Mortgage?

tam2oo5

Hi, i was looking for some help regarding a mortgage lender. Me and my sister have just inherited some money from my fathers estate when he sadly passed. The problem is we have been renting for the past few months and now would like to buy as we would be able to pay a deposit on a mortgage. My sister currently earns in the regien of 14 to 15k, im currently a student at the minute.

Would we be able to get a joint mortgage, how much would they lend us?

Were interested in a flat at 110'000 , should have around a 30% deposit and we are first time buyers.

Thanks

_Andy_

So you're asking if you can borrow around £80k? (I'm assuming you've factored in legal costs, valuation fee, moving costs, contingency money separately).
The answer is no, not on £15k. A more realistic figure would be £60k.

tam2oo5

Thanks, yes iv included all the costs required. We have more than 30% however we would like to keep some money for any more costs that occur including furnishing ect..

Im currently earning around 6k a year at university and i am in the process of finding a part time job, would this come in to account?

herbiesjp

Is that bursary income?

If so, one or two lenders may consider that income (most lenders do not)

Any part time job income could be taken into account - again depending on the chosen lender.

tam2oo5

Thanks for the help, im completely new to the applying for mortgages ect..

How much can a bad credit rating effect your chances of a mortgage when putting down such a big deposit? As my sister does have a few things on her record, not paying phone contracts, missing payments in a 300 loan ect..

Thanks

opinions4u

1) Don't buy a property with a sibling - it is guaranteed to end up with a major falling out and sooner or later one of you will want to take their life in a different direction. Owning a property could prevent that or significantly delay it.

2) Don't buy a property with somebody who has bad credit. Sooner or later their poor payment practices will reflect on your credit file through the financial association of property ownership and mortgage. This could impact on your financial choices in the future.

Think about this very carefully. What happens when you pursue a relationship with somenody and want to live with them? What happens if your sister wishes to move out and leave you with the mortgage debt? What happens if your sister wants the equity in the property to fund a deposit on her own place? Or you want the equity to fund your own depost? There are circumstances in life where renting is exactly the right thing to do. Stick your money in a decent savings account and keep it for a day when you really need it.

Can you get a mortgage? Yes.

Will bad credit affect it? Yes, see a broker if you wish to ignore my advice above.