Is a mortgage do-able? What do you think?

TheTortieEllie

Hi,

I'm new to the forums, hope this is the best place to post . . . .

I am first-time buyer and I currently earn £15,000 per year.

I'm looking to buy a 2 bedroom flat for £60-70,000 (I live in a cheap region).

I have a £10,000 deposit I am building up. One bank has told me they will lend me £66,000.

I have created a spreadsheet with all my potential outgoings, right down to lightbulbs/food. It indicates with some estimates) that my outgoings will be around £700 per month (excluding food/petrol/landline ( )). I earn £1,000 per month.

If my employer doesn't cut the oppotunity, I may be able to go on a training course to bump my future earnings to £25,000.

In your opinion, do you think this is do-able in terms of having some quality of life? Or do you think I should stay home yet longer for a heftier deposit?

My other option is that my partner (who is currently in debt; so mortgage companies would not touch him with a barge pole), would take out a £15,000 loan, making our combined deposit £25,000.

I would then manage all the household bills/mortgage myself and he would concentrate on paying off the loan.

What do you think?

I'd realy appreciate your advice/thoughts if you've been in this place and know what the possible pitfalls are . . .

Thankyou! :money: sorry, couldn't resist the clicking on the spinning man!

dawyldthing

possibly have the house in just your name but you need to keep it all seperate so it is yours and he cant claim half if you split up. Not a good idea getting a loan for a bigger deposit, and they ask where its come from so the lender won't be happy either. The more you save the better the mortgage rates though. You also need a buffer for problems and about 1000 for solicitor/fees, 500 homebuyers roughly and possibly 1000 product fee for your mortgage

dimbo61

Well you already have a 15% deposit and I think you would be better off buying a place on your own and letting your partner clear his own debts/build up a good credit rating.
Be careful what you spend over the first 12 months and build up emergency funds in cash ISA,s
If your B/F ( partner) moves in with you then he is a lodger for the first year or two.
Check out rent a room scheme ( £4250 a year TAX free) he can also pay towards the bills as he uses the gas/electric/water/phone/broadband etc
Keep all bills in your name and if things do work out you can buy a place together in a year or two BUT if they dont he has no claim on your home or the deposit you have paid.

Yorkie1

If you think your outgoings will be £700 per month, excluding food / petrol / landline, and you only have £1K per month income, that sounds too tight to me.

£300 per month for those outgoings, and leaving no savings for the unexpected - or if you've underestimated things like utility costs - is going to be difficult in my view.

I agree that using a loan as a deposit is a non-starter: your OH has too many debts already, he wouldn't be acceptable as you say to the lender, lenders often don't like partial deposit coming from a resident who isn't on the mortgage, and it's not acceptable to lenders as a source of deposit even if the other issues were OK anyway.

moneyuser

Your outgoings seem high. Maybe you should list them.

Out of interest which bank said they would lend you 66k?

maninthestreet

If your partner is in debt (how much?), and mortgages won't touch him, how will they get a £15,000 loan??