A first time buyer question

TLC_Queen

Hi we are looking to buy our first home. I am pregnant and not working at the moment and my partner is self employed. He earn't £28k last year and I think £25k the year before.
We have found a house for £115 - £120k that has been on the marker for nearly a year and is empty. It has just been reduced from £120k - £125k so we would possibly like to offer £100k as it does need a lot of work.
We have £3k in an ISA and would have to get a loan for the remaining deposit (5%) and fees.
My partner does have a very old store card he is paying off although they never send him statements and it only gets paid every now and then when they contact him. He has asked several times for direct debit details to be sent but they never turn up and it then gets forgotten again.
He is also always in his over draft too.

Do you think we are in with a chance of getting a mortgage?
Also any idea roughly of what all the fees for buying this property may come too please?

We don't have any other debts at all, no HP, no Credit cards or anything.

Thank you in advance.

T&S

brit1234

Unlikely you will need a far bigger deposit, your savings would barly cover the fees.

Better get saving and enjoy this years price falls as the market corrects itself.

iamana1ias

TLC_Queen wrote: »

Hi we are looking to buy our first home. I am pregnant and not working at the moment and my partner is self employed. He earn't £28k last year and I think £25k the year before.
We have found a house for £115 - £120k that has been on the marker for nearly a year and is empty. It has just been reduced from £120k - £125k so we would possibly like to offer £100k as it does need a lot of work.
We have £3k in an ISA and would have to get a loan for the remaining deposit (5%) and fees.
My partner does have a very old store card he is paying off although they never send him statements and it only gets paid every now and then when they contact him. He has asked several times for direct debit details to be sent but they never turn up and it then gets forgotten again.
He is also always in his over draft too.

Do you think we are in with a chance of getting a mortgage?
Also any idea roughly of what all the fees for buying this property may come too please?

We don't have any other debts at all, no HP, no Credit cards or anything.

Thank you in advance.

T&S

You have no hope.

goldengirl28

i think it will be difficult to say the least

hermum

If you're always in overdraft will you be able to afford the mortgage or would that be a lot less than rent you're presently paying?

Milliewilly

My partner does have a very old store card he is paying off although they never send him statements and it only gets paid every now and then when they contact him. He has asked several times for direct debit details to be sent but they never turn up and it then gets forgotten again.
He is also always in his over draft too.


I don't think your partner is being totally honest with you about this, but to answer your question you will be a massive risk for a lender so will struggle to find anything. The days of sub prime lending are gone.

Snippa

I agree, it will be almost impossible. If you have one risk issue: ie self employment, bad credit, small deposit, it can maybe be overcome with some lenders, but once you start having several you will really struggle. Also I'd be very surprised if a lender didn't pick up on you getting another loan for the deposit. This used to happen in the wild lending boom, but I doubt you'd get away with it now. A lender will want to see a deposit that you have in hand, in savings of some kind.

Hailstorm

I don't think you would to be honest.

Firstly the depoist isn't big enough. Secondly if you take out a loan for your deposit the lender will consider these repayments when working out whether or not they think you can afford the mortgage. This may reduce the amont they are prepared to let you borrow.

poppysarah

TLC_Queen wrote: »

It has just been reduced from £120k - £125k so we would possibly like to offer £100k

would have to get a loan for the remaining deposit (5%) and fees.

Getting a loan to top up the deposit is slightly insane. The more you owe the potentially more disaster you're in.
Why not save more money (and has he put away all the money he needs to for his tax bill AND what they demand on account for the next year? Does he have an accountant? Usually you'd need 3 yrs accounts for a mortgage application.

The fact you've saved so little (Unless I have missed you having a huge chunk of savings) is a worrying sign and I wouldn't lend you a bean until you got some serious savings put away.

Blacksheep1979

Mortgage co will ask where the deposit came from and if it's from a loan they will more than likely decline.

TLC_Queen

Thanks everyone, I thought that is what you would all say... Suppose we better get some savings on the go! Not quite sure how!!