First time buyer mortgage help...

alexander_mitchell

Hi,Im after some advice before I venture on...

Im currently looking at getting a house, after clearing my car finance and selling my car.

Im currently on £14,000 basic and get bonus pay every month which makes it upto £19,000 in 6 months time that will go to £21,000.

I had a car on finance for £25,000 and have just sold it and cleared the finance owing which no takes me to £0 debt.
I recently did a credit check with experian,this came back at good which 890 points which stated my credit was good and finance is achieveable and that was with my £25,000 car finance.

I have always had finance on cars etc since I was 18 and now nearly 24,always paid credit cards in full every month and have never missed a payment on anything.
My car finance was £500 a month and previous finance before that was £300 a month paid in full every month for over 2 years.

I think I qualify for the goverment mortage schemes, however I have found my first dream home which is 5 mins walk from my work and has had a complete refurb nothing needs doing on the property!
The property is a 1905 built terrace house,2 bedroom.

It is priced at £125,000 but similar on the road are up for £120,000 I think they will accept around £115,000 ish.

I possibly can get a family member to lend me £7000. There has also been big hype about owners giving money to add to the deposit so may be able to speak to the owners about this.

I can also rent the second bedroom out to a friend for £300 a month.

Ideally in a years time my long term girlfriend would move in and added to the mortgage.

Im wondering if I stand a chance with a mortage and possibly get any goverment scheme help

in short.....

+ no debt outstanding
+£19,000 earnings which will rise to £21,000
+good credit history showing £300 paid every month for 2 years and then £500 paid everymonth for the past 6 months.
+always paid cards in full and have never missed a payment.
+qualify for goverment schemes
+fully refurb property that needs nothing.
+£300 2nd bedroom rent
+1 years time, long term girlfriend added to mortgage.
+possible £7000 family loan.

Sorry to waffe but im scared if I go to the professionals they will do pointless credit checks at the start and tell me rubbish.

Thanks
Alex

Peter_L

You don't mention what deposit you have for this purchase.

The only government schemes I can think of are the keyworkers schemes which allow a share for the remainder of the cost which you repay in x amount of years but as far as I know this only applied to newbuilds ? (I could be wrong though!)

You mention 'a loan' of £7,000 but this will be taken into account of your application unless you can prove this is actually 'a gift' if this is actually the case.

With your current salary (even taken into account your bonus) I doubt you will get a mortgage for the purchase price as it would be x6 your salary so unless you have a sizable deposit then start saving ...
Sorry but probably not what you want to hear

Yorkie1

You mention vendor gifted deposit (seller giving money towards deposit) - I think the only mortgage lender who currently takes this into account is the Halifax, and they will stop accepting it in the next week or so.

new_jeans

First things first, before you fall in love with a house you don't know if you can borrow enough to buy, check with a bank on how much they will lend you. Get a Mortgage in Principle and then at least if a lender will lend you enough, you have also put yourself in a stronger buying position.

You say you have the 'possibility' of 7k from family - check out the Lloyds 'Lend a Hand' mortgage.

Basically, your payment history seems good from what you say. But that is only one part of what they look for - your affordability (you may think you can afford it, but do they?), job security (a bonus is great for the pay packet at the end of the month, but is it secure enough income in a lenders eyes?) and your personal circumstances - age, maybe? Single applicant, maybe?

You say your girlfriend could move in in 1 year. Well how about (and i guess you're not going to like it!!), but, how about you hang on until then - its only a year, it will fly by - and then apply for a joint mortgage with her. In that year you can use your debt free status to help you save your income, and the fact that you're saving for something you really want will help keep you focused. Ask a responsible family member to keep the savings for you if you don't trust yourself. Also, to take a savings record to a lender in a years time will look good and show that you know how to save, and are serious about what you want - its also what they look for, evidence of being responsible with your money.

The house you have found may seem perfect now, but if you stretch yourself too much financially your life won't be brilliant. At 24, you've got enough time to save for a year, prove the savings to the lender, and buy with your girlfriend. You could still rent a room out once you buy, and the extra money you get , you could put into savings so you don't lose your savings record.

Just my opinion, but then again, at your age i wouldn't have listened to me, i'd have stormed ahead too!!!

Good luck with whatever you do. You should be commended for your ambition to buy and your financial position. Many would be very jealous, i'm sure!!