can i get a mortgage?

over_the_moon

Hi All,

Myself & my hubbie have been private renting for over 11 yrs now and we have 2 kids. we want to start putting our monthly rent to some use and start paying our own mortgage so we dont waste our money for the rest of our lives! We are currently paying around £600 per month in rent but being a complete novice at the mortgage game I'm guessing we dont have a chance at getting a mortgage- we dont really earn enough hubbie on £14,000 me now on part time wages until i can go back full time. Is there any chance we can actually get a mortgage for about £150,000 to be able to get a 3 bed? Any help would be greatly appreciated.
x

kingkano

Do you have any deposit? and what are your part time wages? Id say its a pretty big stretch though...

Madjock

You can count your child tax credits as income as well, you need to see a professional really, or hope that one pops into this thread. Hopefully this bump will help. x

MortgageMamma

Do you rent a council house or a shared ownership property or are you renting privately?

over_the_moon

Thanks for the replys all- didnt realise you can count tax credit as income too. We are private renting through agency. Our joint income's at the moment is probably around £20,000 including tax credits. Will be more once i go back into full time work. Does anyone think we could get a mortgage anywhere? Any advice gladly welcomed.x

JoeK_3

You could consider a shared ownership mortgage.

If you are unable to buy a property outright on the open market, then shared ownership is the ideal solution for you. Shared Ownership is a part buy, part rent scheme, which enables purchasers to buy a home in stages. Purchasers can buy an initial share between 25% and 75% of the value of the property and pay a subsidised rent on the remaining value of the property. Shared ownership properties can be provided by housing associations, housing trusts and local authorities. These organisations try be as flexible as possible with regards to the initial share purchased, but this may be as much as 50% of the market value at some of their developments.

A service charge will normally be payable to cover the cost of communal maintenance. The service charges payable can remain the same whatever percentage you own of your home and continues to be payable should you purchase your home outright where possible. You will need to have sufficient savings to cover the initial cost of home ownership: legal fees and stamp duty for example. You will need to be able to meet the costs of rent, mortgage, service charges and other associated outgoings.

As your income increases, you can buy further shares of your home until you could own 100% of the value and no longer share the ownership with the housing association or trust. The greater the percentage you own, the lower the percentage on which you pay rent. However, if you do not wish to buy more shares in the property, you do not have to. Obviously, the more you own, the less you pay in rent. And, if you can buy your home outright in the future, then no rent will be payable.

JoeK

MortgageMamma

nice one Joe,my sentiments entirely - the openmarket homebuy scheme would be a great option too

http://www.housingcorp.gov.uk/server/show/nav.2129