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Minimum requirements to get a mortgage
Dexter101
Forumite 8 Posts
I currently live with my parents but would really like to move out, ideally by buying my own flat or house.
I currently earn £11,400 gross, £14K net.
I have around £12.5K in savings.
Obviously not enough to buy a house.
I'm crossing my fingers that I'll move up the ladder a bit in my current job in about 6 months where I think I'll have a salary will increase of ~3K. That's a maybe though.
Alternatively if I have to stick with my current wage, how much more should I save before I could qualify for a mortgage.
Is shared ownership worth looking at otherwise?
I currently earn £11,400 gross, £14K net.
I have around £12.5K in savings.
Obviously not enough to buy a house.
I'm crossing my fingers that I'll move up the ladder a bit in my current job in about 6 months where I think I'll have a salary will increase of ~3K. That's a maybe though.
Alternatively if I have to stick with my current wage, how much more should I save before I could qualify for a mortgage.
Is shared ownership worth looking at otherwise?
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Replies
If your earnings don't increase then I would suggest saving enough for a 90% deposit on a rabbit hutch and then borrowing the rest.
Anyone got any sensible answers just so we've got a good mixture?
Nice comeback.
Your chances are slim. How much is a likely property going to cost? Say a lender will give you 3 times salary - which is a lot these days - you're looking at around £42k plus your deposit. Will £54k buy you anything? Or is it £20k short or a £100k short? Then you can start to figure out your options and how long it might take you. An extra £3k salary may get you another £10 mortgage - is that enough?
Don't know much about shared ownership but worth looking into. Or buying with a (long term) partner to increase the salary the mortgage is based on.
If you're massively ambitious, buy a hole for £54k (if they'll still lend it to you), do it up Sarah Beeny style over time to make it nice enough to live in - or sell. But it's not for everyone. Certainly not me.
For better advice than from a bloke on the internet, go and chat to a mortgage advisor. Even just the one at your local bank - you don't need to get the mortgage through him (and I'd recommend you don't) but would give you an idea of where you stand.
Good luck with it.
You can't really be sensible.
In a job which based on full time hours earns you under £7 per hour and you want to buy a flat and all the associated living costs that go with it.
You haven't really planned this out have you?
If you have saved what you have from earnings then keep doing that.
Obviously I'm in a better position now but is it good enough?
I've found a flat for £74K which looks suitable. As I now have over 20% to place a deposit, am I in a position to approach a mortgage lender or should I continue saving / try to increase my salary?
I'd get a part time job in which you earn at least £200 per week. You'll be able to afford it then.
Have you considered all your other outgoings, council tax, fuel, TV licence, water rates, internet,insurance,communal charge(in a flat),food, shopping (bog rolls,condoms, etc) you are obviously young and I would hate to think your dash for freedom ended up in you living on beans.
And I'd check your use of gross & nett too.
I've had a look at whether I could afford that if I rented and I just about could so I imagine I would have similar outgoings if I bought.
Aye, I just noticed I got that the wrong way around in the OP.
I'm in a similar situation you are in, live with parents etc, same wage..
I have a larger deposit 33k..
I think its 3.1/2 or 4 times your gross salary you can lend so thats 68k..
I'm looking to buy a house priced at around 85k and then put my deposit down. Looking at the total outgoings i've got all worked out, it's going to be tight so i've decided to wait a bit and save more and maybe house prices drop a little.
I think you're best advice mate is to wait a while and save more money.
In addition to the outgoings Blobby pointed out don't forget the unexpected repair bill or the holiday you might want.
Maybe post a list here of what you think you may need to pay out each month.
Dont forget mortgage rates are only going in one direction (IMHO) UP!