First time buy help

On_Stanley_on

Afternoon all,

I am looking at buying my first house but I'm really struggling with understanding how much I can afford.

I am looking for a 4 bed house (or 3 with room to extend) and it looks like for a house I could move into would cost from £125k upwards where as a 3 bed that could be extended would be around 100k up. I have a deposit of £50k but when I checked on what I can afford (based on salary) was only £50K.

Can I do anything to increase what I can afford? I am paying more in rent than I would be paying on a mortgage for £150k! So it seems a little silly.

I'm guessing its going to be a case of thats all I'm going to get and their is nothing I can do. I'm just very frustrated as renting is just dead money and I appear to have a good deposit!

Dave_Ham

First step is what is your salary, ongoing financial commitments and any dependents?


Will then be able to answer the rest, as lenders all have different multiples/affordability measures.

On_Stanley_on

Dave_Ham wrote: »

First step is what is your salary, ongoing financial commitments and any dependents?


Will then be able to answer the rest, as lenders all have different multiples/affordability measures.

My salary is £15500 I currently have no kids. The only outgoings I have at the min is £50 mobile phone bill and £40 child maintenance.

Dave_Ham

You can certainly achieve more than you have found (subject to the detail)


This will top out somewhere around £75k borrowing, maybe £80k with a strong credit file stable employment etc.


Given your salary, questions almost certainly will be driven towards the source of deposit so be able to verify this in advance.


Good luck

On_Stanley_on

Dave_Ham wrote: »

stable employment etc.


Given your salary, questions almost certainly will be driven towards the source of deposit so be able to verify this in advance.


Good luck

This is my next issue, I have only been in my job for 3 months (spent almost 12 months signing on!!) will this count against me? as for the deposit I is part of an inheritance which has paid off all my outstanding loans / credit cards.

Dave_Ham

Unfortunately yes it is a major consideration.


Some lenders will accept this (and still will lend more than the £50k) but not necessarily the lenders that will optimise your income.


Probably looking at about £70,000, £75,000 tops now although based upon limited information.

On_Stanley_on

Morning all,

Just got another question hope someone can help.

I'm having issues with my deposit. Its a gift from my partner but it appears that the lenders will only accept a gift from Parent, Grandparent, Brother / Sister?

I have the money in my account now ready to go, I'm really concerned as with out this deposit I don't have a leg to stand on!

I have already paid out for the surveys, but don't want them to go ahead if I can't get the mortgage due to this issue. (I will want to claim my money back too).

Can any one offer any help?

Cheers

OSO

Dave_Ham

I would stop and take stock, as this is highly likely to end in tears.

Are you using a broker, I suspect not or an inexperienced one.

Keekles

Not sure how you've paid out for surveys without verifying all of this previously..?

You'll also find that many of them are non-refundable so as Dave suggests; stop where you are, take the time to work it out and then approach it at the best angle if it's possible.

Your deposit from your partner - is there a reason she's not party to the mortgage? If she's gifting you £50k I would imagine you're looking at moving in together if not already renting together.

Another issue is, some lenders will consider your recently paid debts and your attitude to debt somewhat.

On_Stanley_on

The Survey fee was part of the Mortgage application.

My Partner already has a mortgage on her house, which she lives in at the moment, the Idea is for her to move in as some point but not right now, as we are doing work on her place before looking at selling it.

I am using a broker who did mention the gift but didn't specify at the time the limit on who could offer the gift. The money was an inheritance that has been sat in my partners account for over 12 months.

The deposit is now only £30k, price for the house is £92k so I little less than stated in my 1st post.

OSO

Dave_Ham

This is unlikely to work, would get valuation postponed until you have clarification in writing from broker that girlfriend gifting and "at some point will move in"