Houses for sale for £40,000?

deoni

Hi,

I have been looking to move out of my house and rent a property, but I have noticed the houses around me me are very cheap! There are lots advertised terraces for 30,000-45,000. Would it be possible for me to consider this...

I earn £17,500 at the minute and due a pay rise in the next 6 months. I have good credit, but I have a graduate student overdraft which is 0% and usually 700 overdrawn mainly as it's 0% I haven't done anything about it. I also have a £3000 loan I got to buy a car, which is £80 a month for 3 years and have never missed a payment and I regularly overpay.

With houses being so cheap and with some help off my parents and selling a lot of my things (horse wagon etc) I could have a £10,000 deposit. Is this even worth looking into or is it a no go before I even start?

Thanks

Contemptuous

With the figures given it looks like affordability would be ok, even taking the loan and overdraft into account, but the stumbling block here is that many lenders have a minimum home valuation figure of around £40,000. So you wouldn't easily be able to obtain a mortgage on a property valued under £40k, and if you picked a slightly more expensive home there's the risk it could be down valued to under £40k and then you'd be out of pocket for the valuation fee (if you've paid one).
A broker can guide you to the most appropriate lender/s.

pharmice

I just bought a house for £36,000 in the North-East, putting down a deposit of £7500 and a mortgage of £28,500. I didn't go through any mortgage broker, I applied through my bank (RBS). Solictor fee was £500, valuation was about £200.

Go ahead and apply to your bank directly. Get a solicitor online, and pay for a proper building survey. You don't really need a broker if you don't have a complicated credit history.

deoni

Thank you.It's worth a try then!

deoni

My bank natwest have given me a mortgage in principle and the man I spoke to said it is highly likely to go through! Anyone have any tips or experiences?!

wymondham

deoni wrote: »

Anyone have any tips or experiences?!

Buy a good DIY book! congrats!!

dimbo61

You have gone from being £700 overdrawn most months to having a £10,000 deposit which is a 25% deposit on a £40,000 property and therefore 75% LTV
Lenders will want to see where the £10,000 has come from and if a gift from parents they will have to sign a letter to say that it is a " Gift"
They will ask for the last three months wage slips and bank statements so try and reduce all spending and build up savings your self.
Start off by NOT going overdrawn this month