Low Income Mortgage

Person_one

I borrowed 48K from Britannia when I was earning just over 11K (actually, I was earning nothing when they approved it, I just had the job offer in writing!) have you tried them?

I live quite happily on £870 net a month, have a bit in savings and no debt. In some parts of the country and if you're good at being very frugal, it is do-able.

cheekyweegit

When do you turn 25? As you may be able to claim working tax credits too if you work at least 30 hours or an average of over 4 weeks.

I'm not sure if lenders take this into account, but it would certainly boost your income a little.

Worth looking into.

seven-day-weekend

HappyMJ wrote: »

Neither do I to get the 1 bedroom LHA rate. It was just an example.

In excess of the £7,500? 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.

My son's flat cost £65k early this year and needs minimal work, nothing that needs doing straight away, and came with all carpets, curtains and kitchen appliances. It is a good size two bedroom flat in a popular area.

Not everyone lives in London, you know!

Suarez

Wow! Been away on a first aid course yesterday and haven't been online since last week.

Thank you all for your advice! I have decided to keep saving for a bit and not put an offer in on the house. I'm going to look for somewhere within walking/cycling distance to work and try and build up a bit more deposit.

Thank you everyone for your input

paulmapp8306

Suarez wrote: »

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.

i think those car prices are a bit low as well personally.

£2.50 Tax ??? im assuming its one of the very low tax brackets car - and no idea how cheap that is so possibly (im guessing you know there).

Still, £25 insurance?? Really - at your age? £300 per year? Hell - Im 46 with over 10 years no claims and a claim car - mine is £600 per year.

All that aside, £30 maintenance is low as well IMO. £360/year wont get 4 tires and brake pads. OK you wont need all 4 tyres and pads every year, but what about MOT anything that crops up. What if you alternator goes? etc etc. theres not a lot of leeway there.

Theres also nothing in your budget for household repairs. Food? £20/week? thats TIGHT just for food for one. what about cleaning products? washing products? Annual gas checks? Boiler servicing?


Having said that -

Fair play for saving what you have, and wanting to move forward BUT i think your seriously underestimating all the extra costs involved in owning a house. personally I think yo'd be better off continuing to save until you other half is ready to move it. The extra income would split those housing costs and make things more reasonable.

Suarez

My tax is £30 per year and insurance last year and my insurance last January was £260 with 4 years no claims and I have never paid anywhere near £360 a year for my cars (even the bangers I started off with). I guess I have just been lucky.

MrChandlerBing

Suarez wrote: »

My tax is £30 per year and insurance last year and my insurance last January was £260 with 4 years no claims and I have never paid anywhere near £360 a year for my cars (even the bangers I started off with). I guess I have just been lucky.

Personal question but what car do you drive? I think I need one. Never seen quotes like that for a 24 year old ever.

paulmapp8306

Absolutely - thats low for a more mature driver with plenty of no claims.

My nephew just insured a car - its a mini, and hes 24 with 6 years no claims - £600 which we though was very good value.


Also - you havent commented on the "maintenance" costs for said car, or indeed shopping which is stupidly low at £20/week.

paulmapp8306

Nothing about life insurance - which could well be a requirement to get a mortgage.


TV is more than £10/month as well - OK not by much, still its more than £10.

Also - if you doing a propper account, you need to budget for EVERTHING. That includes things like:

Holiday Fund

Entertainment

Christmas/Birthday fund

CLOTHING fund

Emergency fund - you have no contingency for repairs/breakdowns/servicing of household stuff.

Etc Etc Etc

I know you have £175 spare in your budget to cover these things - but you need to put a sum away for each - THEN see what you have left. How much are you saving for increases in utilities, or interest rate rises?

REALLY Not trying to put you off - Im just a little concerned (for you) that your not planning for reality as there are some low figures, and some missing ones. Im sure if you put a propper budget together it will be clear as to what you can/cant afford.

Suarez

paulmapp8306 wrote: »

Absolutely - thats low for a more mature driver with plenty of no claims.

My nephew just insured a car - its a mini, and hes 24 with 6 years no claims - £600 which we though was very good value.

1st year was £1500 for a 1.2 Clio
2nd year £1100 for same car
3rd year was £900 for 1.6 astra
4th year was £490 for 1.4 Peugeot HDI
This year was £260 for same car in January this year with Hastings.

I did add my father on my 3rd year onwards and that deducted quite a bit (Wish I'd found that out earlier)