Thinking of a mortgage to buy a home

Ciwan

Hello Friends

I am totally new to this, an absolute n00b.

I am married and in full time employment. I am earning £39K per annum and I currently pay £379 a month for rent.

I would like to own my home. What exactly do I need? I know I need these, but can you please expand if there is more that I need!

• Money (is it 5% or 10% of total mortgage?)
• A stable job (do I need to supply payslips and bank statement for the last 12 months? or is it 6 months?)
• ...
• ...
• ...

I have already read What fees will you pay? page and I guess there is no avoiding that, so I'm OK with it.

I would greatly appreciate any help.

I looked

HappyMJ

You really just need money.

A job will help you qualify for a mortgage but if you have money you don't need a job.

The other thing you'll need is a place to buy so get looking.

Do you know your budget?

Ciwan

Thanks for the quick reply.

I assume you mean what is the maximum price I'm willing to pay for a home, then my budget would be anything below £125000.

If you mean what is the maximum I can pay back a month, then I'd say £450.

Prothet_of_Doom

Ciwan wrote: »

I am earning £39K per annum and I currently pay £379 a month for rent.


I would greatly appreciate any help.

I looked

How much are you saving ? I ask because £39K is £2400 a month take home, and my estimate of your bills and rent are that you should have £1500 spare a month if you tried hard, to save it.

:rotfl:

In context :

When I was earning £25K, with a stay at home wife and 2 small children to feed. I was paying £480 a month mortgage, and running 2 cars.

My son IS earning £18K and paying £650 Rent (he shares half the bills with a workmate, who pays the same in rent) and he's still able to save money.

Prothet_of_Doom

Ciwan wrote: »

If you mean what is the maximum I can pay back a month, then I'd say £450.

I'd say you can afford 3 times that if you needed to.

-taff

You need usually 3 month of payslips, current bank account information, proof of identity.
You will also need to be able to afford it, so any credit you are currently paying for is also taken into account and your ability to pay will be measure on affordability.
You also need ot probably have a spotless credit report with no defaults etc.
A 5% deposit is the mimimum, 10 is better in terms of what interest you'll pay.
Have a go at this to see roughly
http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing#

Ciwan

Prothet_of_Doom wrote: »

How much are you saving ? I ask because £39K is £2400 a month take home, and my estimate of your bills and rent are that you should have £1500 spare a month if you tried hard, to save it.

:rotfl:

In context :

When I was earning £25K, with a stay at home wife and 2 small children to feed. I was paying £480 a month mortgage, and running 2 cars.

My son IS earning £18K and paying £650 Rent (he shares half the bills with a workmate, who pays the same in rent) and he's still able to save money.

I got married and took out a loan to do it, so I am paying £400 a month towards that. Also I was really bad with my finances, always buying the latest iPhone, and other gadgets ... etc.

I've only been good and wise with my money the past 4 to 5 months. In fact I am slowly paying back a massive overdraft that I have.

Right now, after paying everything and all debts and direct debits, we're left with £870 for food and petrol (one car).

This brings me to my next question, am I right that I must be out of my overdraft before even thinking about a mortgage?