First time London property buyer looking for a mortgage

Dunney77

Hi all,

Completely new to the property game but I have unfortunately been offered the opportunity due to unforeseen circumstances.

I stand to inherit an amount of money which would give me a £130-£140k deposit.

My background:
- 24-year-old law graduate
- £30k salary
- Roughly £10k bonus
- No debt

As there is not much affordable housing in London, I am looking at 2-bedroom properties worth £350-£370k.

My initial understanding is I would not be able to obtain such a big mortgage to buy such a property because it is over x4.

However, my plan is to bring in someone for the second bedroom (I would also live in the house) which would make my mortgage payments much bigger. Is this even possible? Not sure how this can be done.

How can I get a bigger mortgage?

Any help would be much appreciated

Contemptuous

When you say bring someone in, do you mean a lodger?

If so, lenders won't take the rent from the lodger into account so that's not an option for you.

The most you could look at borrowing would be around 4.5 x your salary, so you need to be realistic in what you can afford unfortunately. There's no way around it.

csgohan4

Why the rush to buy now? Invest the money sensibly and wait for your salary to reach a high figure for the multiplier to work for you


In the meantime don't take any debt or CCJ and be mindful of your future plans for buying. Just because you got into some money, doesn't mean you have to blow it all.


I would also avoid getting one of your friends or relatives to join you on the mortgage. Money and friends simply do not mix when things down south.

Dunney77

csgohan4 wrote: »

Why the rush to buy now? Invest the money sensibly and wait for your salary to reach a high figure for the multiplier to work for you


In the meantime don't take any debt or CCJ and be mindful of your future plans for buying. Just because you got into some money, doesn't mean you have to blow it all.


I would also avoid getting one of your friends or relatives to join you on the mortgage. Money and friends simply do not mix when things down south.

Given the speed at which property prices are rising in London, I don't want to be left behind in case my salary does not rise fast enough and I am thus priced out of the market.

You're right, I wouldn't get a joint mortgage for exactly your reasons!

So realistically I could only purchase a property for £250/60k and then have a lodger who would at least make my mortgage payments siginficantly smaller?

csgohan4

As someone said earlier, your lodger's payment would not be taken into account for the mortgage application.


260-280k to buy in London is possible, but it will be far out from the city where you work.


Maybe buy a small flat to rent out

amnblog

You are clearly not looking far from London at those prices.

Have you considered shared ownership inside London? Buy a share you can afford now and more as your career progresses.