First time buyers pls help

mariaf

Hello,

I just saw a house perfect for us, advertised selling price is 210k.

At the moment we have 55k for a deposit.
6k extra savings (rainy day could use for deposit if needed)
Partner gets 25k
I'm on maternity and was thinking of staying at home for a couple of years.
No debts.

Just tried an repayment calculator and the repayment 35 year fixed rate would be lower than our rent.

Would any bank lent us the money?

Thanks in advance for your help

ACG

Probably not, thats equivalent to 6x income.

I received an email from leeds building society a week or 2 ago, they said in there that they lent 6.7 income to someone. I imagine the chances of getting that is very slim but it might work...

https://online.leedsbuildingsociety.co.uk/public/mortgages/quick_enquiry.do

Just to note - im not recommending you use them, its just for info purposes.
You could potentially tell any lender you will be going back to work - its not a full on lie as you havnt decided 100% that your not going back to work by the sounds of your post.

bigadaj

Over 35 years you need to run through more normal interest rates than those currently, well certainly see 8% and from historic anecdotal info you need to run through figures at 15% to see if you could afford that for a limited time.

Thrugelmir

You'll need to revise your expectations to a much lower value property.

ViolaLass

mariaf wrote: »

Hello,

I just saw a house perfect for us, advertised selling price is 210k.

At the moment we have 55k for a deposit.
6k extra savings (rainy day could use for deposit if needed)
Partner gets 25k
I'm on maternity and was thinking of staying at home for a couple of years.
No debts.

Just tried an repayment calculator and the repayment 35 year fixed rate would be lower than our rent.

Thanks in advance for your help

Have you factored in maintenance?

ACG

bigadaj wrote: »

Over 35 years you need to run through more normal interest rates than those currently, well certainly see 8% and from historic anecdotal info you need to run through figures at 15% to see if you could afford that for a limited time.

I reckon by the time interest rates hit 15% we would all have had a fair few pay rises by then.
Im not saying it will or wont happen, but i dont think its that much of an issue.
The OP also says shes thinking of staying off work for a couple of years. I imagine the child would probably be well in school by then.

Lavendyr

mariaf wrote: »

Hello,

I just saw a house perfect for us, advertised selling price is 210k.

At the moment we have 55k for a deposit.
6k extra savings (rainy day could use for deposit if needed)
Partner gets 25k
I'm on maternity and was thinking of staying at home for a couple of years.
No debts.

Just tried an repayment calculator and the repayment 35 year fixed rate would be lower than our rent.

Would any bank lent us the money?

Thanks in advance for your help

Don't forget:

- Stamp duty = £2,100
- Legal fees = £1,000
- Survey/s = £500

Starts eating away at your £6k - I would discount that immediately.

Even with the deposit that's a 6.2x income multiplier. It seems pretty unlikely - sorry. General rule of thumb is 2x single income, 3x joint income.

kidmugsy

Lavendyr wrote: »

General rule of thumb is 2x single income, 3x joint income.

Good Lord, really? That little? A young friend of mine, admittedly a well-paid youngster, was told 4x single income as a rough guide, some months ago.

ACG

It is generally 4x.
Some lenders are strict and wont allow 4x but i work to the rule of 4x income with clients.