The plan to get me a mortgage! Please review :)

naff

Hi all,

Basically I would like a mortgage and have given myself a year to put things into place.

My situation and plan are as below, please review and input anything insightful. Must stress from the outset that I am pretty much a mortgage numpty. Anyway.

Me:

26, living in Bradford, a Cycle Workshop manager, 26hr week, 12k per year, help a lot of projects (university and cycling related), University graduate, Trained in a Production Control environment (was offered a new contract starting at 21k but workshop job currently suits my life style, not against working in production environment again), living in mega cheap share accommodation.

Would like:

70k property in Bradford. 10k deposit, so 60k mortgage.

Scenario:

If I managed to save/obtain the 10k deposit, had a Guarantor (either dad who's 61, good job, mortgage free or 40yr old sister, who's a research Dr earning 40k with 2 dependants and a smallish mortgage), worked to boost my Credit Rating and cleared credit cards, what sort of salary would I need to get the 60k mortgage?

Reason being some of the projects I work with have potential of generating an extra income, did originally think about self-employed but know that doesn't really register with lenders so thought about working with employer to increase my hours and so increase my base salary of 12k. Would 16.5k still be too little? What sort of Figure would be needed to get the 60k Mortgage?

Any help much appreciated!

Naff

maninthestreet

60K mortgage on 12K a year is 5 x salary.
Are you debt-free?
In addition to your 10K deposit, you will need additional funds to cover purchase costs, e.g solicitor/conveyancer fees.

naff

hence why I ask about the salary...

Radiantsoul

£12k a year is a small income(about £11k post tax). I mean you are going to have to pay council tax(say £800 year), gas/electric(say £800), telephone(est £150), mortgage payments would be £4,000+, water rates(£400). That has exhausted half year pre-tax income before food, travel, entertainment, repairs and clothes.

I am not convinced you have enough cash to run somewhere yourself to be brutally honest...

naff

It appears part of my post seems to be unreadable given the responses so far, so I'll rephrase.

What sort of salary would I require if I wanted a 60k mortgage for a 70k property with a 10k deposit?

15k, 16.5k, 18k? More?

Many thanks,

Annisele

Since you don't actually have the £10k yet, you're asking us what lending criteria is going to be when you do have £10k. In other words, you're asking for a crystal ball - which might explain why nobody has been very definite.

Historically, you'd usually have been OK if you were wanting to borrow 3x salary - so £20k for a £60k mortgage.

However, the amount of deposit needed also changes as lending criteria changes. At the moment if you've an absolutely clean credit history you can usually borrow about 95% of the value of a house. That won't necessarily be true when you come to borrow, and you might need a deposit that's more (or less) than £10k. You'll also need money for fees.

naff

There we go, spot on. Thanks for reading properly

Annisele

Well, it's not spot on really. If you were asking this question in 2006 I'd have said a salary of £15k was probably fine. You might get away with £15k, or £14k, or £18k - I really don't know what lending criteria will be.

I think £20k is a fairly safe margin, but that doesnt' make it the minimum.

naff

At least you read the post

As I say in OP I had a chance to go self employed but know lenders don't like that so I will work with employer to aim for 20k salary, which should be just about achievable.

The 10k deposit I reference is a pretty safe amount.

Thanks,

tango

To be honest I am surprised anyone replied . People took the time to post, it may not have been 'spot on' but they made an effort....

naff

Why surprised? I explained my situation and asked a question regarding salary. I wouldn't post on here if I didn't expect replies to be helpful, surely?

Think people saw 12k salary and 60k mortgage and made assumptions without reading the rest of the post, I know I couldn't get a mortgage with that, which is why I asked the question of how much of a salary would I need.

I appreciate that people have acknowledged this post and replied but surely if I was to ask you a question of 'What's 5 + 5?' and you reply with 'He was a king' it doesn't really help, which is why I was appreciative of Annisele response.