Help needed

leedsacca

Hi all, hope someone can help. I am FTB looking to buy on my own pref a 2 bedroom so I can rent a room out to help pay the mortgage.

I still have an outstanding loan of 3.5k+ which I pay 155 a month off with the household bank (dont laugh it was a stupid mistake when I was at Uni - started with a laptop from dixons then got another on top to pay credit cards off)

I am currently training to be an Accountant on 14k a year and was wondering how much a lender would normally give me? as 3x salary might just find me a nice cardboard box.

Cheers in advance for any advice

UK007BullDog

Well, unless you have a huge deposit there is no way really. Some lenders like Scottish Widows do larger income multiples depending on income, so the higher the income the higher the multiples. In your case with £14K I cannot see them giving you more than 3x though.

How far along are you with your training? Is it for a chartered certificate?

Tustastic

You don't sound as though you are yet in a position to buy a property, leedsacca, unless there is a relative in the background offering to pay a very, very, very substantial deposit on your behalf.
Can't find the link at present, but there is an article on the site about renting versus mortgage. Martin doesn't favour having a mortgage unless it is in your best interests.
Why not concentrate for the next couple of years on
- qualifying as an accountant
- getting a job at a higher salary
- becoming debt-free
- building up savings, including checking out the 'bit on the side' thread regarding extra income
- and last but not least, getting a life and having some fun in an MSE way.HTH:)

leedsacca

Thanks for your response, I do have some money coming from some inheritance which will wipe out my loan. I have just started the ACCA therefore seeking employment on a higher salary when the company are paying for the course may be out of the question. I just dont really want to rent as I feel its throwing money at something which wont be mine at the end of the day.

grey_lady21

One of the lenders, (cant remember who) does take situations like yours into account, someone i know was a trainee barrister in the same boat who managed to get more based on a prediction of future earnings.
Some also allow you to take income from renting a room out into account.

Obviously you dont want to overstretch or anything but if you have a deposit and your confident that you can afford the repayments + all the other bills, outgoings etc etc then surely it's worth talking to a broker?

Madjock

You're not throwing money away, you're putting a roof over your head.