Chances of a mortgage?

ihatebananas

Hi,

What are the chances of me getting a mortgage for £139,950?

I am a single mum. My son and I have lived with my mum for nearly 2 years and it is doing my swede in!!! (she is an angel really)

I have no debts, and have managed to save £21,000.

What are my chances?

Or do you think I need to stop where I am for a bit longer and save more?

Thankyou

Peelerfart

Hi,

We need a little more info like income,debts,etc...

someone will be able to help I'm sure

PF

Mrs_Bumble

What is your income?

Do you have any other credit committments?

Is the purchase price £139,950 if not what is it?

Any credit history problems?

Your mortgage chances are all related to income and loan to value

ihatebananas

Sorry what a div!!!!:p

My salary is £28,000.

I pay my mum £500 board but that will stop when I buy somewhere.

My expenses each month are probably max of £200 car tax/insurance/diesel.

No childcare expenses

I have no credit problems as far as I am aware but was just about to double check thru experian!!!

Mrs_Bumble

lol
Property price?

My advice would be to go and see a good, independent, whole of market mortgage broker as you will need to find a lender that won't deduct from affordability because of having one dependent, and they will be able to do this for you.

Would have thought that borrowing around the £115K mark was achieveable.

I will just say have you completed a full income and expenditure as when you move out of your mums' there are going to be the joys of Council tax, water rates, gas, electric, telephone/broadband/ etc, etc - I am sure you have but thought it was just worth mentioning

ihatebananas

Thank you Mrs Bumble,

The property is actually on the market for £139,950, unsure whether they would drop it any, also fees and any furniture i need will have to come out of the £21,000!!

Very scared do not want to get into any hotwater!!!

May sit tight and save a bit more but this house is nice and I am close to a nervous breakdown with my ma!!!

Mrs_Bumble

If it is on the market for £139,950 then unlikely to actually worth that price.

Check out websites like https://www.zoopla.co.uk to see what houses have actually sold for in the nearby vicinity, will give you bargaining power. Also remember that white goods and carpets and curtains do nothing to increase the value of a property in the eyes of the valuer and you are better off negotiating a separate price for these if the vendor starts offering to leave them etc, especially considering the Government relaxing of the Stamp Duty band to help the housing market ends on 31 December and so then you will be back to paying duty on all properties over the £125K mark which will add further costs on to the bill as you will have to pay 1% to the Government!

To obtain a decent interest rate you need a good 15-20% deposit.

Housing market traditionally goes quiet over the next few months will perhaps make Vendors a bit more desparate to sell??

herbiesjp

You are over 4 times income, and borderline 80% LTV, based on the £140k purchase price.

This means that your options will be limited, and rates available will be higher than if you had a higher deposit.

Persoanlly I would view the time with your mum positively, as it means that you can hopefully build up your deposit further which could open up more doors.

If the purchase prices come down lower, then it may make theings easier in terms of the percentage you are looking to borrow and income multiples needed to get there.

I'm guessing you get tax credits in some shape or form, so don't forget that these will help your affordability and some lenders will take these into account when agreeing a mortgage.

itsakidsworld

Hi,

the property may appear perfect for you but please, do not go chasing something which is not within your price range.

Rates are very low at the moment and you must factor higher rates into your monthly costs.

I can understand how you feel living at home as we had the exact same problem many years ago. It would have been easy to jump the gun and move our for the sake of sanity but we held out and found what we wanted and needed within our restraints!

On any property at the moment, if you have your price agreed with a mortgage adviser, make a low offer and wait and see. You can go up but it is more difficult to go down. I believe prices and the current economy are false and the worst is yet to come- so be patient!

You sound very level headed and so please remain so in these "testing" times you face- and don't forget to give your Mum a hug and flowers!

The very best of luck

ihatebananas

Thank you all very much for your advice it really is appreciated.

My gut feeling is to stay where I am and save, save, save! My mother is not a bad old stick really just feel a bit claustrophobic sometimes and my son doesnt know which one of us is his mum!!!!

Thanks again