Need Advice

Mediumhorse

Hi there first time user here. I wanting help to get a Mortgage. I live in london working as bus driver earning 22k a year I am looking a t what I can afford and its not a lot. I am looking at a studio for 165000. Would I be offered this much by myself ?

Many Thanks for you Help

Medium Horse

HelpWhereIcan

Not sure i can think of a lender who will do 7.5 x your income. Would you need to get a 100% mortgage or do you have a deposit.

As a rule of thumb, I would say the max would normally be in the region of £110,000, but this will obviously depend on your circumstances.

One lender has recently introduced a scheme that is effectively part mortgage, part shared appreciation scheme that, on the face of it, may get you a property of up to £150,000 ish, but you would need a minimum of 5% deposit.

Failing that, is there anyone you can share with, have you investigated shared ownership schemes etc etc

Post some more and someone will be able to help

Hope this helps

Mediumhorse

Thanks for your reply HelpWhereIcan . Could l get100% Morgage then? I have no debts and have a small amount saved to help with the costs. Just fed of living in house share. I am looking to move to Bayswater. A freind of mine told me that you can borrow as much as you like with some lenders.

Any advice you have would be most welcome


Many Thanks

Mediumhorse

:T

HelpWhereIcan

I would suspect that the most you would be looking at for a 100% would be aroung the 100k mark. That would mean that, yes, you should have a deposit. Choice of lender, deal and amount available all improve the larger your deposit is.

Mediumhorse wrote:

A freind of mine told me that you can borrow as much as you like with some lenders.

If he could point me in the direction of the lenders he is referring to, there is a lovely manor house near me I would love to buy!!

I am sure that he will have been referring to the fact that lenders are much more generous now, but they do still all have maximum loans based on income and/or affordability.

Look to see what deposit you can get together, find someone to share with, investigate shared ownership, look at up and coming areas near where you want to be, ask builders what incentives they may have for first time buyers, is there anything available off plan nearby? etc etc

Have a word with a good, local broker, but above all read the forus here regarding mortgages and buying a house.

Good Luck

Mediumhorse

Hi there again Thanks again for your reply yet again. just trying to find a way on the property ladder. I thought 100% mortgage could be for any amount?


Thanks for your help inadvance.


Mediumhorse

MortgageMamma

have you considered shared ownership?

Careful_girl

There are cheaper areas than Bayswater. I think you may need to adjust yoour search somewhat. Then again I haven't been looking for property up there for a while.
All the best,
CG.

maryjane01

Have you considered not Bayswater? Many people rent in areas like that for the lifestyle because they are too expensive to buy in (and many of those people you will find earn a lot more than you). Looks to me like a case of champagne taste and home brew beer budget. I don't think anybody buying a property in Bayswater today has a salary as low as 22,000. Maybe you need a bit of a reality check. South London you might be able to afford.

sarahlouise210

Really the best bet would be to move to another town..be a bus driver there and be able to afford a 2 bedroom house.....but hey... thats in an ideal world

ratcrazy

yep - move oop north, my hubby is a bus driver and we are buying a three bed house.

seems unfair in London re wages and house prices. hope you get your own place:)

TangentMan

Mediumhorse wrote:

Hi there again Thanks again for your reply yet again. just trying to find a way on the property ladder. I thought 100% mortgage could be for any amount?

100% refers to the Loan to Value ratio of the property (i.e. you want to borrow the entire value of the property). There is still affordability (i.e. if they leant you the vast quantities of cash to buy Buckingjam Palace, could you afford the repayments).

And this is crucial point, the more you borrow the higher the risk. At 100% LTV the lender is taking a quite high risk, since if you default and they have to take posession of your property, they are likely to offload for quick sale, probably only getting back 80% of the value - they are not property companies and therefore will not hold out for the maximum amount.

If you are having to go to 8 x income, then the risk is higher still that you might not be able to pay.

The higher the risk, naturally the higher the cost. You won't get the rate advertised in the window of your nearest high street bank, for example.

So, remember, it is not just how much you can borrow, but how much you want to borrow and want to pay.

However, i lived for a short while (all expenses paid courtesy of a job) in Bayswater and it was a great place then (early 90s). So i can sympathise. But the Central line goes to Queensway just up the road and that central line will take you to cheaper areas.