Buying my 1st house / mortgage

will369

Right guys,

Basically for the past 2 years I have been renting a house with my sister. So dead money basically.

We now have to move out as the landlady is selling the house.

I am going to move in with my friend paying half the rent I was paying. This will mean I can save.

My question is regarding me getting a mortgage and buying a house.

I earn £1200 a month and my only outgoings apart from rent are phone bill. I have £5000 in savings so that can come in handy.

Can I get a mortgage and buy a house? I would get a 2 bedroom so I could rent out the room.

Sorry to be brief. Hope you can help

Thanks

hcb42

What price is the kind of house you are after

You will almost certainly need more deposit and funds for fees, solicitor etc

will369

hcb42 wrote: »

What price is the kind of house you are after

You will almost certainly need more deposit and funds for fees, solicitor etc

About £180,000 for the house.

Mum said she can lend me money if needed.

Just don't know if I could run the house on my £1200 wage

Obv I need money for myself.

But I would rent a room out for say £400 a month

oxfordmark

will369 wrote: »

About £180,000 for the house.

Mum said she can lend me money if needed.

Just don't know if I could run the house on my £1200 wage

Obv I need money for myself.

But I would rent a room out for say £400 a month

When i was looking at mortgages with Nationwide (who we went with for our house purchase), i did a calculator for just myself and i could only get a mortgage for £80 or £90k. meaning i needed at least a £100k deposit

hcb42

You would not get a mortgage with such a small deposit, I don't think you would afford the repayments either on your income.

will369

Isn't there something where the government pay half?

monty-doggy

No. I think you are confusing it with shared ownership, but that's on selected properties.

will369

I think I am on about the new 5% scheme

JimmyTheWig

will369 wrote: »

I think I am on about the new 5% scheme

Yes, it is possible to get a mortgage with just 5%.
You've got £5k savings, so you could buy a place for £100k and get a mortgage for £95k based on your deposit.
That's if you also have the money to pay for solicitors fees, etc.

Some banks allow gifted deposits (that's money given to you by a relative, not lent to you by a relative), so depending on how much your mum is prepared to help out with you could go higher.

Is your £1200 a month income before or after tax?
Even if it is after tax and you can get a mortgage for 5x salary (I don't know if you can go that high or not, but I'm certain you can't go above it) then you'd be looking at a maximum borrowing of £90k.

will369

Yeah the £1200 is after tax

JimmyTheWig

Generally when looking at mortgages people quote their annual gross (i.e. before tax) salary.