Have we got any hope?

Curry

Me and my husband currently rent our home, and for years we have wanted to buy our own home. We have 3 children and we're aged 35 and 38 so we are now 'getting on a bit' considering mortgages run over 25 years, we are coming to the end of having that amount of career time left. So if we are going to do it it needs to be in the next year or two.
The good thing is that OH has a stable job, earning around £30k. I am also employed but only a small amount of hours, and with child benefit and maintenance for my eldest son, I earn around £6k.
We have a 10K deposit.
The houses in the area we would like to live range from about £125K upwards (ideally we would hope for a £160k house).

Before I raise my hopes too much and go and get mortgage advice, can anyone tell me if you think we have no hope whatsoever?
We don't have 10% deposit (but close if it was a £125k house).
My husband has 2 credit cards (I don't know for how much). I have no debts.

Is it a 100% no possibility situation?

DannyboyMidlands

Doesn't sound out of the question, especially if you are thinking a couple of years down the line.

You need to increase that deposit though and you'll need some money for fees, furniture, emergencies etc.

Can you not take on some more hours? Make savings in other areas? Pay off the c/cards? Rent a cheaper house? In order to increase the deposit.

Curry

Thanks for your reply
How much more do you think we would need?
I can't go back to work during mon-fri as the childcare costs would basically wipe out my wages - I will have to wait until my youngest is at school in 2 years.
I suppose we might be able to squeeze another £2k ish if we really tried - I was planning on doing this anyway for fees and moving costs. I don't think we could manage any more for the deposit unfortunately

Dave_Ham

95% deals are almost unachievable unless everything is perfect.

10% is the benchmark and then this is possibly achievable at a stretch..

Aim for the 10% would be best opinion...


All the best.

On a side note, remember the £125k places and under do not incur the 1% Stamp Duty which will help..

Curry

Thanks Dave

DannyboyMidlands

Probably best to make the application when you are both working mon-fri.

In the meantime, even though I know nothing of your circumstances, I reckon there are loads of opportunities to save more money. I mean the pair of you must take home around £2400 pcm and all of this can't be going on day to day living expenses. I'd be so bold as to say that you can save £500pcm.

There are other boards on the site where you can post up your budget and other users will pick it to shreads for you. Give it a go.

Curry

I hadn't considered that Danny - It's worth looking at.
I need to have a little budget meeting with my OH.

Thrugelmir

Curry wrote: »

My husband has 2 credit cards (I don't know for how much).

Make this your first priority to resolve.

Curry

Would paying off credit cards be more important than saving a deposit?

Thrugelmir

Curry wrote: »

Would paying off credit cards be more important than saving a deposit?

Credit card balance will impact the amount a lender will advance in terms of affordability, and increasingly in terms of the amount they will advance.

If you don't know the current position.........

mijm0t77

Hi curry,

yes you have hope!:)

we are in a very similar situation to yourself. I am 35, OH is 38 (39 at the of the month) and we have to young children. I have a small p/t job earning about £5k and OH is on about £28k.

early this week we went to the bank to find what we can get. with the info above (plus we owe around £3000 on a c/c too) we could get £124k (this was about as much as we could get in our situation)

10% deposit is the minimum we would need too. as you both earn abit more than us, you should be able to get a little more too!

Although we have enough saved for a 10% deposit, we (well I) have decided to aim for a 15% deposit as the choice of mortages is better. Hope this helps!:)