5000 and my husband only earns £13520 a year working full time, so my mum said she will come in on the mortgage with us to help bump up the total income. My husband completed an IVA back in March last year and we've tried before to get a mortgage (a few years ago) and was turned down.

Is it going to be hard to try and find a lender that will be able to help us?

ILW

How much are you looking to borrow?

MrsB1982_2

Maximum 160,000

Probably impossible for us to get!

ILW

MrsB1982 wrote: »

Maximum 160,000

Probably impossible for us to get!

Is that on top of the £100,000 deposit?

MrsB1982_2

Yes it is....we having to move out of the area because it's impossible to get on the property ladder where we currently live. Moving from Buckinghamshire to Cambridgeshire.

I have savings of approx £10k but want to use this for fees and furnishings etc

Myself, my hubby and kids are renting a house from the local housing association, so we have no house to sell.

opinions4u

MrsB1982 wrote: »

Maximum 160,000

Probably impossible for us to get!

8 times joint income with an IVA?

No chance.

What's Mum's income?
What tax credits do you get?

Even if these numbers stack up, I think you're still struggling to pay up around £1,000 a month in repayments and associated costs.

Renting time.

Sorry.

MrsB1982_2

Mum's is 11k a year.

Tax Credit we get is £405 a month

Impossible i know!

ILW

MrsB1982 wrote: »

Yes it is....we having to move out of the area because it's impossible to get on the property ladder where we currently live. Moving from Buckinghamshire to Cambridgeshire.

I have savings of approx £10k but want to use this for fees and furnishings etc

Myself, my hubby and kids are renting a house from the local housing association, so we have no house to sell.

With a joint income of less than £20k the most you will be able to borrow will be around £60k, but probably less due to affordabilty criteria with 3 dependent children. To be blunt I do not think you are in a position to look at buying unless you can substantially increase your income, or look at buying in an area where houses sell for arouind the £100k mark.

benjo

You also have to consider your mothers age - if lending extends beyond pensionable age and her income reduces at that point then there may be problems securing lending beyond that point, meaning you may have to take a mortgage of shorter duration than 25 years....of course this might not apply to your situation.

Pee

And on top of this, you will be living with your mother. How will you OH feel about this, how will your children feel about this and how will you really feel about this when she is suggesting your way of washing up is inferior three months down the line? Sharing a kitchen with another woman can be really hard. Do you think you can both deal with that?

And the next thing is your mum has been separated for two months. Assuming that she won't go back to your dad, and stranger things have happened, in a couple of years she might well meet a nice man and be looking to spend the rest of her life with him. Will you be able to pay out £100k then or some larger indexlinked amount?

You have a housing association place. I don't know why you want to saddle yourselves with a practically difficult and financially difficult alternative...

MrsB1982_2

Thank You for your comment, but there's no chance of finding a 4/5 bed house for approx £100k.
My husband is looking at changing jobs when we move but mortgage companies will take his present salary into account when working out what we can borrow.
Hard times....