Mortgage Potential

Gibblet

Hey there,

I'm 25 and living in Gibraltar - Currently a customer with Norwhich and Peterborough. I earn £23,000 before tax and have an annaul bonus of between £3,000 - £5,000 although I realise that because this varies and isn't gaurenteed that I can't really consider it when stating income.

I've had a 'chequered' banking past but mostly it's limited to overdraft fees with another Bank. We don't use the UK's credit check system here.

Basically, I want to finally start saving and work my way up to a mortgage and given income expected for next year, I feel I'd be able to meet and slightly exceed the 20% for the type of property I'd like to purchase next year.

However, is my income enough to allow a mortgage? Will I be forever stuck renting? Should I tell my Bank about my future plans so they can assist savings wise?

Would appreciate any advice.

Foxy-Stoat_3

You don't state a purchase price so impossible to tell.

Gibblet

Ah sorry! That wouldn't be useful

£130,000.

Foxy-Stoat_3

So you want to borrow 4.5 times your salary.....no idea about the Gibraltar lending situation. If you were in the UK with a perfect credit record then your just within borrowing limits and with a 20% deposit isn't a bad place to be.

Speak to a broker when you have enough saved.

Gibblet

Thank you for your advice.

The only real difference between here and the UK is that things are done according to internal references rather than any outside ones and that Mortgages are tailored specifically for the Gibraltar market.

kingstreet

What are you actually aiming to do?

Gibblet

Save and buy a house

Ultimately I believe attaining the deposit amount is achievable and given rent here in Gibraltar, buying and having a mortgage is much cheaper (when doable).

kingstreet

OK. So you are planning to;-

save sufficient deposit

find a property within your price range

find a lender willing to meet your requirements

agree a purchase price

perform the requirements to purchase

complete and move in?

In that respect, you're like everyone else, except you are in a lending and property market many of us will not be familiar with.

Do you have specific questions you'd like answered?

Gibblet

My main concern was in regards to my wage and if it was too low to be considered for a mortgage.

kingstreet

UK lenders don't have a minimum income, but use income multiples or affordability calculators to establish an affordable maximum amount.

I suggest you look at your local lenders' websites to see what they might lend, based on your income and see how that fits the likely purchase price of your likely property choices.