good job but need mortgage

galoot101

Hi everyone,

my name is Alan and I am new on here. I am a senior registered nurse on a basic pay of £37,000ish per annum. My partner earns about £25,000 per annum. I was separated 2 1/2 years ago and have no savings for a deposit.

I am seeking advice on what is the best way to get a mortgage as due to the 100% deals not being available anymore I am probably 2 - 3 years away from being able to save for one. I can easily pay £1000+ on a mortgage and have a secure job.

I was wondering if I should apply for a separate bank loan to pay towards a deposit but this might be complicated. Any Advice please on this matter?Also , are there any companies providing 95% mortgages?

Cheers,

Alan

Thrugelmir

Here's somewhere to start looking.

http://www.fsa.gov.uk/tables/

The downside of low deposit is a far higher interest rate.

kinglewis

The further bank loan will complicate things further... ie you won't be able to lend as much.

Best get saving...

opinions4u

galoot101 wrote: »

my name is Alan and I am new on here. I am a senior registered nurse on a basic pay of £37,000ish per annum. My partner earns about £25,000 per annum. I was separated 2 1/2 years ago and have no savings for a deposit.

Typically you will need a deposit of 10% of the property value plus a further sum to cover legal bills, survey fees, stamp duty and mortgage product fees. A bigger deposit (e.g. 15%+) will get you access to cheaper mortgage rates.

I am seeking advice on what is the best way to get a mortgage as due to the 100% deals not being available anymore I am probably 2 - 3 years away from being able to save for one. I can easily pay £1000+ on a mortgage and have a secure job.

Save a deposit up and then apply. The market may change over the next year or two and 95% deals may become available. But this isn't guaranteed in any way.

I was wondering if I should apply for a separate bank loan to pay towards a deposit but this might be complicated.

Any lender who believes you took out an unsecured loan to fund your deposit will decline you a mortgage. Even if they believe you borrowed the money for another reason they will reduce the size of mortgage available to you based on the size of unsecured credit commitments.

Also, are there any companies providing 95% mortgages?

I'm not aware of any. Over recent months some posters have highlighted 95% deals from Yorkshire Bank, Clydesdale Bank, Nottingham Building Society. But these lenders don't openly promote such deals via their web site, so don't hold out too many hopes.

_Andy_

galoot101 wrote: »

I was wondering if I should apply for a separate bank loan to pay towards a deposit but this might be complicated. Any Advice please on this matter?Also , are there any companies providing 95% mortgages?

Hi Alan

I'm not aware of any personal loan providers that will lend for that purpose.
More importantly though, no mortgage lender will accept a personal loan as a suitable source of deposit.
As frustrating as it may be the only real advice at the moment is to keep saving.
Bear in mind as well as a deposit you will need to consider things like legal fees, valuation, cost of moving, furniture, decoration, ongoing cost of maintaining and improving a home, as well as contingency funds.

g_attrill

What are your current outgoings? If you are saving for a deposit you need to save hard, and really look at your outgoings. You should have an income of around £3,800 per month, so I would think you could comfortably save £2k/month, depending on what cars you have. So in two years you could have £50k, although that might not go far depending where you are looking to buy!

galoot101

sorry for late reply...wrote this when I was tipsy and forgot I joined the forum lol.

I'm still at square one and finding it difficult to save so starting again....too many bills etc to pay.

beecher2

If your household income is still what it was, you should be able to find a way to deal with your budget in order to save. Go onto the Debt Free Wannabee forum and post a Statement of Affairs and you'll get help in doing this.

CloudCuckooLand

How do you plan to get a loan, when you couldn't even get an overdraft extension, according to your post of 3 days ago?

With a managed loan and missed payments in your recent credit history, you need to save a 15% deposit to offset the poor credit record.

£62k joint income and unable to save a penny? Time for a reality check...get to the DFW forum as suggested.