£20,000 mortgage on min. wage job?

nickygen

Hi all,

wondering if anyone could advise me on whether i'll be able to get a mortgage of £20,000 on a full time minimum wage job.

I want the £20,000 to buy out my step dads share in my mums house (who passed on the rest to me), i therefore have equity in the house of around £110,000.

Thanks

Nick

GMS

You may find that 20k falls below the minimum borrowing for many lenders but if you are employed full time on minimum wage your income could be enough subject to your circumstances.

Speak to a whole of market broker to get some options

nickygen

thanks for the reply! where would i speak to a whole of market broker?

getmore4less

First direct say they lend down to £10k

http://mortgages.firstdirect.com/mortgages-explained/repayment-mortgage

GMS

nickygen wrote: »

thanks for the reply! where would i speak to a whole of market broker?

You would not necessarily need to if you are confident of what you are doing. There are many on this forum, check locally, use google etc to find one.

What exactly is your situation? You say property passed to you. Was this due to a death? When did you get the share of the property?

Many lenders would require you to have owned the property for 6 months before refinancing but there are some who will do it before the 6 months.

nickygen

thanks very much for the replies,

the inheritance was due to my mothers death, i have now been in possession of my stake (13/16 of a house valued at 140k, with my step father owning the remaining 3/16 and the house being paid for fully) since it was passed to me on my 25th birthday (10 months ago) although my mum died over 2 years ago it was held in trust till i was 25

thanks

GMS

You will be looking for a remortgage in that case.

You will be of minimal risk to the lender due to the low loan to value (I am assuming you are mortgage free at present)

Do you have any loans or credit cards? Do you have any credit problems i.e missed payments, CCJ's or defaults?

It would be worth speaking to your current bank to see what they could offer you. Consider more than the rate alone. With a low loan such as you are looking at if the arrangement fee is £995 for instance you may be better looking at a product with no arrangement fee but a higher interest rate. Could be cheaper overall. Also a free valuation product should be considered as a valuation can often be £300 plus.

You are in a great position from the banks point of view so it is omportant you get the best deal for you.

nickygen

thanks GMS - good advice

i am mortgage free and have no credit cards however i am working to try and get my overdraft cleared (500 pounds), and missed one payment on my van insurance monthly direct debit (last June) as i was a few pound short - this was rectified quickly do you think that'll be a problem?

also will the bank consider lending to me if i'm only working part time?

thanks very much

nick

GMS

What is your income? A lender will need to ensure that the mortgage is affordable so as long as the amount is enough the fact that it is part time would not necessarily be an issue.

Missing a DD may have an affect but it is impossible to say. Credit scoring would most likely be done but you have a very low Loan to Value which would help. Get a copy of your credit report from Experian and Equifax. £2 statutory reports are sufficient.