What do I need to do to be eligible for a mortgage?

Buffythedebtslayer

I have always dismissed it as impossible and so not thought about it much which seems silly now.

What do I need to do/have to get a mortgage?

Am 34, single, steady job. good credit rating, just under 9,000 in debt. That will be paid off by the end of this year.

I need a deposit? would like a house, 2 bedroom, I live in the south.


Thank you for any help and suggestions

Buffy

_Andy_

You will need (at minimum) 10% deposit, plus fees, moving costs, contingency, etc etc

sammyjammy

Yes you need a deposit of at least 10% as well as money to cover the buying costs - solicitors, possibly stamp duty etc.

What is the cost of the kind of house you would be looking at in your area, I would think you are looking at an absolute max of around 120k but go on some of the lenders websites and their calculators will give you more of an idea.

Definitely get rid of the debt ASAP!

Buffythedebtslayer

So I would need at the very least 12 grand. hmmm. ok. plus other costs, which I would guess vary according to the house and situation? As a ballpark figure would another 5 grand be a good idea?

thank you for your replies, am a complete novice.

xxx

sammyjammy

Yes would probably cover generic costs, can you get a 2 bed house for c. £130k where you live though?

Buffythedebtslayer

sammyjammy wrote: »

Yes would probably cover generic costs, can you get a 2 bed house for c. £130k where you live though?

Do you know I don't know. Never really looked. Never really even thought about it.

Ditto wrote: »

Also you will need furniture for your new house, unless you have some already. You can get 2nd hand furniture from freecycle or charity shops if you cannot afford new.

I think I could manage furniture have some stored.........

Thank you very much for your replies xxxxx

katsu

Buffy,

_Andy_ gave some good advice. Have a look at house prices, save for a deposit, then go and see an IFA (I think they are worth it). They can advise you on the best mortgage to go for.

I'd suggest you could have less than £5k in extras, but it is a good amount. We needed extra money for the survey (not sure if this is now covered by the HIP?), money for legal fees (I think these are generally around £2k?), extra money for the mortgage in month 1 due to completing mid month. Also, you will have higher bills like council tax and utilities, so a float is very helpful.

Go for it You can use your DFW skills to save your deposit and then become an MFW.

cashbackproblems

Have you looked at how much a 2 bedroom would cost in your area, and if its 120k would you qualify for a mortgage based on your income/savings? Its worth popping into a few banks and getting a mortgage quote and they will show you roughly what your monthly repayments etc would be. I would recommend Natwest+Santander for FTB's as they are currently offering 4/5x salary to these people.

Legal costs are generally 1k max. 5k would be more than enough for these fees and furniture.