first time buyer, can I get a mortgage on NMW

nintendosam

Hi,

I am looking to buy my first property and I am currently on NMW. I have savings put aside and house deposit ready. The house is £90000 and I have 10% available for the deposit. My salary is likely to increase but cannot be sure yet.

I have no loans or credit cards on file.

What are my options please ? Who are the best people to speak to and what is the best mortage ?

Thanks in advance.

kingstreet

There is no mortgage which is best for everybody.

An independent broker would have the most options for you to consider and lenders have different calculators for affordability, so you won't just have one amount you can borrow. The broker will work through this with you.

Affordability also takes into account the term of the mortgage and things like ground rent and service charges if you buy a flat. Again, this means what you can borrow will vary from lender to lender.

Babbawah

nintendosam wrote: »

Hi,

I am looking to buy my first property and I am currently on NMW. I have savings put aside and house deposit ready. The house is £90000 and I have 10% available for the deposit. My salary is likely to increase but cannot be sure yet.

I have no loans or credit cards on file.

What are my options please ? Who are the best people to speak to and what is the best mortage ?

Thanks in advance.

Will £80,000 mortgage payments be affordable on NMW?

You need to do some homework. There are plenty of mortgage calculators available online for you to be able to work out a monthly budget.

Can you survive on what's left after the mortgage and bills are paid?

This is what ANY lender is going to ask themselves !

Generally, it is considered comfortable to borrow 3x your yearly income but borrowing £80k on NMW is going to put you firmly in shark territory.

I cannot see a responsible lender taking the risk.

ACG

In short no.
£6.50 x 40 (hours) x 52 (weeks) = £13,520 as an annual wage.

Lets assume you can get 4x your income thats £54k mortgage, add your £9k and your at £63k. At best you may close to £70k but I cant see you getting much more than that.

nintendosam

Babbawah wrote: »

Will £80,000 mortgage payments be affordable on NMW?

You need to do some homework. There are plenty of mortgage calculators available online for you to be able to work out a monthly budget.

Can you survive on what's left after the mortgage and bills are paid?

This is what ANY lender is going to ask themselves !

Generally, it is considered comfortable to borrow 3x your yearly income but borrowing £80k on NMW is going to put you firmly in shark territory.

I cannot see a responsible lender taking the risk.

thanks for the advice all.

I did consider that and its my main concern. I will try to increase my deposit and save more. Will also try to get more cash by borrowing from friends.

Will consider speaking to a broker at my bank @kingstreet.

kingstreet

Your bank doesn't have brokers.

It has people there to sell you their employer's products. It has one affordability calculation and limited products for you to choose from.

An independent broker will match your circumstances to the lender which would best suit your needs.

DpchMd

nintendosam wrote: »

thanks for the advice all.

I did consider that and its my main concern. I will try to increase my deposit and save more. Will also try to get more cash by borrowing from friends.

Will consider speaking to a broker at my bank @kingstreet.

Borrowing from friends won't help

nintendosam

ACG wrote: »

In short no.
£6.50 x 40 (hours) x 52 (weeks) = £13,520 as an annual wage.

Lets assume you can get 4x your income thats £54k mortgage, add your £9k and your at £63k. At best you may close to £70k but I cant see you getting much more than that.

what if i have a bigger deposit ?

guess i will have to find somewhere cheaper....or

I have also heard about government help to buy, is that for new build properties only ?

cheers

nintendosam

kingstreet wrote: »

Your bank doesn't have brokers.

It has people there to sell you their employer's products. It has one affordability calculation and limited products for you to choose from.

An independent broker will match your circumstances to the lender which would best suit your needs.

ok thanks, will look into one for more help.

nintendosam

DpchMd wrote: »

Borrowing from friends won't help

they are happy to help and offer me cash as a loan....i will of course re pay it back.

ACG

Your income will only allow you to borrow a certain amount. Anything above that would need to be a deposit.

Help to buy does not allow you to lend more, it allows you to use a smaller deposit so will be no good for you.