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

regularsaver1

J-Llo wrote:

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.

are there many jobs going in this field?

clearvisor

Raggie wrote:

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..

£132-80 for food and clothes and council tax,
My £260 per month and i have to live on that for everything,
cost of living rise for pensioners is just the goverment amount,
more going back to goverment than what i have to live on, Oh for a partner to share things with, i shall be going outof this world the same as I came in with nothing at all,

MortgageMamma

I think J-Llo has got the message not to do this guys! Please be nice!

Martinslovechild

1. I've worked in I.T. for 17 years, which I guess makes me sort-of experienced in my field. Through the years, I've been through 6 (yes, six!) rounds of redundancy within 3 different companies. Although i've never been made redundant myself, i've come to the conclusion that I.T. is great when the economy is doing well and VERY VERY BAD when it isn't!! Also, don't believe that it's always the best that get retained - I've seen some very good people being booted out.

2. People seem to maintain a view that house prices will continue to rise indefinitely. Many overlook the fact that house prices are currently 38% above the long-term trend. Although they may continue to rise for a while, a crash will come at some point within the next 3-4 years. In this environment, renting would not be 'dead money' but would instead be your friend! The 2-bed apartment currently on the market for £150,000 would be closer to £80,000 at the bottom of the next housing cycle. You would have saved yourself £70,000 minus the cost of renting for 4 years.

3. Other people on here are correct in that the common consensus is that you save a deposit before buying a property. Not doing so not only limits the choice of mortgages available to you but also increases costs - 100% mortgages generally come with larger 'Higher Loan To Value (HLTV) Insurance' costs for instance.

4. People often forget lots of the small things when budgeting for large purchases, instead suggesting comments like "I'm sure I can afford it". Birthdays, Christmas, going to the pub, eating, buying clothes/shoes, petrol costs, car insurance, coldplay CDs. They all have to be accounted for. On your £10,500 take-home pay, you're coming away with £875 per month. Can you hand-on-heart say truthfully that you can afford a big outlay on a property at this time?

5. Right now, there's a sought-after development just 4 miles away from where I live. On it, you'll find houses in the £500,000 bracket. What the salespeople won't tell you is that on the same development, there are 5 repossessions selling for as little as £330,000.

6. We've been living in a decade of low inflation. During the late-80's and early 90's, inflation peaked at 15%, meaning mortgages hit 16%. I certainly don't expect the global economy to return to these eye-watering levels, but it's worth bearing in mind that we have experienced historically low interest rates during recent years. They're not called 'historically low' for nothing.

I wish you the very best for your future, regardless of which path you choose at this time. However, if I were your Dad, right now I'd be telling you to hang-fire on purchasing a property for at least 5-6 years - it will be worth the wait.

AnnieP_3

Is it illegal to lie about the amount of money you earn, a friend of mine has, and her employer has never been contacted. I think this is extremly dodgy, but is it the finance houses to blame if she was to get into problems?

MortgageMamma

ANyone who lies about their income on any financial application is committing fraud which is an imprisonable offence. I suggest you make your friend aware of this.

cupid_s

When we got a mortgage OH had to take his last 3 months payslips with him to prove he earned what he said he did.
Surely this is standard practice so how could you lie?

AnnieP_3

MortgageMamma wrote:

ANyone who lies about their income on any financial application is committing fraud which is an imprisonable offence. I suggest you make your friend aware of this.

I was pretty sure it was, and have told her several times!

AnnieP_3

cupid_stunt wrote:

When we got a mortgage OH had to take his last 3 months payslips with him to prove he earned what he said he did.
Surely this is standard practice so how could you lie?

It wasn't a mortgage, it was credit cards!!

Martinslovechild

cupid_stunt wrote:

When we got a mortgage OH had to take his last 3 months payslips with him to prove he earned what he said he did.
Surely this is standard practice so how could you lie?

With a self-certification mortgage.