Basic Mortgage Advice for a FTB please!

Cat1

Hiya

I'm looking to buy my first property ASAP.

I'm 34 with 3 dependant children. The mortgage will be in my name only.

I earn £9k a year working part time although my total income (from child benefit / tax credits / disability living allowance) totals about £20,000.

I have a deposit of £100,000 and I'm looking to borrow about 45k in order to buy something like a 3bed ex council house.

I have had an HSBC bank account for 20years and a couple of months ago they offered me a credit card with a limit of £5700 which I didn't accept as I had no need for it.

As far as I know my credit score is good, no defaults and everything paid on time. I have a couple 0% credit cards with approx 2k on them, a car loan which will end in April and about 5k in savings / ISAs already held at HSBC.

I have worked for the same employer for 14 years.

Basically what are my chances of borrowing 45k? I'm guessing the 3 dependants and low salary will throw a spanner in the works. I don't even know where to start! Should I approach a broker first or is it worth speaking to HSBC?

Hope someone can take an educated guess for me!

ACG

I think you might need a broker on this.

It should be possible, i cant imagine toooo many issues but there might be the odd one that needs someone with some experience to overcome.

HSBC as far as im aware can be quite strict so i personally wouldnt waste my time, alternatively you can ask whether they would accept certain benefits as a form of income.

If your kids are all around 13 plus then it might prove to be a little more difficult.

Cat1

Thanks for your reply

I have a 13yr old, 5yr old and a 3 yr old:eek:

Where is a good place to start hunting for mortgage brokers?

kingstreet

I have no idea if HSBC takes benefits into account, but there are lenders who do.

Thre dependents is going to hit affordability hard. Have a play around with lenders' online calculators and see what output you get.

Halifax is here, as an example;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

shonzyd

Sorry to hear about your loss. I just wondered dont you have to declare that sort of money if you are claiming means tested benefits? Have you checked that side of things out first? I know that wasnt your original question but as benefits were mentioned and 100k is a substantial amount of money, i dont think it matters where it came from.

Cat1

Hi Shonzyd

I don't actually have the cash in my sweaty mitts at the moment - still with the solicitors.

I don't have to declare it whilst I am claiming child tax credit. If I was claiming JSA/ ESA/ Income support I would have to. When the system migrates over to Universal Credit (cases are changing over to the new system over the next 4yrs, although there will be transitional measures in place for people who already have savings) it will have to be declared. Thats why I'm keen to put the money to good use and secure a roof over our heads Fed up with being at the mercy of landlords and my son can't cope with the disruption of having to move every couple years

ACG

Friends/family can usually recommend someone. Alternatively i tend to use google for things im looking for, no reason why you cant use that for a mortgage advisor.

Cat1

Thanks ACG

Will get googling and ask about for someone!