Help... Mortgage advice for someone with no clue.

debtfreedaisy

Hi would appreciate some advice on a couple of things. Have recently been given notice that I will lose my rented house in just under six months time... currently live alone with my son but want to move in with my lovely boyfriend.

Looking around the area I live in rental prices have gone ridiculous and we are hoping to be able to buy. Couple of things I guess... combined salary of just over £45000, no adverse credit history... though we have both lived out of the country (been in UK for two years now). We have no loan commitments and between us the only thing outstanding is one credit card of £3500.

Have no savings as such. But can probably scrape together about £4000 ish in the next six months. I have an endownment that could be surrendered for £7000. Also as a soldier my boyfriend is entitled to LSAP of up to £8500.

We have seen some houses valued at between £110,000 and £120,000. What is the likelihood of us getting a mortgage at this time? I know things are tricky at the moment but hoping his job security might help.

Thanks for any advice.

Evilm

Well 3X salary would be a conservative estimate on what you could get as a mortgage. So that could be about £130k should be possible for a mortgage on that side. However this will be a very significant amount of money each month for the payment and may not be affordable to you.

You seem to have about £19k which is more than the required 10% deposit usually required these days. That could mean a maximum price of £145k.

(I do not however know how LSAP would be considered for the deposit and that would also have to be considered as part of how much you could afford each month for the mortgage payments)

In pure hypothetical figures I would say it is feasable. However be very clear about how much you do have available for the deposit (and costs) and every month for the mortgage payment. Go and see an advisor and see what rates they would suggest you would be likely to get and what that means for monthly payments and total mortgage you would be offered.

I know some will disagree but even if they say you could get and afford to pay for a higher mortgage I would go for the security of a smaller house with a more affordable payment. If I hadn't done this when we moved we would have had to sell our current house by now due to me being out of work for several months in the current recession.

(all said above is not from a professional at all, please seek proper advice)

GMS

debtfreedaisy wrote: »

Hi would appreciate some advice on a couple of things. Have recently been given notice that I will lose my rented house in just under six months time... currently live alone with my son but want to move in with my lovely boyfriend.

Looking around the area I live in rental prices have gone ridiculous and we are hoping to be able to buy. Couple of things I guess... combined salary of just over £45000, no adverse credit history... though we have both lived out of the country (been in UK for two years now). We have no loan commitments and between us the only thing outstanding is one credit card of £3500.

Have no savings as such. But can probably scrape together about £4000 ish in the next six months. I have an endownment that could be surrendered for £7000. Also as a soldier my boyfriend is entitled to LSAP of up to £8500.

We have seen some houses valued at between £110,000 and £120,000. What is the likelihood of us getting a mortgage at this time? I know things are tricky at the moment but hoping his job security might help.

Thanks for any advice.

The figures you have quoted make it look possible.
As you say you have no clue you really should seek some professional advice from a 'Whole of Market' broker.

The LSAP your boyfriend may get would be treated as a credit commitment by a lender, as would the credit card you have. Do you pay for childcare? If so this would also be taken into account.

If you can get the LSAP in addition to your 11k available deposit it would help the interest rate.

You may also wish to speak to your bank to see what they could do for you. Do this as well as speaking to a 'Whole of Market' broker as this would give you a better idea.

herbiesjp

There are lenders that can look at Forces personnel more favourably, as they are more flexible in the underwriting.

The deposit will be the main issue - but as long as you have the 10%, you should have options available, assuming no major debts and adverse credit as you state.

debtfreedaisy

Thanks for your replies. To answer a couple of the questions, no there are no childcare fees as I have a great supportive family - the odd bunch of flowers seems to be enough! Have booked in with a whole of market broker and will also speak to my own branch - to be honest hadn't given them a second thought. Thanks again, a very scary thought entering the housing market in the current times so all your answers have helped ease some of my fears..... fingers crossed all goes ok with broker.