First Time Buyer

tessy_t

Im 27 years old and am still living at home paying £100 per month rent, have decided it is about time i move out so have an appt with my bank next week to discuss a mortgage application, and Im worried they may laugh at my financial situation and send me packing!

I earn just over 17k and am in a long term job with a temp agency, my take home wage per month is £1136 and my only ougoings are rent and £250 which is the cumulative total for two seperate loans. One of which I will have finished paying off next april, leaving me with just £80 plus rent as monthly outgoings. I also have £1700 outstanding on a credit card which i am currently trying to pay the bulk off each month, i have tried moving the balance to 0% but have been rejected a few times.

So as you will have guessed I don't have any savings so no deposit for a new place. A friend has reccomended a financial adviser who i will soon be making an appt with, but as my job is temporary how will this affect my lending? I have though been more or less in full time employment for the last 8 years which my bank statements can verify.

Can anyone tell me what sort of chance i stand with a mortgage, I know I can afford to pay a sensible amount each month, but as i dont have a deposit will i find it difficult being accepted?

Thanks
Tessy

Stubbsy05

Well I'm on £20K with £1500 debt. I was able to borrow up to £96K. I saw a free mortgage advisor in a local estate agents. This particular chap was brillant, no pressure and typed in my details and was able to view all thedifferent lenders straight away.

The mortgage I got is for £83K paying back £400 a month.

If you are going for a 100% mortgage then your mortgage interest is going to be more.

Try and get a 5% deposit if you can. I had to sell my car for £4500 and buy a run around for £500 to free up £4000 for my deposit! Interest rates are cheaper though.

Oh and no bank should ever 'laugh' at your fiancial situation! Good luck:D

richgirl

17,000 X 3.5 = £59,500 Which is what you should be looking at in mortgage terms, offcourse the crazy market is offering X5 or even higher i.e. £85,000. But even that is not goign to buy much in todays market and if you do take that route, you leave yourself open to reposession if you are unable to service such a large debt.

You may need to take the view that, your not financially ready to buy. Instead you should start saving, aiming at £6000 per year, which will give yuo a deposit of £18,000 in 3 years, by which time you may be on a higher wage and thus be able to get a much better and safer deal !

mdb99jh

richgirl is spot on. seconded.

tessy_t

Thanks for the advice guys, not sure if i want to live at home another 3 years, maybe i coud wait another year but that's about tops. have been looking around my local area, can get a 3 bed semi for 65k, not the best area but it would be a start and a first step on the ladder which is the priority for me right now.

pawpurrs

If your single why do you need a three bed semi? Why not go for a one bedroom in a good area?

tessy_t

The particular 3 bed semi i was looking at was an ex local authority house ineed of moderniastion, thought a 3 bed semi would have better selling power if in future i wanted to move on, and also 1 bed flats i have seen so far are new builds and very modern and are around the 65k mark also. .