Would I get a mortgage?

former_student

As I'm not long out of University and just into my 1st full time job which pays 13,000 p/a, I am wondering what the prospects are of me being able to secure a mortgage.

I have seen a property that I am interested in with an asking price of £140,000. I have a deposit of around £15,000 which means I will need approximately £125,000. Do I stand a realistic chance of being able to get a mortgage and if so what are the best options open to me. Any help would be greatly appreciated nd thanks in advance.

Dani85

£125,000 on £13,000pa?? I would say pretty impossible, sorry!!

We were only looking in the region of £110,000 on a joint income of £25,000

kingkano

550 mortgage payment from an 850 salary?? I think you need to think this over a bit more.... but nobody is lending 10x salary yet....

can you band together with a couple of friends??

Polovski

you could get it on a self certification mortgage but you need to be certain that you can cover the repayments. Trying to cover repayments on £125k on £13k a year will not be easy. If you go on most of the bank sites they will have a calculater which will tell you what the repayments would be approx on a 25 year (or more) term. Have a look at that, see what the repayments are, then factor in the council tax banding, water, bills etc and see if you can survive on what is left over!
You won't get this type of mortgage through a bank, it would need to be through a broker.

Polovski

hehehe, Kingkano did the math, £300 is not much to live on is it. Can you not look for a cheaper alternative?

AndrewSmith

Polovski wrote: »

you could get it on a self certification mortgage but you need to be certain that you can cover the repayments. Trying to cover repayments on £125k on £13k a year will not be easy. If you go on most of the bank sites they will have a calculater which will tell you what the repayments would be approx on a 25 year (or more) term. Have a look at that, see what the repayments are, then factor in the council tax banding, water, bills etc and see if you can survive on what is left over!
You won't get this type of mortgage through a bank, it would need to be through a broker.

And how exactly would that work? This is exactly the sort of attitude that gives the mortgage industry such a bad name.

Self certification does not change the amount you earn nor is it a license to borrow without responsibility or liability to repay the loan.

Income multipliers and affordability calculations still apply to self certification mortgages and, in the vast majority of cases, there is no guarantee that the lender will not request some form of proof of employment status and bank statements showing a level of income representational of that being declared.

All that self certify means is that you are unable to prove income by the normal routes of Payslips or Audited Accounts. Nothing more, nothing less. It does not mean that the lender WILL not ask for evidence of income in another form.

DO NOT apply for a self certify mortgage and state an over-inflated income. It could land you in prison for up to 10 years. It does happen too, I know of a broker and the client who are both in prison for exactly this.

toonfish

Polovski wrote: »

you could get it on a self certification mortgage but you need to be certain that you can cover the repayments. Trying to cover repayments on £125k on £13k a year will not be easy. If you go on most of the bank sites they will have a calculater which will tell you what the repayments would be approx on a 25 year (or more) term. Have a look at that, see what the repayments are, then factor in the council tax banding, water, bills etc and see if you can survive on what is left over!
You won't get this type of mortgage through a bank, it would need to be through a broker.

Any broker that would sort this deal out needs their head seeing to - there is simply not enough income to cover it.

skanger

Former_Student

Using most 'normal' forms of calculation, you would be able to borrow around 45k, so this with your 15k would give you a maximum of £60k to spend (not withstanding the other costs you would need to budget for such as solicitors etc).

I accept this amount would get you little if anything, so in that case you need to consider doing as others have suggested, buying with a friend / relative etc or look into the option of shared ownership programmes.

Or maybe just rent for now until your income increases.

HTH

former_student

I have considered buying with a relative. That would bring the joint annual income into excess of 35,000 p/a. In addition to this the deposit would be up to around 20,000, therefore 120,000 would be required to borrow. While my annual salary is at 13,000 this figure does not take into consideration bonuses etc that I recieve.

Would this joint venture make my likihood of getting a mortgage more plausable and if so what are my best options. Thanks again.

BrunoM

It's basically pretty simple for finger-in-air type estimates

if you are in regular proveable full-time employment it's rarely going to be hard to get a "5x income" mortgage.

For joint mortgages, with a bit more fiddling I am led to believe it's probably possible to get a "5x joint income" mortgage but it would be more circumstance-dependent.

With a good credit history, a decent deposit, no outstanding debts sort of situation, a x7 might be viable but I think this is more for single than joint.

Apologies any glaring errors - lunchtime pizza and a few beers...

Dani85

we have just bought a house for £97,000.

With our mortgage and all our monthly outgoings, water rates electricity gax, council tax blah blah blah it is just short of £1,300.

You need to realistically think about whether you could afford it. Even if you could get the money, do you really want to live in the red all the time?? xx