Mortgage advice welcome!

sunshine79

Hi,

I am stuck in the renting rut - don't earn enough for a mortgage even though the repayments would be less than rent and I cannot save for deposit whist paying out all the rent!

I am a single parent working part time with tax credits to top up my wage. I have been left £15,000 from a relative and when I have looked at some mortgage calculators, they do not seem to make a difference if I have a deposit or not - just on my income (where they offer about enough to buy a garage!!:(). Thankfully I am debt free, so surely that would go in my favour too??

Would so like to get on the property ladder and stop paying my money into someone else's pocket.....

I am naieve about these things, so any advice would be grately received.

Thanks :rotfl:

GMS

What purchase price would you be looking at? What is your total income?

Even if you find a lender who will accept tax credits you need to look beyond that and ensure, as best you can that you would be able to afford the mortgage if/when they cease.

sunshine79

Hi,

Thanks for your reply.
My total income is about £14,000 (do not take child maintenance into account as that is a bit sporadic!) and the house price would be around £110,000 - £120,000 (that is the lowest band of housing in the area).
A huge gap I know, but thought maybe having a deposit and being debt free would help.

Thanks

ItMightBeUsefulOneDay

sunshine79 wrote: »

Hi,

I am stuck in the renting rut - don't earn enough for a mortgage even though the repayments would be less than rent

The repayments might be less at the moment, but would they if interest rates went up? It may only be around £600 per month now but if rates shot up, you could see that double.

sunshine79 wrote: »

Would so like to get on the property ladder and stop paying my money into someone else's pocket.....

Understandable but you'll need to up your income considerably to get a £100k plus mortgage. As a single parent you need to decide what's most important - owing thousands to the bank or spending time bringing up your child.

ACG

Could you go to court and get the maintenance court ordered or done through the CSA? If so lenders will take this into account...providing it is being paid.

Also presumably you get tax credits? Could you go into more about what you get on these?

What your looking for based on your income alone (especially with a dependant) is going to be impossible.

Alternatively, could you get a parent to go on the mortgage with you?

sunshine79

Thank you all for your time, but it looks like me getting a mortgage to buy my own place is impossible from what you say. I wouldn't want to burden my parents with coming in on a mortage with me as my father is just going into retirement so money will be tight for them too.

I think I will continue as I am - of course my child comes first.
Maybe one day my situation will change......

Thanks

samtoby

I have read all this and thought that was me a year ago.

But I had no desposit. I had to move out of my rented home in with my Mum (thankful she could help) it is a squeeze but I am so proud of where I am now.

I don't earn great; but I am trying as hard as I can to apply for better paid jobs with more oppertunities. I have applied for so many and got my first interview last wednesday. I reckon thats the first in about 20 things I have applied for.

I am a single Mum and I hope you find a way to keep saving at least. The larger deposit the further you might be able to get.

I hope you are successful x

sunshine79

Ah, thank you. Nice to know I am not the only one. The odds are stacked against us, but we just have to make the most of it and keep a roof over heads for the little one's sakes. You are doing well with your savings- keep up the good work and I hope that something comes of your interview. Good luck x