First time buyer questions - Pls help

kaaip75

Mybackground,

Work last 5 yearswith IT company– Salary 35k

Married with 2children

Live in rentedproperty – 800 pm

Good Credit score

Applied 1stMortgage early last year but REJECTED. – I asked 200k with 10% deposit


Now I am scaredto try again thinking if I get rejected again. I have no deposit now (all spendon some other assets)

But I can go fora loan (till 25k) as it is already preapproved.

I have a propertyviewing this Saturday morning with Shared ownership property (150k = 50%). Thisis not new but nearly new as current shared owner is selling his 50%

Can you allplease read my situation & advise

1.Is it advisableto go for a already shared property?

2.Can I reapplyfor a mortgage though I was rejected last year?

3.Can I use my loanto pay for deposit & other expenses?

4.How can I get aprinciple mortgage approval without messing my credit history again?

Thanks inadvance.

diska

Is it just you thats working? With a 35K salary I would think you'll struggle to get a 200k mortgage.

Have you spoken to a broker? They have inside knowledge on which lenders will likely lend to you based on your circumstance and not reject you. May be worth speaking to them first to see realistically what you can afford before you start looking at homes.

It is however a bad idea to look at loan to pay for a deposit as will not look favourable to lenders and likely be rejected.

Edit: just reread you have no deposit. You really have no chance until you have a 10% deposit, concentrate on building one up before you think of applying. No quick way to do this other than save.

Starjust

You plan to use a loan as your deposit?
If I understand that correctly then I think there will be 0 chance of an approval.
You need good old hard cash for your deposit I'm afraid.

Bella73

Apart from the deposit how are you going to pay all the other fees involved? I find it strange that you wanted to buy a house last year and then went and spent your deposit on other things?? Sounds a bit weird to me and to be honest think it unlikely you will get a mortgage.

R_P_W

No chance! You want to borrow 20k as a deposit to then borrow 180k mortgage on a 35k salary?! Do you not see the problem with that ?

kaaip75

Bella73 wrote: »

Apart from the deposit how are you going to pay all the other fees involved? I find it strange that you wanted to buy a house last year and then went and spent your deposit on other things?? Sounds a bit weird to me and to be honest think it unlikely you will get a mortgage.

I did 2 things from my last deposit.

1. Refurbished my mums house in Sri Lanka
2. Repaid my old loan balance 12k

Do lenders want to see deposit saving before they make the decision?

grifferz

You realise that a £180k mortgage with a 90% LTV is going to be pretty bad rates; your monthly repayment is probably going to be more like £1,100 which is £300/month more than your current rent.

That's even assuming you had £20k deposit. At the moment you have no deposit (lender won't accept loan as deposit), so need 100% LTV mortgage which doesn't exist any more..

If you still had the £20k I'd probably have said wait until January when you could try the Help to Buy scheme to guarantee the other 10% then you'd have access to much better rates and hopefully a bit more savings too.

Without the savings I don't think it's realistic at all I'm afraid.

kaaip75

if I can find some money from my family, then how many months do i need to keep the deposit in my account? also is 10% deposit enough for a mortgage with my background? thanks

k0sh

Shared ownerships are a nightmare when you come to sell.
The housing association slows things really badly.

I would strongly advise saving up for a deposit. When you apply for a mortgage, the bank/building society will check your status and if they see that you have taken a personal loan and not declared it to them, well they will reject your application.

As an Estate Agent, I would check your status before accepting any offers by you and all this sounds like a lot of wasted time for you.

k0sh

kaaip75 wrote: »

if I can find some money from my family, then how many months do i need to keep the deposit in my account? also is 10% deposit enough for a mortgage with my background? thanks

Even one day is enough. although there might be some money laundering questions raised.

kaaip75

Ok everyone...thanks for all your comments & guidance. It seems only I have to build up my deposit (though it's hard with rent etc..).