mortgage help please?

weesie81

ok sorry am a bit clueless at all this have never posted on here before!

i am currently renting (temp) but we need to buy & soon our daughter goes to local school so we want to stay in the area but house prices are so high!
we live in scotland so work on the offers over system too which doesn't help

we have a £10k loan, i am a stay at home mum, my hubby earns £16k, no savings we have 2 children and receive approx £500 working & child tax credit no other debt really a credit card but its almost paid off

we had a mortgage 4 yrs ago that was your bog standard 4x salary high street lender 25 years 5% deposit but it was a 1 bed flat and we had to sell when the kids came along and took a private let,will this make a difference this time?

now we would be hoping for a 100% mortgage over a longer period of time we are aged 25 & 29 so time on our side is this possible?

also how many payslips would they need of hubby's as proof? now i have also heard of tweaking mortgages up does this happen or is it a myth?

sorry just reread this and realised its a story

MortgageMamma

What are your monthly payments on the loan?

The £500 WFTC, is that per month or per year?

Do you have any other outstanding debts?

Whats your credit rating like?

silvercar

If you give an indication of the mortgage size you are looking for, I'm sure the professionals will be able to advise you.

Tweaking mortgages

Is the pope catholic?

Remember that whatever mortgage you obtain, you will have to pay back.

It may be worth getting your eldest a place at the school of your choice and then living in a slightly cheaper area.

weesie81

sorry our loan payments are £185 per month

wtc and ctc are £500 per month combined

child benefit is £120 per month

hubbys exact salary is £16,200

we have good credit i think never missed any payments etc

realistically what do you think the max is we could borrow?
thanks xxx

weesie81

anyone please?

herbiesjp

What property prices would you be looking at? It might be easier to look at it this way round

weesie81

i have no idea really the house prices have really gone up here and with the offers over system i'm not sure of the prices? my dad has a 2 bed ex local authority think its valued at around 100k?

JoeK_3

Have you considered a shared ownership property?

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

herbiesjp

SO you have £8640 per year in credits/benefits
Your OH has £16,200

However you need to deduct 12*£185 = £2220 from his income which leaves £13980

However you would need to find a lender that would accept 100% of the benefits/credits

A 100k mortgage @ 6% on an interest only basis would be £500 pm

WOuld that leave you with enough to live?

Having said that You will not get a £100k mortgage and I think you would really need to look at your affordability here.

weesie81

oh really we would not even get 100k? i just don't understand how it all works at all?

weesie81

sorry i have never heard of this shared ownership property & we have no savings for it either?