Can I afford a mortgage?

Rosiemoore

Hi, newbie here. I am a single 35 yr old girl (ok, woman, lol!) And hoping to get my first mortgage soon... Currently living with my parents, although I have rented quite a lot in the past.

My current salary is only about £15,000 but I have around £20,000 from an inheritance to put down as a deposit. I have fallen in love with a gorgeous 1-bedroom flat with its own little garden, in a lovely quiet area, which is on sale on a shared ownership scheme, the share price is £87,000 for a 60% share.......... I am really hoping I will be accepted... if I put down a £20k deposit I will be aiming to get a mortgage of £67,000.

How likely is it that this will be accepted on my current salary?

I have had a couple of job interviews recently for jobs paying £20k and was very close to getting them so I don't think I'll be on a lower wage for much longer - I just don't want to miss out on this great property as it's perfect for me!!! :cool:

kingstreet

Leeds BS affordability calculator indicates a maximum mortgage of £56,971, based on a 25 year term and no dependents or credit commitments.

I've assumed shared ownership rent of £133 per month on the unowned 40% share of £58,000.

Even a 35 year term leaves a shortfall, as £67,000 appears unaffordable.

Rosiemoore

Well I've calculated I can borrow up to 65,000 on some sites...

Is there any scope for me to make an offer, or buy 50% instead of 60% perhaps?

My bank have told me they can lend up 4 or 5 times salary depending on the mortgage application at the time..... 5 x would be 75,000 and I only need 67k... just depends on my credit check though I guess...

I have had an overdraft for a long time but currently am in credit. I find it hard not to end up in my overdraft before payday but i am sure thats quite common...

~Beanie~

Even if they would lend it to you (which I doubt), could you afford it?

A 67K mortgage over 25yrs at 4% come out at over £350pm and then you would have the rent on the other share to add on top of this. Plus council tax, bills etc, could you afford it on £15,000pa?

I earn a little bit more than you and do have a mortgage, but up until recently I had to have 2 jobs in order to pay for it. It was all very well working it out on paper (I could afford it) but the reality was somewhat different (I couldn't really afford it) and so I ended up with 2 jobs for over 10 years in order to pay the mortgage and still have a life.

angelsmomma

Rosiemoore wrote: »

Well I've calculated I can borrow up to 65,000 on some sites...

Is there any scope for me to make an offer, or buy 50% instead of 60% perhaps?

My bank have told me they can lend up 4 or 5 times salary depending on the mortgage application at the time..... 5 x would be 75,000 and I only need 67k... just depends on my credit check though I guess...

I have had an overdraft for a long time but currently am in credit. I find it hard not to end up in my overdraft before payday but i am sure thats quite common...

Can I just say that being in your overdraft before payday when you still live at home shows that you can't afford it.

noisla

I've found you need to show 3 months' payslips to get a mortgage (or more). So changing job could actually be problematic in the short term.

The best place to start is by speaking to a bank / broker and try getting a mortgage agreed in principle - they will run through their affordability criteria with you, and give you an idea of what you could borrow. You should ideally do this before even starting to look for a flat (perhaps asking them to stop short of running a credit check, if you don't want that marker on your file).