Would I get a mortgage?

richb87

Hey everyone!

I figure this is probably the best place to get advice of this sort..

So I want a mortgage, Im sick of renting... no matter how nice it is its just never yours.
Me, my partner and 2 young children, we are on a fluctuating income due to me being self employed
we get child tax credit, working tax credit and child benefit also my wages which is nothing for weeks then 300- 500 per week for a while, Its dodgey I know! but surley im not the only self employed person facing this problem.
When it comes to property we know what we want...
neglected
in need of attention
possibly abandoned or slightly derelict

Okay im probably going on abit...
Any help would be apreciated a great deal!

Rich

Thrugelmir

Deposit saved?

richb87

We only have about £1100 in the savings so far. obviously a small amount when it comes to property but we only want a small mortgage

Annisele

How small is a "small" mortgage?

richb87

Ideally 40 - 50k

ACG

Do you have any accounts?
If not it MAY not be an issue - although it depends on the age of your kids and how much of each of those benefits you get.

The other issue i can see is a derelict building is not going to be of interest to a lender to lend against. They will want something they can sell on with ease if you were not making your payments. You might get a away with a "do a upper" but you wont get away with an all out ruin. (As an example i bought my house on the cheap as it needed re-wiring and had no GCH and has had no decorating done since the 70s - lenders would lend against it as its a solid building, just outdated internally).

Can you give us a breakdown of the benefits?

Im off to bed now, but im sure someone will answer before i get out of my pit in the morning, otherwise ill answer hen i get up.

richb87

Hey ACG, thanks for taking the time to reply.
we have a 4 year old boy and a 2 year old girl.
The benefits we get are -
Child benefit - £33 p/w
Child tax credit - £113 p/w
Working tax credit - £68 p/w

I do have a record of accounts but only 7 months worth.
I understand them not lending on all out ruins. There is a bungalow by us that has been empty for about 6 years and is overgrown some windows smashed etc that sort of thing is perfect for us, Iam a plasterer and we have a family full of trades to chip in.
would lenders consider anything providing its a solid structure with roof intact?
We also have a pretty good credit report with lots of ontime and early payments.

ACG

The usual requirements are - hot water, bathroom, kitchen, secure doors and windows. Even if theyre not the best its a usual minimum requirement - if its been up for a long time you could maybe make an agreement with the vendor seperately to fix the windows and then you would pay them back after completion maybe?

The tax credits wont be enough to get you the mortgage, you might get away with one years accounts but i think your going to need a 20% deposit possibly even 25%.

richb87

That sounds like a good idea ill keep it in mind. 20- 25% is a big deposid for a smaller mortgage is that because im self employed do you think?
Thanks