Okay I don't earn enough to buy a house! Help!

sfell

My boyfriend and I are looking to buy a flat/apartment in Manchester close to city centre.I earn 20,564 and he earns about 16,500 so my bank agreed to lend us 110,000 which I thought was alright. However this isnt enough! We need at least 118,000 to buy a suitable property. We've been looking for a while now (since Jan) also have been looking for the buy 75% deals but can only find ones with out parking spaces!

We have tried other morgage lenders also, but know one will take into consideration that I am a teacher and my pay increases about 2k each year!
Any of you clever people got any suggestions? Ideas?
We are FTB who have just gone through the lovely new loans set up and therefor have loads of debt-cheers Tony!

Seriously, any help would be appreciated.

herbiesjp

Based on your income there should be a few lenders out there that could help you

sfell

Cheers for your response, but do you happen to know the names of any, I've looked into general ones (other banks etc) but they don't seem to help!!
Many thanks :money:

oueyouey

You should be able to get a "professional" mortgage as you've both been to uni, the mortgage advisor i spoke said this was possible due to spending extra years in further education (without being bribed with money to stay on as they are doing now - my own opinion not the mortgage advisors!) and thus not earning a full time wage until you have graduated to be able to get a better career in the furture. Mine is through Natwest, i had a student account and then a graduate account with them. Although he did say that it was the most "expensive" mortgage he had ever done as i didn't have any deposit. But i can considerably reduce the monthly payments once my first 3 tie in years are over and then remortgage. Have you tried your own bank. Scottish Widows and Northern Rock do a 102% mortgage. But you must remember not to overstretch yourself and then possibly end up with negative equity

Is there any way you could increase your "catchment area" and move further away from the city centre. I had to widen my search to enable me to step onto the property ladder, with the view of moving back to my ideal area in a few years time when i'm further up the ladder. But you also have to weigh up the pro's and con's, my car insurance shot up considerably by moving from an areas and you also want to feel safe.

I don't want you to think i'm lecturing you but i've been through this myself and wanted to pass on my "experiences". Make sure that you are aware of all the costs of buying a house. My mortgage worked out the same as i was paying in rent but then there were other costs such as buildings and contents insurance, level term assurance, mortgage payment protector etc etc etc

Don't mean to sound nosy but are you both currently living with parents or renting? Could live with parents for 6 months to a year so you can save a deposit up.

Hope this helps and good luck!

herbiesjp

Without knowing any of your circumstances I, like many of my fellow advisers, would be reluctant to give specific names, however there are a couple of high street lenders that spring to mind

summerday

Hiya,

Try booking an appointment with an independent financial adviser, who will scour the mortgage market for you and in effect apply to a range of lenders for you. Me and my partner did this a year ago for our first house and the amound lenders would give us varied immensely- the highest amounts a few would lend us was scary!

By the way don't worry about the student loan too much, I have a huge one and that didn't seem to go against how much I could borrow.

Sarah

mah_jong

I found that an old fashioned building society were the best !

My circumstances where different ....but the bottom line was that I did not earn enough for the amount of mortgage i needed.
Have your tried any of these?

Walletwatch

i'd go with the wait for six months and save up some money idea - the latest figures show that house prices have gone down by 0.7% in March. So hopefully house prices should come down and your saved money should go up, giving you a double benefit in terms of reduced loan amt required.

Best of luck

kazd

Give London and Country a ring, they are one of Martin's recommeded mortgage brokers and their advice is free. I found them very helpful.

dougk_2

As a teacher are you not able to get a Key Worker Loan or whatever they are called now?

Or do they not apply up north?

Unfortunately I think you will need to look outside the city centre - Cities are always more expensive and the suburbs should provide cheaping housing

Seems to be lots of properties circa 100k in Stockport.

sfell

Thank you all so much for your advice. We are looking on the outskirts of the city centre, have spoke to a couple of the people you've suggested. Can't live with parents as they live 100 miles away (200 for others!) Also don't have a spare room- my room is now a dining room!Cheers Dad!
Will keep looking and will tell you all how get you.
You stars- You Rock!
Steph x