House Buying

[simon]

When it comes to house buying where do i start ?

I do not have a full-time job rite now. But i would like to know how much i could spend per month on a house when i do go full time.

I would like to spend 300 - 400 per month on a mortgage.

Is it possible to get mortgage advise from a bank before i have the money to go through with anything ?

ACG

General rule of thumb is 4x income - possibly more, possibly less depending on the overall picture.

How much is your income?
Do you have any loans/credit cards/HP etc?

[simon]

No debts.

My income will be £1,000 per month when i am full time.

4x my income ? 1,000 x 12 = 12,000 x 4 = 48,000 ? lol

Foxy-Stoat_3

You would need to have 10% as an absolute minimum, maybe 15%, in the bank as for cash deposit/legal fees/surveys before you talk to anyone.

Foxy-Stoat_3

Is that £1000 take home a month or gross?

[simon]

ok..well i will qualify for the first time buyers help where the government pay the deposit and then i have 5 years to pay it back before interest is added.

1,000 net

ACG

£1k net is around £17-18k gross?

That means in theory you can borrow around £60-70k.

I think you need to reconsider your options. Your unlikely to get a 95% mortgage for 4x income where the deposit is gifted... Forget sitting down with a bank, you will need a good broker. There is no point limiting yourself to just one lender when there are so many barriers to overcome.

When i say a good broker i dont mean one at an estate agents.

To be honest, i would hate this to hit my desk as i do not like 95% mortgages. You need a broker that specialises in them as your options are going to be quite limited.

Foxy-Stoat_3

Not that much...£10,000 is tax free now...prob £14-15k gross.

sonastin

Depending on which bank you are with, you can probably sit down with one of their advisers for a review of your finances and they can talk you through the various options. LloydsTSB used to try to get me in for a review all the time - partly to sell me stuff but they were happy to explain other bits too. Part of the whole customer-service-generates-loyalty-and-complacency gambit.

Now would be a good time because you're not actually eligible for anything so you can't be sold on any particular product yet. But they can do their best to persuade you that you have to come back to them once you are ready and in the meantime help you to understand what you need to do to be in a position to buy a house. Once you're workding full time and followed their advice and saved whatever they tell you that you need, that is the time to find an independent mortgage broker and shop around.