mortgage calculator not even enough to buy a house...

Jacko_amz

Hi everyone,

Me and partner are wanting to buy a house, due to his bad credit etc i will be applying for a solo mortgage. when filling out a mortgage calculator for a rough guide it comes up with about 100k mortgage, i earn 25k a year and have about 8k deposit. within the areas we are looking at there is no houses for that cheap.

is it just a case of well that's tough get a bigger deposit? or are mortgage calculators not the be all and end all.

for a decent 2/3 home around our areas it would be about 125k.

also does anyone have experience of help to buy schemes?

Amy x

Guest101

You need to speak to a broker, some bad credit wont preclude you from buying a house.

If your signature is correct, then you have a £4,000 debt, so actually you have a £4k deposit.

Red-Squirrel_2

The mortgage calculators are pretty accurate if you put your details in honestly. 4.5x annual income seems to be about the upper limit of borrowing.

However, unless your partner's credit is truly truly terrible, or he's had a house repossessed in the past, I bet there will be lenders out there who will give you a joint mortgage, although the interest rates might be a bit higher.

You'd need to see a broker, possibly one who specialises in 'adverse credit'. It might not be as bad as you think. I thought I had bad credit until I met with my broker who told me I was completely overreacting and got me a 2.7% mortgage!

If you post on the 'Mortgages and Endowments' board here there are a few really good brokers who are regular posters and really helpful.

Jacko_amz

thank you for replying i am going to make an apt with a broker soon to get my questions answered.

Pixie5740

An £8k deposit for a £125k property is a little over a 6% deposit. Is that £8k purely for a deposit or will some of that money be used to fund surveys and solicitors?

Jacko_amz

we have 10k so keeping 2k for the fees etc, i think we are just going to have to wait a couple of years.

pinkshoes

Jacko_amz wrote: »

we have 10k so keeping 2k for the fees etc, i think we are just going to have to wait a couple of years.

Sounds sensible. You need to be looking at at least a 10% deposit, so try and live frugally and save as much as possible!

Pay off that debt too, as it will count against the amount you can borrow too!

joffie12

Try Halifax, really helped me as a first time buyer.
I would aim to discuss with an advisor but I would say 10% would be about right.

moneyistooshorttomention

Jacko_amz wrote: »

we have 10k so keeping 2k for the fees etc, i think we are just going to have to wait a couple of years.

Amended to "we have £6k" (allowing for paying off that debt first) and I think maybe £3k would be more realistic for fees, etc (bearing in mind the risk of a vendor wasting some of that money for you - eg a bad survey meaning the need to reject a house after all).

End result = you have £3k for a deposit in actual fact. Yep...that means a wait.

deaston

I tried really hard, shopped around, researched deals etc etc. I'm lucky that I earn very well and had a very large deposit (50%) and I managed to get 4.7x my income, so I'd be surprised if you managed to borrow more.

Don't bother with a broker. Waste of time.

Pixie5740

I disagree that brokers are a waste of time. Especially in the OP's circumstances; FTB, high LTV and one of them with a bit of a checkered credit history. A good whole of market broker is worth his/her weight in gold and will help them find the right mortgage for them.

OP once you've built up a bit more of a deposit and spoken to a broker you might find that your OH can apply for a joint mortgage with you after all.