Mortgage advice please! - first time buyer

chris163

Hi Guys,

You may recall me posting about 6 months ago.

Basically, I was in the process of changing jobs to go and work for my fathers firm.

Ive now been there just over 2 months and love it. The money etc is a lot better and its less hours.

I am looking to get on the property ladder in 3 months time and I was wondering what would be feasible for me to borrow?

My salary is as follows:

Basic - £23,000
Commision - £13-17,000

Total pay - £36,000-40,000

Now as its my dads business, he can structure this however i want - i.e. if he needs to guarantee my pay at £35,000 - he will if this helps me get a foot on the ladder.

Overheads

Car Loan of £12,000 - i am unsure if I should pay this off or not during the move? I am also contimplating leasing a car through the business - would this be a good move?

Deposit

I have a deposit of about £50,000 to put into the property, after solicitor fees and other moving expenses.

How much do you think I should realistically be able to borrow?

I am not worried about debt as I can normally manage it very well if I get the right property. I will also rent a room out to a friend to help cover repayments.

Being totally honest - when i took out my personal loan for my car, I was turned down by 2 banks advertising very low rates. This was however when I was in my previous job, on a basic of £14,000 a year with OTE of £25-30,000.

Any advice gladly appreciated!!

Thanking you in advance

chris163

Also, to add to this - I have no bad credit history and my credit score is 980 when I last completed it (3 months ago). This was prior to taking out my car loan so this might have affected it.

TEDDYRUKSPIN

Its all up to you really. Firstly any bank or building society will require some proof of salary and that does not include statements indicating income. That will be 3 months consecutive or 13 weeks salary slips. Next, what is the realistic property you are willing to buy and how much will it cost?
How much of that deposit you want to use? Remember, some might go to solicitor (including stamp duty or not)? Home furnishing (refurbishment), moving furniture if any etc. You get the picture.

Obviously the better the deposit, the better the rate. After that, you just need to know if you want to fix it or not etc.... A good starting point is to click on several mortgage rate search engines, go to specific bank and building society webpages as not all can be recommended by brokers ie. HSBC etc and just do your research.

At the end of the day, it will come down to you. Your NEEDS!

chris163

Cool thanks Teddy

I am in the fortunate position of having a mother who is a Solicitor. I am also able to buy a property through our letting business directly from a landlord getting a decent deal. My deposit after deducting costs (which i have allowed about £6000 for) is £50,000.

Property in my area starts around £160,000 upwards for a 2 bedroom flat. I would ideally like a house which is £185-190,000 +. Would this be feasible?

In terms of my income, I can supply both statements and pay slips detailing this so thats not a problem. With regard to my pay slips - these can be reprinted showing my basic salary as more if need be - and a letter of income guarantee from my father can also be provided.

Would you think keeping my personal loan on would have a big impact to my borrowing capability? If so I can pay this off.

An idea of what I can borrow would also be appreciated.

Thanks