First time buyer advice

timorridge

I currently rent the house I live in and just happen to see a nice house for sale which is round the corner. It is important that I live near to work to keep travel costs very low (I walk) although I have a car which is paid for. I wonder if I have a chance of getting a mortgage but obviously will see banks expert but what do you think?

I pay £475 on my current rent and after ALL outgoings including petrol and a set amount to spend per week £30 I have about £200 left. I have around 3k ish saved in various savings accounts and it included my £800 bond (if I get it all back!). I earn £18000/ £1200 per month and regulary get up to £90 extra shift rota and have been in my job 10 years.

If I was to buy the £80,000 house on say 95% mortgage, i would have to take out a 5k loan to cover that and the savings for the fees/surveys etc. Can you still get 95% loans and if I get a mortgage with the bank i have a account with can you get any better chances?

pivotalgubbins

timorridge wrote: »

I currently rent the house I live in and just happen to see a nice house for sale which is round the corner. It is important that I live near to work to keep travel costs very low (I walk) although I have a car which is paid for. I wonder if I have a chance of getting a mortgage but obviously will see banks expert but what do you think?

I pay £475 on my current rent and after ALL outgoings including petrol and a set amount to spend per week £30 I have about £200 left. I have around 3k ish saved in various savings accounts and it included my £800 bond (if I get it all back!). I earn £18000/ £1200 per month and regulary get up to £90 extra shift rota and have been in my job 10 years.

If I was to buy the £80,000 house on say 95% mortgage, i would have to take out a 5k loan to cover that and the savings for the fees/surveys etc. Can you still get 95% loans and if I get a mortgage with the bank i have a account with can you get any better chances?

As present, you haven't got a hope I'm afraid. You would need a 10% deposit as a minimum (so around £8,000) plus money for any relevant fees. If you took out a loan this would no doubt impact on the affordability of any mortgage, therefore you wouldn't get the multiple you require (which is 4 times salary). In any case, it'd hardly be recommended!

Save that extra £7-8,000 to cover the full deposit and fees and go from there, good luck!

timorridge

Yeah, thinkin about it maybe not the best idea. I will look at the idea in 1-2 years time. There will always be houses for sale! Thanks

herbiesjp

You would not be able to take out a personal loan for the purpose of using as a deposit.