Affordability rent vs mortgage

Imani

Hi

Just thought I would ask you guys a question about rent and mortgage. I currently pay about 445 rent for a 2 bedroom terrace. I have a low income but manage ok. I do not have any major debts .

I have calculated roughly that what I pay in rent is roughly a 90k mortgage. Now because of my income I could only get about 50-60k at a stretch for a mortgage. so even with deposit for a standard 3 bed semi which is the minimal space family now need I am stuck

Do any banks do mortgages on affordability in the sense that would they consider the fact that i have paid my rent at this amount for the last 5yrs with no issues and allow me a mortgage to reflect that.

I do wish I went self certified before the market crashed.

Be nice. What are my best options. To get a bigger deposit will take me about 5-10 yrs unless my income grows significantly. Kids are primary age so cannot work more than 30hrs p/wk unless I do but that extra money would be swallowed up in childcare plus more.

BitterAndTwisted

You''ll never qualify for a mortgage for the kind of property you have in mind while you are on such a low income. What is the amount of deposit you have saved?

Tigsteroonie

Same situation here - £450/m rent afforded out of our income, but nobody will give us a mortgage with that level of repayment because the income multiples work out too low. I'm hoping to have £30k for a deposit at some point in the next couple of years, but still doubt we could get a house of the same space (2bed semi).

Imani

BitterAndTwisted wrote: »

You''ll never qualify for a mortgage for the kind of property you have in mind while you are on such a low income. What is the amount of deposit you have saved?

right now about 5k.

Imani

Tigsteroonie wrote: »

Same situation here - £450/m rent afforded out of our income, but nobody will give us a mortgage with that level of repayment because the income multiples work out too low. I'm hoping to have £30k for a deposit at some point in the next couple of years, but still doubt we could get a house of the same space (2bed semi).

It is so sad. in the sense they say you cant pay that in a mortgage but you can pay it renting privately. It makes no sense at all. I have looked at the homebuy schemes and they are so over subscribed I dare not hold my breath

Belnahua

Tigsteroonie wrote: »

Same situation here - £450/m rent afforded out of our income, but nobody will give us a mortgage with that level of repayment because the income multiples work out too low. I'm hoping to have £30k for a deposit at some point in the next couple of years, but still doubt we could get a house of the same space (2bed semi).

I would be very appreciative if you didn't broadcast our private affairs, financial or otherwise, on a forum on the internet. This information is private and should not to be published in the public domain, whether it be Facebook, this site, twitter, or anywhere else.

Le_Chuck

Imani wrote: »

It is so sad. in the sense they say you cant pay that in a mortgage but you can pay it renting privately. It makes no sense at all. I have looked at the homebuy schemes and they are so over subscribed I dare not hold my breath

You have to bare in mind that rates are at all time lows. What if rates were to rise, then the mortgage would be unaffordable. Thats why the salary multiples are what they are, to allow a bit of leg room in the event of a rate rise

Rebob

Ask at your local housing office. My brother bought a 50% share in a modernised terrace as he had the same problem. As it is an older property the price was much lower than the new build shared equity schemes. He has the option to buy the rest of the property when he wants to and his rent is only £120 a month on the 50% he does not own.

Imani

Le_Chuck wrote: »

You have to bare in mind that rates are at all time lows. What if rates were to rise, then the mortgage would be unaffordable. Thats why the salary multiples are what they are, to allow a bit of leg room in the event of a rate rise

I understand your point.

Imani

Rebob wrote: »

Ask at your local housing office. My brother bought a 50% share in a modernised terrace as he had the same problem. As it is an older property the price was much lower than the new build shared equity schemes. He has the option to buy the rest of the property when he wants to and his rent is only £120 a month on the 50% he does not own.

Thank you for the suggestion. I might speak with the HomeBuy people again. My local authority always tells me to speak to them

Now if my local authority gave me one of their properties to rent I could save a much bigger deposit