FTB - After advice please!

happy-chappy_2

Hello,

I'm new to posting but been a long term reader so I'm hoping that someone would be able to advise me.

I am in the fortunate (and very exciting!) position to buy my first house with help from my parents.

I currently earn £13500 a year, but due to the nature of my job (I'm a trainee Quantity Surveyor doing my degree by day release while working for a company) I expect this to go up rapidly over the next 10 or so years.

I was wondering if mortgage companies would take these likely increases in income into consideration when I apply?

Also, what is the best way for me to go about getting a mortgage? I currently bank with Nationwide and have done since I first started banking. I was considering making an appointment with an advisor in my local branch. Would they credit check me at this stage because I don't want to run the risk of having too many checks done on my rating.

Another question I have is - do they use your current outgoings as how much you spend, or just essential outgoings, because although I save money at the moment, I also probably waste money, and don't really have any left at the end of the month. I have no credit cards though as I only ever spend the money I have!

Sorry for such a long post but I have so many questions!

Many Thanks

harvey115

Hi

You need to show us some numbers in order to give you any advice such as:

- Salary (you have provided this)
- Any outstanding debt
- Property value
- Any savings or deposit money
- Joint or single mortgage etc

PS - when applying for a mortgage only your current and past circumstances are considered when it comes to salary. No lender would consider pay rises unless these are stated in your employment contract.

Bufger

just a quick question - how much are you currently spending on rent/lodgings per month? The only reason I ask is this bit:

"I also probably waste money, and don't really have any left at the end of the month"

if you're only paying £100 a month to your parents and you squander the rest a £700 per month mortgage with £300 of bills isnt achievable with your current lifestyle.

The post above needs answering too. We would need to know what deposit you have and what price the housing your looking for is.

Simon_gloster

happy-chappy wrote: »

Hello,

I'm new to posting but been a long term reader so I'm hoping that someone would be able to advise me.

I am in the fortunate (and very exciting!) position to buy my first house with help from my parents.

I currently earn £13500 a year, but due to the nature of my job (I'm a trainee Quantity Surveyor doing my degree by day release while working for a company) I expect this to go up rapidly over the next 10 or so years.

I was wondering if mortgage companies would take these likely increases in income into consideration when I apply?

Also, what is the best way for me to go about getting a mortgage? I currently bank with Nationwide and have done since I first started banking. I was considering making an appointment with an advisor in my local branch. Would they credit check me at this stage because I don't want to run the risk of having too many checks done on my rating.

Another question I have is - do they use your current outgoings as how much you spend, or just essential outgoings, because although I save money at the moment, I also probably waste money, and don't really have any left at the end of the month. I have no credit cards though as I only ever spend the money I have!

Sorry for such a long post but I have so many questions!

Many Thanks

Your loan size will be determined on what your earning now...although some will take future income increases ie next 3 months if confirmed by your employer.

They will deduct debt, so credit cards, loans, student loan etc. Run of the mill elements such as fuel, mob phones etc would have already been taken into account when they run the credit score.

It's up to you if you get credit searched. If you want a decision then you will have to go through one...on full application a full search is applied.

Current brokers will let you know if Nationwide offer a soft footprint (which doesn't affect you or is seen by other providers) prior to full app.

happy-chappy_2

Thanks for all your replies!

In answer to Harvey's questions:

My salary is £13500
I have no debts
The properties I am looking at are around the £100- £120k mark
My deposit is flexible to an extent in that my parents will lend me (no chare on the house etc) the deffirenece between my mortgage and the purchase price.
It will be a single mortgage with my partner being my lodger though I think I am right in thinking this income won't be considered by the mortgage companies?

I currently pay rent and bills at £400 a month with my partner paying the same.

When I say I waste money, this is after I have paid my rent, direct debits and put some aside for savings!

Thanks!

Simon_gloster

I would say a mortgage of absolute maximum is £50,000 is the most you'd get (and thats being very very conservative), therefore a gift of between £50-£70k needed from bank of mum and dad.

happy-chappy_2

Do the lenders generally lend what the online calculators say? Nationwide say they will lend a little over £53k and first direct a little over £60k, does anyone have experience as to whether this is the average they would lend dependant on the information entered, or the highest? I understand that it obviously depends on the credit checks etc but just wondered whether this was the average or highest!

Thanks

Simon_gloster

Rule of thumb for you, single man no debt no kids.....5 x times income is generally the ceiling.

However it does depend on the income. Your net take home pay is different to David Beckham's, therefore his disposable income and living costs are treated differently.

Lenders online calculators are just that, a guide. Some in fairness are not a million miles out when you apply, but I would treat them with caution.

kidmugsy

Bath BS have a scheme whereby they'll add the lodger's rent payment to your salary. So if she pays, say, £4500 a year in rent to you (use the rent-a-room scheme so that it is tax-free) they'd lend you up to £67500. That leaves quite a gap for your parents to fill. Why not wait a while until you are earning more and any effect of Eurogeddon on house prices may be clear?

http://www.bathbuildingsociety.co.uk/pams-mortgage-lending-criteria-and-information/

rodenal

Yeah hold off for a bit and keep saving - In a couple of years the salary should have risen a bit and you'll have (you will wont you?) some more savings to go with the gift. You'll hopefully be qualifying at a time when the industry is on the up again but if not don't be hoping for that exponential increase in salary.

I'm out of construction now but was a QS - it's not unusual for individuals with 4/5 years post grad experience to still only be earning mid 20's at the moment. Pre-2008 you could add at least another 5k onto that - that's with smaller contractors too.

kidmugsy

You might also want to check the Marsden Building Society for Family Offset mortgages, and the LTSB "Lend-a-Hand" mortgage scheme. But best of all, patience!

P.S. Correction: the Rent-a-Room scheme lets you have a rent of £4250 per annum tax-free, not £4500. Not too important, fortunately.