Would we get a mortgage?

aidy_2

Hi all,

I've been reading this forum as a lurker for a while, and now it's time to ask a question of you good folks.

My girlfriend and I have been living together for two years now, and would like to buy a place. I earn 49k per year, and her about 30k. The place we are currently renting costs us £650 month, plus bills.

Now the interesting part... We don't have a deposit, so would need to get a 100% mortgage. In addition, I currently have 23k of debt, which I am paying 1k per month to get rid of. My credit rating is about as good as it gets (recently checked with Experian) and hers is unknown but neither of us have ever missed payments or had any other problems.

In an ideal world, I would want to wait until my debt is paid off and we had built up a deposit, but we are climbing up the wall in rented accomodation and want our own place.

We are going to see a mortgage advisor, but would we likely be able to get a 100%LTV on a place of about 180k with my debt?

AndrewSmith

Hi,

Looking at the raw figures it would seem possible. However there are a number of things that will impact the overall acceptability of the case to a lender.

1) How your income is made up and how long you have been in your current jobs.

2) Credit status and history (as you say yours is good but G/F unknown).

3) Type of property you are looking at buying.

4) What the 23k of debt is made up of and how long it has to run, and what rate you are paying etc.


The lender is likelty to assess the overally affordability of the case and, understandably, is going to be wanting demonstrable evidence that the payments to the new mortgage etc will be affordable and sustainable with that sort of level of debt.


Off track a bit :

Where abouts in Southampton are you? I used to live in Park Gate, Maybush and Romsey?

Andy

MortgageMamma

If you are both employed in stable jobs with good credit scores and the figures you quote are basic salaries you could borrow about 230 or more off a particular lender, but the rates arnt great. 5.99%

aidy_2

Thanks for the replies!

To answer some of the questions:

I've been in my job for eight years now (permanant, full time) my partner for just under two years (full time contract)

We'd ideally look for a house, but a flat with balcony would be acceptable. Two bedrooms at the least. I wouldn't want to buy a flat in central Southampton as I believe oversupply is going to hit the market in the medium term however. Question - what effect will the type of property have to any offer - what's more attractive to the lender?

The 23k of debt is broken down as £1500 overdraft faicility, 12.7k flexible loan @ 8.9%, 5k bank loan @ 6.9% (9 months left), 5.3k credit card @ 4.95%. I'm currently snowballing all this to get it paid off as soon as I can.

And finally, we are currently in Ocean Village, though I've previously lived in Highfield as well.

MortgageMamma

you may be lucky and the loan with nine months may not be included because of the short tem and credit cards arnt usually counted with one particular lender. As for security on property. if you buy a flat make sure its not a freehold and is not on top of commercial premises. MOst properties that are well constructed and made of standard materials lenders are happy with

MortgageMamma

PS - the guy whose posted prior to me, andy smith just happens to be an excellent advisor. I know he is snowed under with work at the moment but he's close to you and is one of only 2 advisors in the south of england I would recommend!

Sorry if you feel this is unsolicited advice, just trying to help. He knows much more about property in southampton than me as I think he lived there for 10 years or so.

MM

Tomthumb

Can't help, but my cousin used to live in ocean village (totally useless piece of info there )

AndrewSmith

Whatever happened to Canutes Pavillion?

aidy_2

Just equifaxed my girlfriend, and it came out with an excellent credit score ;-)

AndrewSmith: Canutes Pavillion was pulled down about three years ago now to make room for a new Wilson Bowden development of apartments and retail space, which was due to go up in two phases. Phase one has been complete for about a year/18 months now and has not sold out. It includes a Pitcher and Piano bar/grill and another bar/restaurant.

Phase two shows no signs of starting, and I believe they have gone back to get permission to build a greater number of 1-bed flats rather than the planned 2-3 beds as in phase 1.

Allied with the huge number of other flat developments in the area (e.g. down by Town Quay) there seems to be way too many of these type of properties going up at the moment. Hence my reluctance to buy a flat in central Southampton.

P.S. after MortgageMamma's glowing reference I've submitted an enquiry on your website. Hope you have time to fit us in ;-)

MortgageMamma

Hey. I won't just recommend anyone you know. if AS doesn't do you a good job I will eat my own knickers in public.

AndrewSmith

Yup, got it thanks,

Will call you tomorrow or monday.

God I remember eating lunch regularly in some nice fish restaurant on the waterfront.

Los Marinos I think it was called or something like that. I remember the penny arcade with all the old slot machines in it too. Wicked.

Is the lighthouse boat still there?