Minimum requirements to get a mortgage 2 September 2010 at 7:09PM edited 30 November -1 at 1:00AM in Mortgages & Endowments 19 replies 28.9K views

paint

You also need to make sure you're accounting for the costs of buying. I'm in the process of this myself, and it's costing me around £1,000 for the Solicitor / searches / other legal costs, plus £550 for a homebuyers' survey.

Also, have you considered the costs of moving to your first home, including things like a bed, mattress, washing machine, fridge freezer, tumble dryer, sofa / chair, TV, other furniture; and also redecoration costs? If you have a look on Argos website it'll give you an idea of these costs.

I'd recommend you give it another 12 months of hardcore saving. I don't think house prices are going to move.

Good luck!

I wouldn't touch shared-ownership with a barge-pole.

Blobby8_2

paint wrote: »

I wouldn't touch shared-ownership with a barge-pole.

Why on earth not ?
The opportunity to maintain a % of a property that you dont own, heat it, decorate it, clean it, insure it, and pay for the privilige.

ViolaLass

**woody123** wrote: »

I think its 3.1/2 or 4 times your gross salary you can lend so thats 68k..

Borrow! At least understand what it is you're trying to do!

Dexter101

Thanks for all the replies, I still haven't bought but wondering what everyone thought of where I'm at now

I have £22K. Unfortunately I'm still on £16K, I expect to pick up £14K with overtime considered.

This is what I think my outgoings would be: (I could probably add a few more, I know)

Electric / Gas  £50.00
Water           £8.00
Internet        £15.00
TV License      £12.00
Food            £80.00
Telephone       £15.00
Maintenance     £75.00
Car insurance   £25.00
Car Tax         £5.00
MOT             £30.00
Car maintenance £40.00
Petrol          £60.00
[B]Total           £415[/B]

I had a look on Fool and entered my gross, deposit and outgoings and the result was "A provider may offer to lend you between: £33,060 and £46,835"

I think I would be happy with something for £60K. A look on HSBC mortgages seems to suggest a 4% mortgage with repayments of £200 p/m.

Seems doable to me, what does everyone else think?

chopper78

£60k doesn't buy much, so don't buy a house just for the sake of buying a house, otherwise you could potentially buy something you'll struggle to shift further down the line.

Suarez

Dexter101 wrote: »

I currently earn £11,400 gross, £14K net.
I have around £12.5K in savings.

Do you mean 11,400 net? 14k Gross?

Thrugelmir

Dexter101 wrote: »

Seems doable to me, what does everyone else think?

Keep saving. You are doing extremely well.

Suarez

Dexter101 wrote: »

Thanks for all the replies, I still haven't bought but wondering what everyone thought of where I'm at now

I have £22K. Unfortunately I'm still on £16K, I expect to pick up £14K with overtime considered.

I think you could get a 50k Mortage so I would be looking at places around the 70/80k mark.

Making offers of a maximum of 70k

Arrange a chat with a mortgage broker

mondello

Best thing to do it speak to your bank or an FA. the hardest part is going to be getting someone to agree to lend to you. I manage to pay my £73k mortgage on a salary of £16K. I was on a better salary when I took it out and unfortunately this has dropped due to redundancy. Once you have the mortgage it's doable providing you budget well and don't expect to buy all brand new furniture and the best of everything.

Keep saving - well done for getting so much put away, it all helps.