Being to unrealistic for a first time buyer?

mosphaiti

Hi all, next summer I'm hoping to get on the property ladder.

I'm currently 22 and earn £16.6k base pa. however I've been at my employer for 2 years and with over time ive earned 22k before tax both years.

My credit score isnt great, I've been declined for a credit card or two and finance on a computer .

However I've not applied for any in 6 months and don't planning on doing so until I get the mortgage . I've never had bad credit either.

I currently though do have two credit cards which I pay off each month. I also have a phone contract that I've paid on time for 5 years.

I'm in the lucky situation , and very grateful for the fact that my parents are able to give me £15,000 for a deposit.

I myself will have saved around another £5000 by next summer, which is more likely to go on setup/solicitors fees etc.

When i do a mortgage calculator it says I could borrow about £80,000

I'm just wondering if there's scope for me to get it for a property in the region up to 140,000.

This would work out as about 650-700 a month for the mortgage. However it would be a 2 or even 3 bedroom property of which I know I could get friends to live with me which would pay rent to me at least half the mortgage cost , working out at me paying 300 or so a month which is less than i pay now for my rented accommodation.

Is this just too wishful thinking and the process of getting a mortgage is much more black and white?

cattie

Lenders will not take into consideration any possible rent you might make from having lodgers. In fact, some lenders don't look favourably on applicants who make it known that they need extra money to be able to afford the mortgage & would like to realise this extra money by renting out rooms in the property.

Nowadays, getting a mortgage is all about affordability & as you've found out from the calculator, you'd probably be allowed up to £80k on your salary as lenders will view this is the maximum mortgage that your salary could cope with.