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Whats my chances?

Hi,

I currently earn £17,000 and also have a business on the side (partnership - not got any proof of earnings from it yet though). I have a degree and have a very good credit rating.

My wife earns £11,000 however is on a marriage visa and will not recieve "indefinate leave to remain" untill November this year.

We currently rent and and pay £460 a month which is comfortable for us.

We have seen a house we would like to buy which is on the market for £95,000 (hopefully an offer of around £90,000 would get it).

We dont have much in the way of a deposit only around £3000, so what would be the chances of getting a mortgage in our current situation of say around £87,000?

Any advise would be much appreciated.

Thanks

Andy

Comments

  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    dawsonio wrote: »
    Hi,

    I currently earn £17,000 and also have a business on the side (partnership - not got any proof of earnings from it yet though). I have a degree and have a very good credit rating.

    My wife earns £11,000 however is on a marriage visa and will not recieve "indefinate leave to remain" untill November this year.

    We currently rent and and pay £460 a month which is comfortable for us.

    We have seen a house we would like to buy which is on the market for £95,000 (hopefully an offer of around £90,000 would get it).

    We dont have much in the way of a deposit only around £3000, so what would be the chances of getting a mortgage in our current situation of say around £87,000?

    Any advise would be much appreciated.

    Thanks

    Andy

    From the fugures mentioned, you are not yet ready to get on to the property market as you will need a minimum of 5% deposit plus other potential costs.

    As far as your earning are concerned, you need a period of stability with regard to your self employed (business) earnings.

    Further complications with your wife's "indefinate leave to remain" status convinces me to recommend that you leave things in obeyance until after November this year at the earliest.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • dawsonio
    dawsonio Posts: 105 Forumite
    JoeK wrote: »
    From the fugures mentioned, you are not yet ready to get on to the property market as you will need a minimum of 5% deposit plus other potential costs.

    As far as your earning are concerned, you need a period of stability with regard to your self employed (business) earnings.

    Further complications with your wife's "indefinate leave to remain" status convinces me to recommend that you leave things in obeyance until after November this year at the earliest.

    JoeK

    Thanks Joe,

    Just a note to add the £17,000 per year is from permanent employment with a company. The business is just a side project at the moment.

    I read on another thread earlier that some lenders will consider you without ILTR, could this be true?

    Does anyone have any experience of Advantage? On their intermedary site they suggested i could get £87,000 95% LTV on my salary alone with one of there non conforming mortgages.
  • wardlaw
    wardlaw Posts: 124 Forumite
    Hi

    On a Salary of £17,000.00pa you would need to borrow around 5x your salary to cover a mortgage of, say £85,000.00

    john
    I am a Mortgage Adviser



    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • dawsonio
    dawsonio Posts: 105 Forumite
    wardlaw wrote: »
    Hi

    On a Salary of £17,000.00pa you would need to borrow around 5x your salary to cover a mortgage of, say £85,000.00

    john

    Would that be possible? It would not be a strech because i would have my wifes income and business income as extra that wont be taken into account.

    Also would it be possible to declare on an application that say my wife pays £300 a month to me as guaranteed income to get around the fact that she will not be able to join the application until after November?

    Thanks for all the help so far :beer:
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    dawsonio wrote: »
    Thanks Joe,

    Just a note to add the £17,000 per year is from permanent employment with a company. The business is just a side project at the moment.

    I read on another thread earlier that some lenders will consider you without ILTR, could this be true?

    Does anyone have any experience of Advantage? On their intermedary site they suggested i could get £87,000 95% LTV on my salary alone with one of there non conforming mortgages.

    Yes, I'm aware of Advantage.

    As previously stated, a £90,000 property would require a £4,500 deposit and you stated that you only had £3,000 available.

    It is not the income that is the problem, it's the fact that you do not have enough money saved up.

    Why not relax and take some time out to save up!

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • petetidball
    petetidball Posts: 143 Forumite
    As you have a degree, some banks offer better deals for graduates who had student accounts with them. Is your bank one of them? It may be worth checking out. With my bank this included a 105% mortgage (we didn't go with them in the end) at a quite good rate which was affordable and about 4.5 times our income. It is possible to get mortgages which would allow you to buy the house and I can understand that the logical answer is to save more money and get a mortgage later without a HLC added on. BUT if you really want it and can afford repayments, there are mortgages which offer a mortgage to a certain value with a loan on top to make up the difference. That could be an option but you need to talk to a mortgage advisor to find out what is practical for you.

    BTW, this is purely from my experience of buying a house. If we hadn't bought 18 months ago with a fixed rate mortgage, we wouldn't have a hope in hell of getting a house now with the interest rate rises that have come in. So it may be worth giving it a go-talk to an advisor, it can't hurt and you may be able to get the house you want.
    :confused: Pardonez mois, mais votre cheval est dans mon cochon d'inde. :confused:
    Proud to be dealing with my debts: DFW Nerd 610
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    why not try a vendor gifted deposit.

    Rather than offering 5k less, offer full asking on the basis that they pay your 5% deposit. Not all lenders will accpet this but some will and it may be possible to do what you want.

    Affordability is Key and it is possible to get a mortgage for non EU residents that are on working visas. You normally need 10% deposit though. Maybe your savings could work for you here but you still need to cover legal costs etc..

    Seeing a professional with your circumstances could help you a lot in this instance I feel.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dawsonio
    dawsonio Posts: 105 Forumite
    Thanks guys, so there is hope, I had a student account with barclays which has now turned into a graduate account so ill see if they have any special deals on.

    Very interesting to learn about a gifted vendor deposit, i suppose it could be split say 5% from me and 5% vendor deposit making a total 10% to improve my chances.

    Thanks again, i was trying to get a feel of whether it was worth pursuing or not but my rent contract is coming to an end in 2 months so think i am gonna go for it. :beer:
  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    dawsonio wrote: »
    Thanks guys, so there is hope, I had a student account with barclays which has now turned into a graduate account so ill see if they have any special deals on.

    Very interesting to learn about a gifted vendor deposit, i suppose it could be split say 5% from me and 5% vendor deposit making a total 10% to improve my chances.

    Thanks again, i was trying to get a feel of whether it was worth pursuing or not but my rent contract is coming to an end in 2 months so think i am gonna go for it. :beer:

    You could consider 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.


    Check for shared ownership properties in your area.

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • dawsonio
    dawsonio Posts: 105 Forumite
    Does any one have any names of lenders that would accept non EU residents and gifted deposits or is that info not allowed?
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