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

Raggie

the inerest portion of the loan will stay the same no matter what the term is:

150K @ 5.5% = £8250 PA required to serve the debt. making no capital repayment at all.

£15K PA equals a take home of £10,500 approx.

£10,500 - £8250 = £2,250 to live on

you say a lodger would pay half the mortgage = £8250/2 = £4125

so to run the place for the year bill council tax, to feed cloth yourself etc will leave you with approx £6,375 or £132.80 per week..

assuming you get the loan in the first place..

seems a very low amount IMHO..

J-Llo

going2die_rich wrote:

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.

I'd sell the apartment, as thats what I plan on doing anyway. It's in a very sort after area on the seafront so wouldnt take long to sell.

movieman

I'd sell the apartment, as thats what I plan on doing anyway.

And what if the price has dropped 30% in the next 2-4 years as a result of repeated interest rate rises? Ah well, I guess Blair and Brown made bankruptcy easy these days.

I honestly don't understand why you'd take all these risks rather than just rent?

Dead_Eye_Jones

dude, accept that you dont have enough money to buy a house at the moment! This isnt a problem, you are still young, why would you want to tie yourself down anyway, who knows where your life will take you! You might want to move in a few years to follow a partner or get a new job, buying isnt such a great idea until you are putting down the routes.

In the meantime, keep saving money for a deposit, the bigger this gets the less pressure there is to get a big mortgage. Work on your career, most people aspire to earn more than 15k.

Enjoy renting, move in with some mates, settle down later... house prices wont actually keep rising for ever. We are probably heading to a period of stagantion, and eventually even a down turn...

jamief

Something else to consider - if your parents are acting as guarantors, then you most likely won't be able to have a 50 year mortage, in fact, depending on their ages, you may only get a fairly short term <20 years? mortgage...

I don't see why you would take such a huge risk. Why not just rent till you finish your degree, then you can buy somewhere without all this nonsense? I rented when I was a student, and wouldn't of considered trying to buy somewhere on a low salary!

J-Llo

jamief wrote:

Something else to consider - if your parents are acting as guarantors, then you most likely won't be able to have a 50 year mortage, in fact, depending on their ages, you may only get a fairly short term <20 years? mortgage...

I don't see why you would take such a huge risk. Why not just rent till you finish your degree, then you can buy somewhere without all this nonsense? I rented when I was a student, and wouldn't of considered trying to buy somewhere on a low salary!

Thanks... I had thought about the mortgage term being less if parents had to act as guarantor's.

The only reason I wanted to buy instead of rent is that renting is just putting money in someone elses pockets, where as if I bought I'd be paying off a mortgage. Plus renting in my area costs more than the average mortgage repayments. Rent is ridiculous here.

A property has just become available for £62k, maybe that will b more accesable financially.

Rick62

I would never buy a property speculating on a 2 to 3 year period and taking into account costs. And certainly not at the top of the market.

Wait till you have the high paid job, and you know how high paid and where, then buy. there is no panic to buy anymore, the huge rises have happened.

movieman

The only reason I wanted to buy instead of rent is that renting is just putting money in someone elses pockets, where as if I bought I'd be paying off a mortgage.

You'd barely be paying anything off of a 50 year mortgage; almost all the money you paid would be going into 'someone else's pockets'... i.e. interest to the mortgage lender.

But hey, go ahead: just don't come back and complain if you're bankrupt in 2 years.

PropertyGuru

Get your 'Artificial Intelligence' program to lie on the mortgage application form for you.

J-Llo

Rick62 wrote:

I would never buy a property speculating on a 2 to 3 year period and taking into account costs. And certainly not at the top of the market.

Wait till you have the high paid job, and you know how high paid and where, then buy. there is no panic to buy anymore, the huge rises have happened.

Thanks Rick... I do agree with you and that is what I planned on doing, but obviously sometimes circumstances mean plans have to change.