FTB £30K deposit, approx £1K monthly pay..chances for mortgage???

userreal

Hi All
Have been lurking on the forums for a while but need an idiot's guide to FTBuying!
Even if something seems basic and common sense to you,still please could you throw it my way-All advice will b greatly welcomed.what would b total value of property I could afford?


Here's my scenario:
-£30 deposit, approx.1K monthly pay (P/T) before tax reduction
-never had an overdraft,
-have only 1 New Look card,used it just once,they owe me a few quids as I paid extra by mistake


please please, tell me if d numbers allow me to be in a buyable situation,or I need to build up deposit or be flexible elsewhere etc?
Many thanks
ureal

Landofwood

You need to build a proper credit history. A new look card isn't adequate.

Assuming your credit is good you could buy a property worth around £80k

Pixie5740

It depends on what sort of property prices you are looking at. Have you tried using a mortgage calculator on a bank or building society's website to give you a rough idea of how much you could borrow?

userreal

Landofwood wrote: »

You need to build a proper credit history. A new look card isn't adequate.

Assuming your credit is good you could buy a property worth around £80k

thank you fr yr response...much appreciated.
exactly d sort of advice I need...could you pls suggest ways of building a proper credit history??up until now, iv always believed in spending money dat is mine ,but dats not d case for getting a mortgage!

userreal

Pixie5740 wrote: »

It depends on what sort of property prices you are looking at. Have you tried using a mortgage calculator on a bank or building society's website to give you a rough idea of how much you could borrow?

thanks pixie..



mortgage calculatrs dnt quite mke sense to me( I know silly me), I feel dey r fake n jus givng me random numbers)


what would I need to hav in place/ or do for property around £130-140K??

BlaEm

Read this on improving credit scores:
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
Key one is make sure you're on the electroral roll, and build up some credit history in the way of e.g. mobile phone contract, credit cards etc, and avoid multiple applications in a short period, which will leave a mark on your credit history.
If you take out a credit card, pay it off in full every month - exactly like spending your own money, except with a 30 day delay

Mortgage calculators don't give random numbers - they generate an amount based on your annual income. Some banks are more generous than others, but I don't think you'll ever get above 5 x your annual salary.

So, your salary is £12k p/a, x 5 = £60k. If you want to buy a property for £130-40k you need to save up an extra £40-50k deposit.

Pixie5740

I'm not a mortgage broker but I'd say that trying to borrow £100k to £110k on an annual income of £12k is non-starter. Really to buy a property valued at £130k to £140k on your salary you'd need a deposit of about £100k.

J_i_m

I definitely think you'll have to lower your expectations, which might mean making some major compromises or moving out of area.

To put it into perspective I earn £17.4K a year and my research tells me that the upper range of what I can expect to borrow as a mortgage is £78k, add that to my deposit, £20k and my overall budget is still under £100k.

On £12k a year, I think you can expect no more than 60k on a mortgage, possibly less because £1k a month isn't a lot to live on and lenders now work on stricter affordability criteria.

In my area flats are on the market from £115-130k, so you can imagine that I'm already fearing being priced out or considering less desirable areas.

ellesbellesxxx

I just input the figures you have given into Halifax just to give you an idea.
Income, then deposit... you would expect to be able to borrow 50,000 so exactly like the great advice from other posters, you would only be able to afford a property for 80k which would cost over 25 years on a fixed rate 230ish a month. This would be before any other costs, leaving you quite tight (judging by my own experience)
Might it be worth you saving for a couple more years? Don't forget there are costs such as furniture, conveyancing, a good emergency fund...
I lost my job when I had literally just exchanged on my first house. (I had been told that I would be made permanent, then they didn't have the money for an extra class so my fixed term contract came to an end!)Luckily, I had a jobfrom my student days that I went back to in the summer holidays before managing to get more work... just from my own experience, it was really tight for a while and I am so lucky I had supportive parents to make sure that I was ok. But... if I could do it again....