Any way to get a £150k mortgage on low salary?

J-Llo

Hey every1...

I'm looking to get a mortgage of £150k to buy an apartment but I am only on a salary of £15k pa as I am still a student doing my degree part-time. So as you can see the mortgage I want is 10 times my annual wage and as far as I am aware that is impossible. But i was wondering if any1 knows of anyway that this is possible? Perhaps by having my parents guarantor the mortgage? They have over 100k equity/collateral now on their house.

I'd also be looking to take out a 50 year mortgage on this and plan on selling in 2-4 years.

Any help/advice/opinions would be great...

Regards,
J-Llo

jamief

I think you should consider that you could possibly get your parents to guarantor the mortgage, but unless they will also pay it you may struggle....

Sheffieldstag

Just try enquiring with a number of the mortgage companies to see what is available. I guess they'd offer nothing due to the huge amount.

tigerminxy

If your parents are willing to give you your inheritance now and give you the 100k equity so that you only have to borrow 50k, then you might have a chance. As jamief indicated, you'd have a hard time trying to make the monthly payments if you want to take on the full 150k (and assuming any lender would be willing to lend you so much, which I doubt).

Pobby

Are you being serious?wHAT DO YOU PROPOSE TO LIVE ON HAVING PAID YOUR MONTHLY MORTGAGE?

realwildone

Why do you want a £150k mortgage on your salary?

I want a jaguar sports, but I cannot afford one.

Everything that is wrong with this country is highlighted in your post. You cannot afford it so you should not buy it. Then you won't end up in trouble.

J-Llo

I failed to mention... the apartment is 2 bedrooms, the 2nd room of which i'll b renting out to a friend... so that would be half the monthly mortgage repayments paid. Plus 150k (plus interest) over 50 years would mean the monthly repayments wouldnt be high.

As I stated in my opening post I'm currently doing a degree and once completed my salary is more than likely to increase a GREAT deal. It's just needing to move out now makes it difficult.

movieman

I failed to mention... the apartment is 2 bedrooms, the 2nd room of which i'll b renting out to a friend... so that would be half the monthly mortgage repayments paid.

So long as they continue to rent. If they leave and you can't replace them... oops.

Plus 150k (plus interest) over 50 years would mean the monthly repayments wouldnt be high.

I'm not sure what rates you could get after the recent raise, but at 6% interest I make that around 12,000 a year. No sane bank would lend you that amount, particularly with interest rates expected to rise again soon; though it's arguable as to whether any banks are sane these days.

I'm currently doing a degree and once completed my salary is more than likely to increase a GREAT deal

Have you seen how little many graduate jobs pay these days?

thesaint

Having a mortgage over 50 years also means that you won't have paid anything off in the 2-4 years you plan to sell it.

To go through all that trouble with a mortgage, guarantors does not seem worthwhile.

going2die_rich

What happens if you were to lose your job? Can you reasonably be able to afford to keep up the payments (from savings) without dragging your parents in to it, as thats what being a guarantor means.

10 times your salary is a daft amount to borrow even if someone is prepared to lend you it. You don't want to be one of these stupid people that become overstretched in the mortgages they've taken on just so that they can say they are on the property ladder, especially with more interest rate rises on the way.

I think you should get yourself some savings behind you and maybe wait till you've finished studying so that you have a full time income by then. That way you are less open to risk than you will be taking on a mortgage right now.

After all once you complete your degree you may want to relocate in the UK for the best career prospects so don't want to be having to selling up before you can become flexible in that aspect.

If you are still living at home use this time to save up the cash, as living with your parents is going to be much cheaper than living with a mortgage/rent so you are making your savings grow faster. It's a pain living with your parents, but in the long term it's a good option to have. The bigger your deposit is, the less you have to borrow so longer term it saves you (a lot of) money.

My advice is to wait a few more years when you've saved as much as you can and have got a full time job and have been there for a year so you know it's what you want to do and it's a secure job. As last thing you want is to take on a mortgage, find you hate your job but unable to quit because having a roof over your head is relying on that job.

Play it safe, so don't just rush in like a fool just because everyone else seems to be doing it!

J-Llo

movieman wrote:

So long as they continue to rent. If they leave and you can't replace them... oops.



I'm not sure what rates you could get after the recent raise, but at 6% interest I make that around 12,000 a year. No sane bank would lend you that amount, particularly with interest rates expected to rise again soon; though it's arguable as to whether any banks are sane these days.



Have you seen how little many graduate jobs pay these days?

I'm majoring in Artificial Intelligence... companies in this field take on graduates at really good salaries due to the nature of the subject matter.