First Time Buyer - Sole Application *HELP*

crombie2012

Hi ya fellow MSE peeps

I am needing a little bit of advice re applying for a mortage by myself and if it is even feesable?! It's not gonna be happening for about 12-18 months as I am currently paying off my debts & saving for a deposit, whilst living with family.

My info is:

I earn £17.5k pa + £1100 annual bonus
Will have been in my job in finance for 3 years.
Will be debt free by then (I have £8k of debt now that I have just cleared my £2.5k overdraft) and this will be completely cleared by March/Feb next year.
Will have a £10k deposit by then (£6k I will have saved myself + £4k from my divorced parents)

My credit score has been brought down due to being financially linked to my Ex partner but I am in the process of being de-linked from him as we speak, so credit should be a-ok by then.

Based on my income & all other info, is it likely that I would be able to get a mortgage? My income isnt massive but I have a steady & secure job.

Any help would be greatly appreciated as I am trying to plan for the future.

Cheers! :money:

The_J

You will probably be able to get a mortgage of around 60-70k if your credit score is OK.

Thrugelmir

A lender may well look for a debt free period of time on your record. To see that your management of finances has improved.

crombie2012

Okay, thanks to you both.

So, if I were to have a deposit of £10k & based on my current salary, I may be able to borrow max £70k on top of my deposit?

I have been having a look online & places around my area within this price range are not in good areas BUT I have seen the new build properties that keep popping up and you can get a mortgage for a 40% share in a property, which shows as around £40-£50k. I know that this is known as staircasing & you pay rent on the part you dont own....but is this worth looking into?
Technically I would still own, my deposit would look more attractive as I would need to borrow less for the actual mortgage & I can buy more % if my circs get better.

Is this worth looking into? Anyone heard any positive or negative feedback about shared ownership?

Yorkie1

Don't know enough about SO to answer that part of your question, but make sure you've budgeted for legal fees (probably £1K max), and a contingency fund for those things which the sellers 'forgot' to tell you about ...

crombie2012

Yorkie1 wrote: »

a contingency fund for those things which the sellers 'forgot' to tell you about ...

Ok thanks. Such as???

Yorkie1

Boiler, dodgy built-in oven, shower not working properly, leaking taps, electrics, etc

crombie2012

Ok thanks. I thought that was the kind of thing that you meant but wanted to check!