"Would they lend to me?" Mortgage advice needed

vexip

Hi there,

This is my first post so please excuse any mistakes or newbie questions. I have looked around and haven't found the exact answer to what I am looking for. I have been browsing the housing market for some time and think now is great time to consider buying.

I have read the mortgage PDF (great advice as a possible first time buyer) and it hints at the general borrowing rule being roughly 3.5 my salary as a single purchaser.

My personal circumstance is this, I am on a very low annual income (£13,000) but have a substantial deposit and am looking at properties under £100,000 in my area. Do lenders tend to have a minimum annual salary they consider before possibly lending? Or do I simply not get paid enough?

Pros:
I have a permanent job.
I have a brilliant credit rating, no debits, loans or defaults. Always being good with my finances.
A substantial deposit (would be 50% if I wanted to purchase a £100,000 house for example).
Receive roughly £3000 per year through the rent of a family property which goes straight into my savings account.

Cons:
In current job for 7 months only.
Low salary. However I am able to save roughly £200-300 per month through my frugality (I currently pay £350 rent bills all included).

Would you lend to me? 24 year old male. Any advice greatly appreciated.

Thanks

Thrugelmir

vexip wrote: »

My personal circumstance is this, I am on a very low annual income (£13,000)

Prepare yourself a full expenditure budget.

There's more to home ownership than just paying the mortgage.

amr547

Thrugelmir wrote: »

Prepare yourself a full expenditure budget.

There's more to home ownership than just paying the mortgage.

agree - the OP only pays £350 rent with all bills included - might be able to afford the mortgage but running the house is a different matter :eek:

Odette

If you could try get a better paying job I would but I think your rental income is something you could work on. Any promotion possibility? You have a great deposit though. If it were me I would try work on my income then apply, this is just my opinion however. What would you want and how much would it be?

dawyldthing

I earn quite abit less than you before overtime and the Halifax still gave me the mortgage, even though I weren't at the end of my probation at the time. But the house I bought was for less than you are asking for (I think the max I could have borrowed was 40k or there abouts). They all do it different. But I'll give mine as an example per month if you are living on your own
council tax @ 103
electric, gas @ 80
water rates @22 - it is cheaper than some areas
tv licence - 12.12

before starting on travel costs, car if you run one (I know I couldn't), food, going out, holidays etc. It all depends on where you live too as I know water rates is double a few doors down as they have to pay something seperate on the bill which is random.

hunnieybunniey

I think you may struggle its expensive to run a house. I know some lenders say a minium of 15000 income before they consider you i know post office and i think hsbc. I know halifax do lend on lower. I think you could get a mortgage at a max of 50000 though halifax have a minium mortgage of 40000. Sorry not much knowledge on other lenders i just got my mortgage with halifax.