Am I likely to be accepted for a mortgage? Any help appreciated.

dannyp76

Good afternoon everybody,

I am looking to get a place of my own and I am in the process of saving a deposit. I have been reading that 90% LTV mortgages are still very difficult to obtain at the moment. I was just wondering if anyone out there with a knowledge in mortgages would be able to tell me if I am likely to get accepted for a mortgage using the details below.

My basic wage is £36,287pa (£2253 net pm) plus I usually get around £100-£150 pm bonus. Last financial year I earned £38,600.

I will have no debts when I have saved my deposit.

I don't know my credit score but I have always been accepted for loans and credit cards when I have applied and I have always paid them on time, so I would assume that it is good.

I will have a deposit of £11,000, looking at purchasing a one or two bedroom flat/house for around £95,000-£110,000.


I checked out quite a few lenders websites and when entering a purchase price of £105,000 with a £11,000 deposit I am getting quotes for mortgages of around £540 - £590 per month. Is that realistic?

Also I have been reading that some lenders have started doing 95% LTV mortgages. Could that be an option for me??

Any help would be appreciated.

Thanks

Daniel

DannyboyMidlands

You might be able to get one but they'll shaft you on the rate. With your income you should be able to save £1k + per month. I'd keep doing that untill you're nearer a 25% deposit.

GMS

Saving £1,000 a month will take approx 18 months to do by which time the rates for which the OP may be 'shafted' today could look competitive or even cheap.

90% mortgages are out there so may be worth a look at if you are ready to move. If you had a bigger deposit then rates generally get better but who knows what the next 18 months will bring.

DannyboyMidlands

"who know's what the next 18 months will bring" is a valid point and even more reason to save a more substantial deposit. High LTV "honeytrap" mortgages are crazy in a falling market.

However mortgage advisors do need the business so if you're feeling charitable.............

dannyp76

DannyboyMidlands wrote: »

You might be able to get one but they'll shaft you on the rate. With your income you should be able to save £1k + per month. I'd keep doing that untill you're nearer a 25% deposit.

I need my own place asap. I'm living with my parents at the moment and it is not practical and I need to be out of there as soon as I can get a mortgage.

I know the rates are going to be a little higher with a smaller deposit but I just wanted to know if considering my circumstances is it likely for me to obtain a mortgage with a £10,000 deposit.

With the monthly mortgage payment quotes that I have got from lenders websites I would still be able to save probably £500-£700 a month and still live comfortably which I can put into the mortgage at a later date to help me obtain better rates if I need to.

DannyboyMidlands

Then yes, you probably can.

Doshwaster

In addition to your deposit, you would also need approx £1000-1500 for legal fees (mortgage fees and solicitor) plus moving costs, any house setup costs plus a buffer for the unexpected. I burned £5000 within 3 months of buying my house last year without noticing.

Your salary is about the same as mine. I would suggest going on a crash cash diet for the next 6-9 months as you house hunt - cut out everything but essential spending and save every possible penny. You should be able to put away about £1000 a month. It's some short-term pain for some long-term gain.

East_Shore

Based on your income you shouldn't have a problem borrowing what you need (subject to credit score). If you can afford a 15% deposit this will open up more lenders and slightly better interest rates compared to some 90% deals if you can't wait and save for a 25% deposit (is it really that bad with your parents??!!) ;-)

dannyp76

East_Shore wrote: »

Based on your income you shouldn't have a problem borrowing what you need (subject to credit score). If you can afford a 15% deposit this will open up more lenders and slightly better interest rates compared to some 90% deals if you can't wait and save for a 25% deposit (is it really that bad with your parents??!!) ;-)

No its not that bad but I moved out from my parents house 10 years ago so I am used to my independence. I moved back a couple of months ago for the sole reason to pay off my debts and save a deposit for a house.

dannyp76

Doshwaster wrote: »

In addition to your deposit, you would also need approx £1000-1500 for legal fees (mortgage fees and solicitor) plus moving costs, any house setup costs plus a buffer for the unexpected. I burned £5000 within 3 months of buying my house last year without noticing.

Your salary is about the same as mine. I would suggest going on a crash cash diet for the next 6-9 months as you house hunt - cut out everything but essential spending and save every possible penny. You should be able to put away about £1000 a month. It's some short-term pain for some long-term gain.

How long did the whole process take, from the time you started looking at properties until you actually moved in??

rubyr

we looking at a house 2 weeks ago, got a morgage in principle in a day, the formal offer letter for it 2 days letter,offer in and we get keys 15th july so all quick, that was a 15 percent deposit :-)