Buying a house...will we get a mortgage and how much

vernall

hi guys,

complete housebuying novice here so please excuse my dullness lol

a friend and myself have decided to get on the property ladder and buy a house together.....his dad is gonna give my friend £35,000 towards buying a house but his dad has his house for sale for £170,000 so we could effectively have that house for £135,000,he would knock the house down by £35,000

my friends take home pay is approx £1200 a month,currently house shares with someone so only pays rent and bills and has a car loan of £165 a month with less than a year to go,slight overdraft and approx £5,000 in savings

i am self employed and my last 3 years accounts show earnings of 15,567 18,028 21,940....after expenses that is 14,163 16,451 19,471.....i live at home so only pay a small rent,have no hp commitments or debts,no overdraft and approx £11,000 in savings

we would like to keep as much of our savings as possible to buy furniture,appliances etc and the house needs a little work doing to it

both had no problems with credit or anything in the past so should both have good credit scores

both bank with barclays,not that that makes much difference i guess

would we even get a mortgage?

would we get one for the amount we need?

what roughly would the repayments be a month?

what type of mortgage would be the best to get for our circumstances?

any help or advice greatly appreciated

thanks

homer_j_3

it is impossible for anybody to tell you what your monthly repayments will be other than to say that you need a mortgage for 135k and if you use an online mortgage repayment calculater tool then use interest rates of 6-7% and that will give you an idea.

It is also impossible to tell you which type of mortgage is right for you as we do not know your preferences or attitude to this.

The mortgage amount does seem feasible to be fair from the figures you have quoted and I would use a mortgage broker to find ou the best deal.

I would also give consideration to how you buy things for the house in case you want to move on in a few years time - it will be pretty difficult to cut the sofa in 2 if you see what I mean.

chivers1977

Barclays will give you a Pre approved mortgage limit if you are both customers which is sometimes outside normal lending

inmypocketnottheirs

Broad brush strokes here.

You have an indicated income of say 20k, your pal if they take home £1200 per month would be roughly the same.

Thus joint income of 40k. Should be relatively easy to get 3x joint salary = 120k. Purchase price of 135K would mean you would need to come up with a joint deposit of 15k.

In reality, you probably can get a decent broker (whole of market) to shop around and get you a deal for the whole amount.

If the property really is worth 170k, then you won't be over borrowing, and everything should be quite comfortable.

HTH

homer_j_3

normally a lender wil average the ast 3 yrs net profits - i used 20k for your friend and about 17k for you. With a combined income of 37k, this equals 3.64 x joint income.

With debt of 165 per month - this will be still possible.