want a mortgage but only have a part time job?

mug51

Hey,

Well i'm 24 and will be homeless when parents sell up (expected within 2 months), yeah I know being 24 I should have moved out anyways.

Right, I have always said never to rent (hence why I haven't moved out), so would any lenders give me a mortgage when I earn £500 on my contracted hours a month which would be £6k annual income. Overtime does improve my income but it's not always guaranteed to be available (year to date with overtime my income is £9.5k).

So in summary is a mortgage possible with £6k annual pay plus £25k deposit?
I haven't got the number I'd like to borrow just want to know if it is possible and how much would be the maximum.

Thanks

Meeper

I expect that with a £25k deposit you could reasonably expect to borrow around £12,000 with that level of income. Most lenders have a minimum mortgage of £25k.

Good luck.

mug51

thanks Meeper much appreciated. i imagine it would be difficult to presuade the lenders though

Svenena

Even if your mortgage payment was very low I'm not sure how you would afford to pay for everything else after your mortgage on only £500 a month - council tax, utilities, groceries, repairs, etc.

mug51

Svenena wrote: »

Even if your mortgage payment was very low I'm not sure how you would afford to pay for everything else after your mortgage on only £500 a month - council tax, utilities, groceries, repairs, etc.

yeah you are right, just a quick how i could spend my money every month
council tax - £65
utilities - £100
food - £100
repairs - hopefully none
mortgage - £235
savings - none

but then if i were to rent i'm in the same situation?

xyz123

your best option is to get full time job or rent somewhere cheap to save more. its not a disaster if you dont own a house at age of 24. much better to wait for couple more years than to land in financial difficulties...

maninthestreet

So you already have a mortgage????

mug51

maninthestreet wrote: »

So you already have a mortgage????

oh no, i was just speculating how i could spend my monthly pay, which does sound optimistic after a second look

Meeper

Home Ownership is over-rated.

Svenena

I think you've missed out a lot of other expenses that could arise, eg travel costs, presents, having a social life! Hoping for no repairs when you own a house is unrealistic - what if you have to replace a washing machine or oven or something? Or a pipe bursts, or the boiler breaks down? If you rent, these costs are generally covered by the landlord, which is one way in which renting is cheaper. You also haven't budgeted for insurance (buildings and contents).

It sounds like you have to find somewhere to live, so renting seems to be your only option. You need to investigate what benefits you could be entitled to, such as working tax credit and local housing allowance - I'm not sure what the rules are for part-time workers. Obviously a full-time job would help, but I appreciate these aren't easy to come by at the moment. Renting a room in a shared house seems like the most likely option for you.