Low Income Mortgage

HappyMJ

Suarez wrote: »

Is that the average for the average UK household? I will be on my own and out of the house Monday to Friday 8 til 6.

The council tax on this house is £900 per year and I will get single rate discount.

I don't need land line or broadband and my mobile is £25 per month.

Tax £2.50
Fuel £25 (70mpg diesel)
Insurance £25
Maintenance £30 all of which I do myself apart from MOT.

I will be living alone and manage to live on less than £80 now.

So your partner is not moving in? Is she going to move in at some point? Do you want children? Maybe not now but within the next 7 years? Is it a possibility? It changes all the figures....This isn't just a short term commitment it's a very long term commitment that costs thousands to get out of.

Suarez wrote: »

Yes £200 a month.

Suarez wrote: »

My current house is £150 per year for both and it is the same size.

Can you do a pretend quote on the internet for the house you are proposing to buy and see what that comes back with? What is the excess on the policy? You need that money kept to one side to meet a future claim.

Do you have furniture to furnish this new house with or the money to spend on furniture as well as the deposit and well as the money to renovate the property?

ferox666

HappyMJ...every one of your many, many "points" (that look a bit like rude criticisms and dismissals) have been answered by Suarez and yet you just carry on and respond with yet more dismissive questions. Yes he needs to think very carefully but give him a break...

HappyMJ

ferox666 wrote: »

HappyMJ...every one of your many, many "points" (that look a bit like rude criticisms and dismissals) have been answered by Suarez and yet you just carry on and respond with yet more dismissive questions. Yes he needs to think very carefully but give him a break...

They are...sorry if they appear that way but I just can't see how someone on £10,500 gross salary can afford a mortgage of £42,500 with minimal deposit and can support themself and a possible one other. It's nearly impossible. If I was the mortgage underwriter I would refuse the mortgage.

The_J

HappyMJ wrote: »

They are...sorry if they appear that way but I just can't see how someone on £10,500 gross salary can afford a mortgage of £42,500 with minimal deposit and can support themself and a possible one other. It's nearly impossible. If I was the mortgage underwriter I would refuse the mortgage.

I don't think it's particularly hard to pay a mortgage on that salary, when you don't earn much money you tend to be much better with budgeting. Your comment about heating bills is an example of this, some people (me) never turn the heating on. I don't care about the environment I just like the cold. As such my gas bill is basically my cooking and hot water, very cheap.

Brock_and_Roll

Whether he gets a mortgage or no, I take my hat off the the OP - unlike many other punters on these boards he certainly seems to know how to run a tight ship. As a banker (but speaking personally) I would rather lend to the OP than to dinkies who despite decent dual incomes need 90% mortgages and have little savings who are an accident waiting to happen when unemployment, kids etc come along.

The_J

Brock_and_Roll wrote: »

Whether he gets a mortgage or no, I take my hat off the the OP - unlike many other punters on these boards he certainly seems to know how to run a tight ship. As a banker (but speaking personally) I would rather lend to the OP than to dinkies who despite decent dual incomes need 90% mortgages and have little savings who are an accident waiting to happen when unemployment, kids etc come along.

Well said, saving £7,500 from a 10k salary is no mean feat especially for someone aged 24.

Great use of dinky too.

seven-day-weekend

Suarez wrote: »

I am looking for a mortgage for £42,500 with a £7,500 deposit.

I cant seem to find any lenders who will lend on a small income. My income gross is £10,500.

I found the Post Office on moneysupermarket but upon reading the T & Cs the minimum income for mortgages is £20,000.

Can anyone advise? I have a good credit reports with no CCJs etc. 2 credit cards, phone contract and no missed payments.

My son got a mortgage for £40k and only earns around what you do, maybe a bit less. (The flat was £65k, we gifted him the deposit). He went through a mortgage broker and got a good deal with Santander.

smartawa

Yes it is definitely possible.

I have had a Halifax bank account for 4/5 years. I have also been in my current job for 4 years and 4 months where my annual salary is £10,400.

I went into local branch after booking an appointment with Halifax mortgage Advisor and he gave me Agreement in principle to give mortgage of upto £50,000 based on my current salary and credit score.

I than found a house valued at £69,000 and purchased that after putting deposit down of £22,000 and borrowing remaining £47,000 from Halifax.

as you see I could have still borrowed another £3,000 as I had already passed through their credit check etc so it is definitely possible for you to borrow £42,500 on your current salary.

Although, I had a much higher deposit but I think they would have borrowed me same amount as when I went in for AIP the advisor did not ask me the exact amount of deposit.


(Mortgage AIP done in Aug 2011 and got the house keys in 26 Sep 2011)

Wutang_2

HappyMJ wrote: »

They are...sorry if they appear that way but I just can't see how someone on £10,500 gross salary can afford a mortgage of £42,500 with minimal deposit and can support themself and a possible one other. It's nearly impossible. If I was the mortgage underwriter I would refuse the mortgage.

You, though, are not the underwriter. It sounds like you think you are. I would have told you to go away by now - fair play Suarez.

stringbeanjane

HappyMJ wrote: »

Do you know how much it would cost to renovate the property? Is the property mortgageable in it's current state? Most mortgage providers require the property to be in good repair to lend money on. This property sounds like an investors type property for someone who has the cash to buy it, update it and sell it on.

Prices are not the same everywhere. Where I live the crap one bedroom flats go for £30-40k, the decent ones fro £50-60k and with £65k one would get a very nice 1 bedroom flat in a very nice area. So just because the price is cheap doesn't necessarily mean the flat is in a state that requires another £10k for renovation costs...

And to the OP, anything is doable. I have just got a formal offer for my mortgage from a high street bank. I earn more than you (£17.5k), but as this is a PhD stipend the bank only took it into account at 60% - which means that in their eyes my salary is £10.5k. Everything was completely hassle free even though most people would say that banks won't borrow on a stipend. I do have a very large deposit though (nearly 80% of the sale price).