Would I get a mortgage?

Polovski

AndrewSmith wrote: »

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.

I stand corrected. I have clearly been ill advised in the past . If you notice i did point out that it would leave him living on less than £300 a month if his repayments were that much and could he find a cheaper alternative (ie a house not on the market for £140k but something significantly cheaper!)

shaz77_2

Dani85 wrote: »

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

Nice going but can people still buy homes for this sort of money?

JoeK_3

former_student wrote: »

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.

former_student wrote: »

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.

Have you thought of shared ownership?

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

lozzer1701

sorry, i don't mean to hijack anyone else's thread:o ...but would some of what's been said here apply to me, also? i'm looking for a minimum of £80000 on £12500 a year, to be able to buy my home without my current partner?

HypnoTease

Does your partner have an income?

shaz77_2

JoeK wrote: »

former_student wrote: »

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.


Have you thought of shared ownership?

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

Hope Im not hijacking anyones topics but thats an interesting option. What if I found a house I liked at £100,000 and I decided to enter this scheme and purchase 50% of the house. If in three years time I wanted to purchase the remaining 50% how much would I have to pay ie does the price flucuate in accordance with house prices?

lozzer1701

HypnoTease wrote: »

Does your partner have an income?

yes, but i want to boot him out.....so i'm looking for a mortgage on just my income-pretty much like former_student, but for not quite as much!!:o

MortgageMamma

what is your income and how much you want to borrow?

make sure you include any tax credits overtime and bonuses

what are your monthly credit commitments

typeractive

former_student and lozzer,

I (personally) think you will find it quite tough to get mortgages for those amounts and live. I currently earn a wee bit more than each of your circumstances and have a 'sizeable' deposit. I have been looking at the possibilites of buying a place between the price of £65k to £80k. Looking through the monthly spends (which I don't have much in the likes of credit cards etc etc etc) I think it will be very draining. What worries me is buying somewhere and not being able to 'live'.

Why don't you both try the budget planner that Martin provides? You can put in how much you earn, and how much you spend approx a month. It will then work out if you're in the red or not.

click me please

If the figues are not as generous as you wanted, you can consider the alternatives of buying in partnership as people have mentioned etc. Or is there any possibilities of moving back in with family and trying to save up as much as you can - if you do not want to rent.

The best of luck to both of you!

lozzer1701

i will be looking at my budget...there's probably quite a bit i could save money on (utility bills, tv/internet packages) so i'll be checking that out as well. the bills on top of the mortgage are currently about £400 on to of the mortgage-but i'm certain i can cut that down by quite a sizeable chunk.

i looked at my last wageslip the other day...i've earned in the year to date about £12680. i don't appear to be eligible for tax credits, as i think the maximum a single person can earn is £10000. overtime is available, but i cannot guarantee it. i've tried recently to supplement my income by selling stuff on ebay, but i haven't had a great deal of luck so far!! i have in the past asked my parents if they would be willing to go into a mortgage with me, but my dad has now retired...what are the possibilities here...? any other form of joint ownership scheme...? or could i possibly pull the bunny out of the hat somehow, and get a mortgage on what i'm currently earning? i'm like former_student in the sense that i'm not expecting my wages to stay this low forever. i'm currently a trainee, so i would hope that my money would go up in the future..which of course, doesn't help me now...:o