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Question for the brokers I think - please advise if this is possible

edited 30 November -1 at 1:00AM in Mortgages & Endowments
10 replies 998 views
DanniellaDanniella Forumite
107 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Ok here goes;

Hubby - £20,000 yearly (self employed income - been self employed 10 years).
Me - NHS worker - £13,800 yearly
CB - £136 per month
Tax credits - £299 per month
DLA - £307 per month


Looking for a mortgage for no more than £180K (we only have a 5% deposit/equity), saving with 3 kids is pretty hard!

Our bank have offered us no more than £160k.

Is the house we have seen to buy out of our reach?

Many thanks for your help.

Replies

  • Have you thought about buying a new build with Help to buy, you only need a 5% deposit, they give 20% and remaining is mortgage, so for a house worth 180,000, you'd only need a deposit of £9000
  • ACGACG Forumite
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    Whos is the DLA? I only ask as you are both working.

    I think £180k is going to be a touch on the high side, it might be possible but its unlikely something we can confirm on the forum as its very very tight.

    I think you need to book an appointment with a good experienced broker to give you the best possible chance as I suspect some brokers on this would just dismiss it outright. There are some lenders for instance who will completely ignore child care costs which could really help in your situation?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreetkingstreet Forumite
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    We don't know your definition of "self-employed income" so that needs further checking. We don't know if your income is all basic, or any of it is variable. We don't know if you are on a fixed/temp contract. We don't know the history/future of the DLA. We don't know if any of the tax credits are for child/childcare which isn't taken into account by some lenders.

    Why not appoint a broker of your own to run lender criteria checks and affordability calculations for you following a factfind?

    TBH you're asking a broker on here to do this for you/another broker and that's a bit too much like unpaid work, as far as I'm concerned.

    It's not an "off the top of your head" answer and could need ten or more lender criteria checks and affordability calculations.

    ACG posted while I was musing...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Have you thought about buying a new build with Help to buy, you only need a 5% deposit, they give 20% and remaining is mortgage, so for a house worth 180,000, you'd only need a deposit of £9000

    Yes we had thought of a new build and we are on the waiting list. However the new phase isn't released to the general public until about July/August. I like new builds but I prefer the older style houses to be honest plus we are about 14th on the waiting list for 6 houses so I wonder if we will even get a phone call.
  • ThrugelmirThrugelmir Forumite
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    ACG wrote: »
    Whos is the DLA? I only ask as you are both working.

    Disability living allowance (for a child aged under Under 16).
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • ACG wrote: »
    Whos is the DLA? I only ask as you are both working.

    I think £180k is going to be a touch on the high side, it might be possible but its unlikely something we can confirm on the forum as its very very tight.

    I think you need to book an appointment with a good experienced broker to give you the best possible chance as I suspect some brokers on this would just dismiss it outright. There are some lenders for instance who will completely ignore child care costs which could really help in your situation?

    The DLA is our eldest daughter's. She is registered disabled. I am her official appointee with the DWP.

    I have asked my friends and family if they could recommend a broker and am awaiting their replies. I don't know any brokers myself and I don't just want to "pluck one" off the internet.

    Thank you for your reply.
  • kingstreet wrote: »
    We don't know your definition of "self-employed income" so that needs further checking. We don't know if your income is all basic, or any of it is variable. We don't know if you are on a fixed/temp contract. We don't know the history/future of the DLA. We don't know if any of the tax credits are for child/childcare which isn't taken into account by some lenders.

    Why not appoint a broker of your own to run lender criteria checks and affordability calculations for you following a factfind?

    TBH you're asking a broker on here to do this for you/another broker and that's a bit too much like unpaid work, as far as I'm concerned.

    It's not an "off the top of your head" answer and could need ten or more lender criteria checks and affordability calculations.

    ACG posted while I was musing...


    Many thanks for your reply.

    My husbands earnings is the figure I get from the accountant that tax credits need every year. My earnings are fixed although there is a possibility for me to go full time later this year. I have been permanently employed by the NHS for nearly 3 years.

    The DLA is our eldest daughter's however I am her official DWP appointee since she has learning difficulties etc.

    I dont understand what you mean by a "factfind" - sorry this is the first time I have sold and bought a property.

    I would never ever ask for anything for free and so I apologise if that is how it has come across. I didn't realise that mortgages were now as complicated as they are. I would love to "run it by" a broker but I don't know one and don't want to just pick one from the internet.
  • Thrugelmir wrote: »
    Disability living allowance (for a child aged under Under 16).


    The DLA is for our eldest daughter who is almost 21. Since she cannot manage money through learning difficulties etc, I am her official DWP appointee.
  • ThrugelmirThrugelmir Forumite
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    Danniella wrote: »
    The DLA is for our eldest daughter who is almost 21. Since she cannot manage money through learning difficulties etc, I am her official DWP appointee.

    The allowance isn't given to purchase a property though.

    Over 16 the allowance is now becoming a PIP (personal Independence Payment).
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • kingstreetkingstreet Forumite
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    The process of fact-finding is what your broker will go through to establish the information needed to find a solution to your requirements.

    I wasn't asking for answers to questions. I was pointing out how a broker wants/needs a lot more detail than what can be provided in a post on here.

    I wasn't suggesting you want something for nothing, but that you need a broker and that broker will need to do the legwork to earn their fee. By asking what you are on here, you are effectively asking a broker to tell you if this is possible, which requires as much work as your broker will be paid to do.

    Concentrate on finding a broker with whom you can work. If you can't get a recommendation from friends/relatives use https://www.unbiased.co.uk, switching off the sponsored-ads only option so you get a full list of people in you are you can contact and "road-test".
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
This discussion has been closed.
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