low wage mortgage????

freddyfoxtrot

what is the chances of getting a mortgage on a property borrowing £100,000 based on £600 pr month wages and absolutely no deposit (only gift of deed, where we are not taking a mortgage for the full value of the property)
a complete no go i feel but someone somewhere might know different.

_Andy_

None whatsoever.

opinions4u

£100,000 over 25 years at 5.00% interest would cost in the region of £591 a month.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

How would you pay the council tax?

Or feed yourself?

Think 10% deposit and 4 times gross annual salary (assuming no other debt) and take it from there.

GavB79

Owning a property is not the be all and end all. Try putting some money aside for a while, or increasing your income.

freddyfoxtrot

I get a higher income than that stated. i also get benefit as i have a disabled child but a mortgage company will not count this as income and they will only count my working wages which is as i stated.

_Andy_

How much is the other income and specifically what is it?

opinions4u

freddyfoxtrot wrote: »

I get a higher income than that stated. i also get benefit as i have a disabled child but a mortgage company will not count this as income and they will only count my working wages which is as i stated.

Ok,

If you approach a potential lender to raise a loan or mortgage you might find that they give a more helpful and accurate response if you provide them with a bit more information up front.

Borrowing money is not a game of keeping your cards close to your chest. It's about being open and honest with a provider and telling them relevant information.

You said you earn £600 a month. Then you magic up another source of income. While you haven't been dishonest, a lender could easily get an impression that you are not being entirely open with them. In today's market that could lead to an "if in doubt decline" decision.

I'd suggest that you find a good quality mortgage broker locally, provide them with details of all your income, earned and unearned, and ask what can / can't be done.

I don't think you will get a mortgage, but different lenders treat different benefits in different ways.

Your lack of personal deposit may be an issue. I'd suggest you are clear up front about the nature of the relationship with the seller. Why is the property being part-gifted to you?

Finally, if I was lending you the money to buy, I'd want to understand how you are going to pay valuation and legal fees. If you don't have them saved and you're not committing a personal stake to the property then you risk being declined if anything else is making underwriters uneasy.

_Andy_

_Andy_ wrote: »

How much is the other income and specifically what is it?

Actually ignore that, it doesn't matter as you haven't got a deposit anyway.
Zero chance of any mortgage.

GMS

Are you looking to purchase the property from a close family member at undervalue?