What are my chances

Legacy_user

I have posted about this before, but refining my situation....

-Purchasing on my own
-First Time Buyer
-No kids
-No debt
-Good Credit Rating
-Hoping to buy a New Build with Help To Buy Scheme.
-House price = £215,000
-30 year Mortgage

Deposit:
-£55,000 deposit 25%
-£43,000 Help To Buy Loan 20%

Total Deposit = £98,000 (45%)

Need to borrow:
-£120,000

Income
-£25,000+

So would be borrowing 4 / 5x income.

Based on mortgage calculators online I'd be paying back between £440 - £500 per month.

I have been paying £540 per month in rent and have never missed a payment for the 2 and a half years I have rented.


All sounds positive right?.....


I am self employed and only have 1 years accounts, but I am employed as well as self-employed so have 2 jobs.

Although I only have 1 years accounts - do you guys think that with my own decent deposit + the Help To Buy loan + the rest of the positives of my financial situation that I could convince a broker to help me out despite the 1 year account 'problem' ?

csgohan4

Whats the income splits for employed and self employed?


with just 25000 that may not be enough for 120k you need to borrow, it will probably be less since you only have 1 years of accounts.


1 years accounts will limit you to the number of mortgages available to you.


Paying your rent on time is irrelevant, the lenders want to see affordability and any adverse credit reports. Have you obtained your reports from all three agencies and seen any issues. Credit ratings don't mean much, it's the history such as CCJ, late payments e.t.c.

Chocolatefund

Can you still actually get x5 your salary anymore post MMR?

I guess it depends on your circumstances.

pmartin86

Just one thing to consider, how do you intend to finance the help to buy part of the loan? my understanding is that after a set period of time (I beleive 5 years?) they start attracting annual fees, so looking at repaying that within the 5 years should also be something to consider, something int he back of mind is making me think this is called "staircasing"

Paul

kingstreet

Chocolatefund wrote: »

Can you still actually get x5 your salary anymore post MMR?

I guess it depends on your circumstances.

Not on HTB you can't!

Lenders take into account 3% or 4% of the equity loan in affordability and the HTB calculator uses a maximum of 4.5 x income, a 45% debt to household income ratio and a 4.8% mortgage rate.