150K 10% first time buyer

baz01

hi, i am a first time buyer currently looking at houses in the region of £150K, I only have 10% deposit. this is the thing,

Me and my girlfriend were looking to get a joint mortgage but she owns her own business with a partner, and have only been open for one year.

would it be possible to get the joint mortgage of should I get one in my name?
i currently earn £32500 p/y (with a pay rise to come in April of £6000) and my girlfriend takes home £15600 after tax(but self employed).
I have a credit card which is always paid off in full, but never used in the last year. We both have car loans which add up to roughly £200 each.

Do you think it will be possible to get this mortgage with either of the above??

What would be the rough cost per month?? (just a guide)..

Is there anything i should be looking out for??

advice needed.

thanks

phildo_2

House at £150k, less deposit of £15k leaves mortgage of £135k

Based on your salary of £32.5k this is a multiple of 4.15 times salary
If you wait for the (very nice!) payrise then multiple becomes 3.51 times salary. I would say that you could probably find a lender in both cases but would have a better choice of lenders after your payrise.

Rough cost of a £135k repayment mortgage over 25 years would be about £850 -£900 per month depending on deals available.

Things to watch for - when you say you have a 10% deposit.. do you also have savings to cover legals, mortgage fee, valuation etc? This can easily add up to another £3-4k.

baz01

thanks for the quick reply,

the thing is we have seen a house we like, so the ball needs to start rolling pretty soon.
deposit wise, we have £15K plus should be able to scrape together an extra £3-4K between us.

sounds good so far.

keep the comments flowing. cheers

herbiesjp

You may well have one or two limited options based on your sole income - the car loan will reduce your mortgage potential but you could find a lender that could give you a 90% mortgage and the required multiples.

powerwin

baz01 wrote: »

Me and my girlfriend were looking to get a joint mortgage but she owns her own business with a partner, and have only been open for one year.

My understanding is that normally 3 years of proven revenue is required for a self-employed person to be considered. Also, I believe lenders will only consider a percentage (maybe 50%) of a second salary when considering their loan.

It also depends how well you get on with your girlfriend too ... Personally, if I could afford the mortgage on my own that's what I'd do, but that's just me.

Just my thoughts, I'm no expert.

Rgds