Can I Do This Myself?

no1wf

I'm 25 and currently only working part time at the moment, but there may be some opportunities for me to take on more hours at work, obviously I'm not going to get anywhere mortgage-wise on part time so wouldn't start anything until I was full time but until then I'm doing lots of overtime to boost my savings.

My boyfriend point blank refuses to get a mortgage and buy a house and I refuse point blank to rent. In my eyes I would rather the security of owning my own home and if we rented first it would be a lot harder to save up anything if he changed his mind later down the line. I think we're in a good position now to save up as we both live with our parents.

I was just looking to see if it's possible to do this by myself and if anyone else has done it. Houses around here can be as little as 80k but the ones I like the look of are about 98k-110k. I'm thinking of using this time at home to save up around 20k as a deposit and get a mortgage for 120k max. As far as I'm aware I won't have to pay stamp duty but obviously there are other fees.

I'm just concentrating on saving as much as possible at the moment, I think lenders need to know how much you make a year to be able to work out if you can afford it and how much you'll need to pay back each month but I would have my boyfriend living with me and he would help out.

Is there a minimum you can earn per year before lenders won't bother with you? I have a fear I won't be earning enough even at full time. What do you think?

Building_Surveyor

think you will need to detail your income first of all, then any credit commitments, dependents (i.e children) etc - before anyone will be able to offer any real advice.

beecher2

You say the houses you want are max of 110k but then say you'll be spending 140k - if you pay more than £125,001 you will pay stamp duty.

You don't say what you earn but your boyfriend's wages won't be taken into consideration if he is not going on the mortgage. Maybe see where you are when you have your 20k saved - have you any idea how long it'll take you to do so?

no1wf

Building_Surveyor wrote: »

think you will need to detail your income first of all, then any credit commitments, dependents (i.e children) etc - before anyone will be able to offer any real advice.

Currently only £450 a month income with expenses being

£40p/m petrol
£60p/m insurance
£80p/m rent
£26p/m phone

No children, no loans or anything like that

beecher2 wrote: »

You say the houses you want are max of 110k but then say you'll be spending 140k - if you pay more than £125,001 you will pay stamp duty.

You don't say what you earn but your boyfriend's wages won't be taken into consideration if he is not going on the mortgage. Maybe see where you are when you have your 20k saved - have you any idea how long it'll take you to do so?

Ah right so if I wanted a 110k house with a 20k deposit I would only need to borrow 90k? Sorry I wasn't sure if the deposit was included in the borrowing or not, I just want to have a big a deposit as possible to get the best chance of being lent and lending as little as possible and making the payments easier.

Currently £450 a month with expenses as listed above. I'm doing as much overtime as I can, currently I have £3,100 savings but I'm hoping to get extra permanent hours in work. This month alone I'll take home almost £400 extra in overtime but as it's not guaranteed I've no idea how long it will take. Boyfriend is on a 6 month temporary job at the moment so I'm going to see where I am at the end of his 6 months.

My idea was that if the mortgage is tailored for me like the repayments are managed for me so it's easy enough to pay them back, when we live in the house my boyfriends extra income (hopefully permanent job by that time) can help pay some bills, or help with the mortgage if I'm struggling one month or help with overpaying it. Does that make sense?

~Beanie~

Well a 90K mortgage over 25 years at 4% will cost about £480 per month so you are seriously going to have to up your income!

Lenders don't tailor the mortgage for you and manage the repayments for you so that they are affordable, they will lend you a maximum amount based on what you earn.

For an example, a 90K mortgage would be 4 times your income if you were earning £22,500 per annum, which you obviously aren't.

I don't think you will be able to afford a mortgage wthout either a sigificant increase in earnings or getting a joint one with your boyfriend.

bowlhead99

If you have great credit history, and no dependents or significant outgoings, and a 20k deposit, you may be able to borrow 80-90k if you are reliably earning (i.e. permanent job) £20k+ gross per year. It doesn't sounds like you are yet, and that level of borrowing would be at the high end of the scale, 4-4.5x the 20k salary.

Borrowing many times your annual gross salary is difficult, generally 3-3.5 x your salary is a good rule of thumb, so you'd want to be earning 25.

Or look at cheaper houses, buy with boyfriend combining your salaries, etc.

no1wf

~Beanie~ wrote: »

Well a 90K mortgage over 25 years at 4% will cost about £480 per month so you are seriously going to have to up your income!

Lenders don't tailor the mortgage for you and manage the repayments for you so that they are affordable, they will lend you a maximum amount based on what you earn.

For an example, a 90K mortgage would be 4 times your income if you were earning £22,500 per annum, which you obviously aren't.

I don't think you will be able to afford a mortgage wthout either a sigificant increase in earnings or getting a joint one with your boyfriend.

I think the maximum I could earn if I had more hours would be 10k a year, is this not enough either? I don't know what other members are doing to have 20k+ incomes lol

Failing that then, how can I get my boyfriend to change his mind

no1wf

bowlhead99 wrote: »

If you have great credit history, and no dependents or significant outgoings, and a 20k deposit, you may be able to borrow 80-90k if you are reliably earning (i.e. permanent job) £20k+ gross per year. It doesn't sounds like you are yet, and that level of borrowing would be at the high end of the scale, 4-4.5x the 20k salary.

Borrowing many times your annual gross salary is difficult, generally 3-3.5 x your salary is a good rule of thumb, so you'd want to be earning 25.

Or look at cheaper houses, buy with boyfriend combining your salaries, etc.

That was looking so good until 20k+ a year income lol what jobs are these and where can I get one lol!

What about a bigger deposit would that help at all?

Boyfriend won't get a mortgage he hates the idea, unless he changes his mind while I'm saving up it's not looking likely

ACG

Lenders will generally go to around 4x your income (maybe 4.5)

Overtime will be taken into account to some extend but usually around 50% if they can see its fairly frequent. You really need to be earning around £20k to do this on your own.

beecher2

no1wf wrote: »

I think the maximum I could earn if I had more hours would be 10k a year, is this not enough either? I don't know what other members are doing to have 20k+ incomes lol

Failing that then, how can I get my boyfriend to change his mind

On 10k it would be very difficult to afford house ownership even with a large mortgage as you have to factor in repairs, insurance and maintenance. Your bills would also increase as you would have to pay for utilitites etc.

All you can do is keep saving and look for a better paying job - maybe look into adding to your qualifications/skills through night classes?

no1wf

ACG wrote: »

Lenders will generally go to around 4x your income (maybe 4.5)

Overtime will be taken into account to some extend but usually around 50% if they can see its fairly frequent. You really need to be earning around £20k to do this on your own.

Does a bigger deposit make any odds? You'd have to borrow less wouldn't you so a 10k income x 4 being 40k they could lend me I'd have to save up around 60k haha might as well save for the whole amount at that rate!

Dear me it's not going well for me. TBH I could probably get the boyfriend to help towards the deposit that would be a lot easier it's just getting him to save in the first place he has trouble with that