Desperate help please on possible mortgage!!!

hacarya

Hi
Hope someone can help me.

We are currently renting and pay £430 a month rent. We starting renting a year and a half ago when my hubby came out the RAF !! we were in married quarters before}.
As we were unsure what job m.y hubby would get we decided to rent as the house was low rent and near to kids schools. The landlady told us she would not be looking to sell at all as the house had been passed on from her deceased grandmother so we felt relatively secure and decided that when my youngest goes to school !! this september }, I could work full time and we could start to save for a deposit for a house.
However we got a shock this weekend when the landlady told us via letter she would be considering selling in the summer.

We only have £2000 saved and feel we really need to look at getting a mortgage as do not want to rent any more after this experience.

My hubby earns £29,000 a year.
I earn £5000 a year in a part time job.
Other income is child tax credit and child benefit, a combined total of £2440.

This gives us a combined total of £36, 440 a year.

Would we be able to get a mortgage on this?
The houses on average around £140,000 round here.

Would we have toi get a 100 % mortgage as we have no deposit?

Any other advice would be greatly appreciated!

We have outgoings of £630 excluding rent and we have about £2000 on credit cards, £123 on a car loan every month and a sofa on interest free credit of £39 for the next three years.

Thanks
Sarah

We dont want to buy this house we are in by the way but look for something else!

herbiesjp

Hi Sarah

You are looking at over 4 times your joint income and that is without taking into account the credit cards and two loans you have. Some lenders will also want to know how many children you have, as this will affect how much they can lend you based on their affordability calculators.

Having a look at an average deal of 5.99% a £140 k mortgage would cost £901.17 pm (on a 25 year repayment mortgage basis). Now you can play with the terms to see whetehr you can get this figure down, but you should always look at a worst case scenario, and say "Can I afford that figure? - Will I still be able to afford that figure if rates went up to 8.99%?

If the figures are still OK on your affordability, there may be a few lenders that could look at the scenario for you.

It will all depend on your credit scores, as 100% mortgage re extremely tight on the credit scoring

I would suggest having a word with a fee free whole of market adviser to see what they can come up with for you

HTH

Conrad

I think you will find N Rock offer high income multiples subject to status.

Perhaps a 5 - 10 year fixed rate might suit so as to avoid any 'payment shock'.

First National / GE Money can offer very very high multiples but rates are high as are fees.

Royal Bank Of Scotland are now also doing high income multiples but can be fussy - they always want to look at your Bank statements.

Of course a capital repayment mortgage is ideal, however many now take interest only and then seek to make ad hoc capital payments (subject to lender rules). Not idea - but then niether are property prices.

The regulator bangs on about affordability however they fail to recognise the flip - side of being cautios is living in rented property making landlords rich. Im not sure which is better in terms of Treating Customers Fairly. No doubt the management own thier own homes so thier allright jack.