Help!!! Mortgage advice needed.

lee._4

Evening all,
Ok me and my girlfriend are looking to buy a house, We are first time buyers.
We currently private rent a detached bungalow and pay £600pcm rent, we decided if we could get a mortgage for a similar amount we would go for it, for 2 reasoons really, firstly we have been privatly renting for a few years now and would just like to have a home we can call ours,free to decorate etc at will. Second reason is our son, he is only 4 months old but im thinking of his future and buying a house now would be hopefully an inheritance for him in the future to sell or whatever.
Anyway we had a meeting with the Halifax a couple of days ago to see what we could borrow, as my partner is on maternity leave we wernt offered as much as we would like but it was sufficent to buy something we would both be happy with.
Now for the problem......Deposit or lack of one. We have no savings and obviously renting and supporting a child leaves us with no chance of saving one up.
So we are looking for solutions, i know the 100% mortgage is a thing of the past but is there any other options available to us or should we just accept we cant afford it.
Im 26 and my partner is 23, Its extremely frustrating as i earn a decent wage and could easily afford to pay a mortgage, if we could get one
Any advice would be most appreciated :beer:

kataklysm

If I were you, I'd be thanking my lucky stars that there isn't a mortgage to pay. It sounds like that's the last thing you need. You don't mention where you are or how much you'd want to borrow, but you'd be extremely unlikely to get a 100% mortgage now, for good reasons. And that's from someone who has one... Did the Halifax give you an offer based on no deposit?

We bought at a similar age, and I have to say we should have waited until we had some proper savings and stable employment before committing to a house purchase. It's not just the mortgage costs, but the insurance, repairs, improvements, stress... I could go on. Things are always breaking and there's no landlord to call. Will you still be able to cover the repayments on your own when interest rates rise? What if you lost your job?

My advice would be to wait to see if your partner returns to work before making any long term plans. Sorry to put a dampener on things, but you have plenty of time to think about investing for the future, and there's nothing wrong with raising your son in rented accomodation for now. Try to keep hold of what you have and save for the future instead.

lee._4

we were offered 135,000 based on a 10% deposit.
My partner is in a permanent job to which she will be returning part time in around 4 months time :cool:

herbiesjp

Some lenders will take your partner's income into account if she is going back to work.

You will need a minimum 10% deposit

You will need a clean credit history. You will also need other credit commitments down to a minimum i.e. other loans/ credit card balances etc.

Did Halifax give you the monthly figures that mortgage would equate to? Was it inside the £600pcm budget?

If you do not have the deposit, you will not get the mortgage, irrespective of whether you could afford it or not.

So unless you have family that can help out with the deposit side, you will struggle.

You have not posted any income/debt figures, so difficult to give guidance on the feasibility of the scenario