Mortgage possibilities on 45k Joint Salary

leemuddywaters

_Andy_ wrote: »

Well please forgive me for attempting to help you.
Your reply is quite rude and defensive. You've asked for help, I've provided it.
Home-owning is always more expensive then you think.
I won't bother attempting to assist you in future.

Andy, no offense was meant whatsoever, just pointing out a few things not being rude at all, appreciate any advice, realistic or not.

Apologise if you took it that way.

leemuddywaters

_Andy_ wrote: »

PS please forgive me for not being psychic, therefore failing to realise you're buying a new-build, which of course you didn't mention in your original post. Silly me!

Its just a debate on things, no-one is being offensive whatsoever!

happyrichard

Wutang wrote: »

I really don't know what Maggie Philbin has got to do with anything.

OP - 50k house would be alright.

HappyRichard "the market has changed to ensure that people do not get themselves into a situation where they can't afford the homes" - no, its because we have had a recession and lending is stricter as house prices have been falling. Not some pro-active safeguard instigated by the caring banking sector.

Sorry, but you are simply wrong. It is not to do with falling house prices. It is a safeguard to protect the bank from giving out unpayable debts. Next time, before you say "no", think...it's a refreshing change.:rolleyes:

blueberrypie

leemuddywaters wrote: »

Suppose its the stability and a sense of being settled. I do see both sides yes, Its just very frustrating. At any moment really when renting you can be told to move out, also spending £650 which is dead money is frustrating.

It's not dead money - it's giving you a place to live.

And yes, owning rather than renting does mean you'll own the place at the end of it - but in the meantime, you'll be paying interest (especially at the beginning of a mortgage) and you could also consider that to be dead money. (If you get into negative equity, it could be dead money that's costing you to keep it buried!)

The above points about your deposit are valid. How much can you save each month *now*? If you can't save (much) before buying, you won't be any better off after buying - and especially after starting a family.

A few numbers to consider: if you borrow £100k over 25 years, at 5%, you'll be paying back a little under £600/month. Borrow £180k - which you could do, based on your joint income (assuming a decent deposit and good credit), and your payments would be over £1000/month.

You also need to consider the other costs of buying and owning a property. Buying involves mortgage fees, valuation fees, legal fees, stamp duty... Ongoing ownership costs include buildings insurance, life insurance/income protection, maintenance/repair costs (even on a new build), possibly increased utility costs, etc.

I understand your wish to buy a house - even if it works out slightly more expensive than renting, I'd rather own my home than rent it. But with only a £5k deposit, buying right now wouldn't be a good move even if you *could* convince a lender to give you a mortgage.

leemuddywaters

blueberrypie wrote: »

It's not dead money - it's giving you a place to live.

And yes, owning rather than renting does mean you'll own the place at the end of it - but in the meantime, you'll be paying interest (especially at the beginning of a mortgage) and you could also consider that to be dead money. (If you get into negative equity, it could be dead money that's costing you to keep it buried!)

The above points about your deposit are valid. How much can you save each month *now*? If you can't save (much) before buying, you won't be any better off after buying - and especially after starting a family.

A few numbers to consider: if you borrow £100k over 25 years, at 5%, you'll be paying back a little under £600/month. Borrow £180k - which you could do, based on your joint income (assuming a decent deposit and good credit), and your payments would be over £1000/month.

You also need to consider the other costs of buying and owning a property. Buying involves mortgage fees, valuation fees, legal fees, stamp duty... Ongoing ownership costs include buildings insurance, life insurance/income protection, maintenance/repair costs (even on a new build), possibly increased utility costs, etc.

I understand your wish to buy a house - even if it works out slightly more expensive than renting, I'd rather own my home than rent it. But with only a £5k deposit, buying right now wouldn't be a good move even if you *could* convince a lender to give you a mortgage.

Thanks, some good points. I know we need to be realistic to get an understanding of where we need to get to. We are just married at 28 and my wife 30, just feel we are at an age where we "should" have a mortgage, although we've only been together a few years.

majorzott

We are in a similar position - 44K joint salary, we got a 85% mortgage with Nationwide, (15% deposit), we could have borrowed up to 190K. The more deposit you have the better the mortgage deal. So you need to save at least 30K for deposit and solicitors/surveyors etc. - Good luck hope you make it.

KingKev7

Im feeling your pain muddywaters, myself and my partner have a little un on the way and would like a steady home to raise a family. People say u need a bigger deposit - i have 70K and i was turned down today... because of a £280 unpaid vodafone bill thats in dispute because I refuse to pay them for a contract they didn't provide. They say a default is a worry because it shows you are having financial problems! With 70K in the bank, i don't think so... Also my experience of mortgage brokers is that they serve less purpose than estate agents and are as equally useless! Every single one keeps you there for ages, asks the same mundane questions, taps the replies into a computer and looks up at you and says 'computer says no.' I can quite easily tap these details onto an online form rather than have to sit with an 'expert' only to be told that having a 280 quid debt default proves you cant afford a monthly mortgage repayment that is about a tenth of my take home monthly pay. Ridiculous!! I'm just going to wait another year, hope that prices fall further and save every penny and buy cash. Unlucky banks you could have made easy money out of me