Income multiplier query

aimingforadebtfreelife

Hi all, any advice greatfully received.

After 10 or so years I am now debt free, paid off a CCJ and this has dropped off credit file. The file is very healthy showing no missed payments in last 5 years and even my credit card keeps upping my limit so must be doing something right!! There is a nominal balance on it at the mo.

Am in rented at the mo (on elec roll) and looking for a mortgage but after hearing the horror stories on the news about income multipliers and tight lending I need some advice.

Here is my situation:

Wage £20k
Tax Credits £6K
Working Tax Credits £1k
DLA (for son) £4K
Carers Allowance £2k

Looking at house £115k and can manage a 10% deposit. Hearing the story last week after couple earning £60k joint were only being offered £130k by High St banks has made me feeling is this still not the right time to buy???

Many thanks in advance.

firstaspect

aimingforadebtfreelife wrote: »

Looking at house £115k and can manage a 10% deposit. Hearing the story last week after couple earning £60k joint were only being offered £130k by High St banks has made me feeling is this still not the right time to buy???

If you can save up for a 15%+ deposit it will definately help and get you a better rate.
My partner and I earn £50k joint and we just got a mortgage with Nationwide of £190k with no issues.

LilacPixie

aimingforadebtfreelife wrote: »

Hi all, any advice greatfully received.

After 10 or so years I am now debt free, paid off a CCJ and this has dropped off credit file. The file is very healthy showing no missed payments in last 5 years and even my credit card keeps upping my limit so must be doing something right!! There is a nominal balance on it at the mo.

Am in rented at the mo (on elec roll) and looking for a mortgage but after hearing the horror stories on the news about income multipliers and tight lending I need some advice.

Here is my situation:

Wage £20k
Tax Credits £6K
Working Tax Credits £1k
DLA (for son) £4K
Carers Allowance £2k

Looking at house £115k and can manage a 10% deposit. Hearing the story last week after couple earning £60k joint were only being offered £130k by High St banks has made me feeling is this still not the right time to buy???

Many thanks in advance.

How many kids do you have?? They also affect affordability. Not all lenders take benefits into consideration so you would be looking at a 104k mortgage on a 20k gross wage which I personally think you would struggle with.

herbiesjp

Looking at 90% borrrowing will limit the number of lenders/deals available.

You will probably be able to get a mortgage with a lender, but what you will need to do is make sure that the 90% mortgage will be affordable now and in the future.

Not all lenders take these extra income streams into account, or in varying amounts, so you will be better off talking this through a good whole of market adviser to make sure you do not harm your credit file with wasted credit searches to the wrong lenders.