Can i get a mortgage?

PHARR

Im 21 years old, Currently serving in the Army and plan to stay for another 6 years.

Iv never been in debt but ive got an overdraft which i use to dip into a year ago.

I don't believe i have a credit history however i had Sky as a direct debit for over a year and never missed a payment.

The army offer us £8000 towards our first house to mortgage which we have to pay back eventually over as long as we want.

Would a solicitor represent me and would my bank give me a mortgage?

CLAPTON

how much do you earn
how much have you saved
would you actually live there

ps. using an overdraft is debt

PHARR

I earn 20K a year at the minute, Around 1,700 A month.
I wouldnt be living there yet. But if its not possible my OH would be.
I have 2,000 saved plus i have the 8,000 army grant.

Kind Regards

powerwin

How much would the property be that you wish to buy?

Personally I would say you normally want to be able to put down a 10 to 15% deposit, otherwise the mortgage deal you get will be relatively expensive.

As a rule of thumb, lenders will lend you around 3.5 times annual salary.

As the Armed Forces is a riskier profession than most, this may be a factor for some lenders, although I don't have specialist knowledge. Does the Army not provide any help and advice service for buying a house?

Rgds

PHARR

powerwin wrote: »

How much would the property be that you wish to buy?

Personally I would say you normally want to be able to put down a 10 to 15% deposit, otherwise the mortgage deal you get will be relatively expensive.

As a rule of thumb, lenders will lend you around 3.5 times annual salary.

As the Armed Forces is a riskier profession than most, this may be a factor for some lenders, although I don't have specialist knowledge. Does the Army not provide any help and advice service for buying a house?

Rgds

The maximum were looking to spend on a house is 80,000 this is very cheap in the north east.

I guessed because i could get 8,00 straight away from the army that's there part in supporting us, they don't really have and specialized help in this area as they offer houses to live in for a period of time so they feel its not as necessary to help us with other matters when they have already provided for us.

I really appreciate your feedback though, Thanks for replying.

Wh05apk

You should be fine, several lenders will allow you to take on a reisdential basis, but still let the property out if you are in the forces.

With regards your Army grant, if you take that, you will lose any access to quarters etc, so you may do better trying to find your own deposit.

handytips

Paddy H
Its not as easy as that, i am ex services, the £8000 that you talk about is a Long service advance of Pay, which you pay back over the remaining term you have left in the Army, the Ministry of defence will take a second charge over any property that you purchase for that amount and will remove the charge when it is paid, i have done this myself in the past, i would suggest that you will also need to save at least a 5% depostit yourself, most lenders will not accept the LSAP and you will be limited to a small number of lenders. You need specialist advice on this from someone who knows what they are talking about when using the LSAP as it is quite a complicated procedure. Good Luck