Am I able to get a mortgage ?

Darojo65

Im a single parent working part time with a low income of £9,360 gross pa. (£17,000 if you include tax credits which I believe lenders dont ??).
I have a deposit of £80,000 and have seen a property for £130,000.
My income is low but my deposit is high...will any lender offer me a capital and interest mortgage of £50,000 over 8 years for less than £800 pcm or is it a non-starter altogether ?
Im a first time buyer so any advice would be greatly appreciated

ACG

Theres a lot of questions that i think need to be answered (not necessarily in an open forum but it would help).

Firstly, depending on the benefits they may be taken into account - we would need to know what beenfits and the breakdown.
Where has such a large deposit come from with such a low income.
Why does the mortgage have to be an 8 year term?

Its not a straight "no" but it depends on the answers to those questions really.

Wh05apk

Some lenders take tax credits into account, £50,000 should be possible, however they work on affordability, nd so over a short term like 8 years I doubt if it will fit, you will probably need to extend the term.

With a stuation like this, I would recommend speaking to a broker for your best option.

property.advert

Wh05apk wrote: »

Some lenders take tax credits into account, £50,000 should be possible, however they work on affordability, nd so over a short term like 8 years I doubt if it will fit, you will probably need to extend the term.

With a stuation like this, I would recommend speaking to a broker for your best option.

On affordability the very best judge of that would be the OP's primary bankers who can see the effect of all sources of income and presumably see how much rent is being paid each month.

Notwithstanding other factors, if the OP is paying rent of £X and is currently able to save, a proposed fixed rate mortgage and buildings insurance which came in under 100% of £X should be a doddle to prove on affordability grounds.

My first point of call would be my main bankers and an informal question and answer session leading to approval in principal (or not).

Of course, the very first step would be to pull credit files from all three main agencies.

moonshinestar

I know Halifax use tax credits and child benefit, and Yorkshire Bank take in to account tax credits. I believe Nationwide do as well but are tighter with borrowing limit. But then in saying that so are Yorkshire Bank in my experience.

Darojo65

Thank you all so much for such prompt replies and great advice.

I will try the three banks mentioned, if anyone can suggest any others or a suitable broker that thinks in the same vein that would be wonderful.

Thank you all once again :T

Dave_Ham

Do be careful about applying to a few random name dropped banks without knowing your full circumstances.

Whilst the banks mentioned are reasonable they may not be suitable as one size does not fit all and we do not know enough in isolation.

I do think this is achievable but do not part with any money or let a bank credit search you until you know you fit criteria.

Good luck