Can I get a mortgage?

Danny30

Hi, I am interested in getting a mortgage in the next year or so but haven't had a chance to speak to an advisor yet.
At the moment I am unemployed but I am looking to get a job which will probably pay around £20,000 - £23,000 and I would have a deposit of £100,000. I am married with a child and my wife is not working.

Based on the above information what is the highest mortgage I could get?

Ideally I would want a mortgage of £280,000 - £300,000, is their any way that this could be possible? I know that one can normally borrow up to 4 possibly 5 times income but is there any way to get more? do you need a guarantor etc.?

Thanks. Dan

sulphate

You won't get a mortgage of £280k on a £23k salary.

Or do you mean the houses you want to look at are priced at that amount so your mortgage would actually be around £180-£200k. This is still a stretch on a £23k salary though.

Do you have any debts? Do you know what your credit report is like?

You will need at least 3 months' wage slips to apply for a mortgage, so I would not hasten to go see an advisor just yet.

kingstreet

£23k a year with a dependent and non-working spouse suggests a maximum mortgage of around £79k on a 35 year term. This assumes no other commitments.

With your deposit, that means a maximum purchase price of around £175k allowing for purchase fees and costs.

Danny30

The house would be £280,000 in total. I only owe about £2,500 to credit cards but could pay that off in one go. I just checked my credit rating which says 4 out of 5. Is there anywhere that I can get a more detailed credit report with only a one off payment?

Danny30

Also would it help at all to have half my wife's mothers unmortgaged house under her name?

kingstreet

It makes no difference what your wife owns.

Affordability and size of mortgage is based on income and outgoings only. Even if you repay the card debt, your maximum mortgage remains at about £80k.

Danny30

Thanks. What I don't understand though is that some friends I know have recently bought property for around £350,000. I know that there income is relatively low and they wouldn't have had a high deposit yet they have a mortgage. There borrowing I assume would have had to be much higher then 4 or 5 times.
I don't want to ask them about it as it's not my business but is there a way they could have done that, maybe with guarantors?

amnblog

You don't know their situation so you cannot compare Danny.

You can be sure they didn't borrow £300,000 with a £23,000 income.

If you want a £400,000 property with a £23,000 income perhaps you could consider shared ownership? (I am assuming you are in London)

Danny30

Ok thanks for the replies. So there is no way I could get more than 4-5 times income? maybe I need to see if my wife can work part time.

mardiemare2008

Sorry to Hijack this post, but I am unable to post new threads (don't know why), If someone would help me It would be appreciated

I am 24 and am aiming to be in my own house by the end of 2014. I am single, so the mortgage would be solely in my name and i would be looking at 2 beds around £65000. Getting a 10% Deposit for the house will not be an issue as next year I will be able to sell some shares I have purchased through my employer. My only issue is whether i will be able to get a mortgage for the remaining 90% of the house.

When I first turned 18 I was a bit of a wild child and got myself into debt, I defaulted on several accounts as I did not really understand the impact this would have. A few years ago I paid all my debts off and now manage my accounts really well and regularly check my credit file and bank statements etc.

My Credit Score is only 270!!

At the moment I still have 2 defaults on my file that have been satisfied and two late payment markers from Orange from 2011. Default dates are Jan 2008 and July 2010. I am under the impression that the 2008 default will drop off my file this coming January. But I am worried about the 2010 default. I also have a £1250 Student overdraft that I am currently budgeting to pay off. (£800 left to pay, should be able to pay back within 4 months.)


I also got a high interest credit card from capitalone last May, and have used it to try and rebuild my credit. For the last 15 months I have made purchases on the card, and paid back in full every month so I have avoided the high interest. But I have not rec'd any correspondence to suggest they would increase my limit or noticed any positive effect on my score?

Anyone know which Mortgage company would (if any) be able to help me.... and any ways to increase my credit score would be greatly appreciated

Thanks