1st time buyer advice please?

thinkerbell

Hi Everyone!

I was hoping someone could give me some advice about my situation.

I am keen to buy a house within the next 6 months for the first time, I have a deposit of £10k at the mo and hopefully will have another £10-15k within 6 months.

My current situation:
I have just started a new job, which sadly means taking a drop in wages as I will be re-training. My new salary is only £19k.
My partner is earning around £18k basic.

If after six months we have a deposit of £20k, can I work out how much banks are likely to lend us? Houses we are looking at are currently around £150k.

I am new to this and have been reading as much as possible but as we do not earn a great deal I am worried we won't get a mortgage to cover a house worth £150k.

Any advice/help would be much appreciated!

Thanks :j

GMS

It varies from lender to lender.

Amount of borrowing depends on credit score, any credit commitments to remain, any children etc.

You earn 37k joint so if you borrowed 130k it would be 3.5 times joint salary. Assuming no other credit commitments and good credit history you should find a lender for this.

Try a few lender affordability calculators on their websites.

Good luck

gnasher18us

...you will probably have quite a bit of negotiation with price, so bear this in mind.

Sellers prefer first time buyers for a start - no chains, and the housing market is pretty slow at the moment.

It's not ridiculous to say that £150k houses could, in effect, be £130K if you negotiate.

Good luck with your first home, and remember to get a survey before you buy. Don't cut the price of a survey out of the equation.

thinkerbell

thanks for the advice people
we both have pretty good credit scores, no children or other commitments, so hopefully we can get a good mortgage.
thanks for the advice about the survey as well

Dave_6

You're in a similar position to us, 37k joint income, 24k deposit.
Buying a house for 154k at present

All the lenders we saw were more than happy to lend more than the 131k we were requesting, although neither of us have had loans or have any outstanding, also have good credit records.

Our mortgage payments are due to be £700 each month after everythings gone through, well aslong as it does go through anyway