advice please

ecsb

I am a 49 year old mum of a 15 year old. I have to sell the house we are living in when my daughter turns 18 and give half of the equity to my ex husband, which will be about £50000.
I don't like living where i am at the moment due to the damp and difficulty keeping it warm.I am ready to move. The mortgage repayments are affordable.
Am i likely to get a mortgage on my earnings of £10000? ( i recieve no child maintenance from ex) i too will have £50000.The repayments i am sure would be cheaper than rent.
If not i am going to have to pay all my equity out on rent as it is unaffordable to rent on mmy wages.
I really do not know where to turn. Any advice would be welcome. thanks

Guest101

You earn £10k, you have £50k, but you don't mention how much your desired house is?


1: get your ex to pay maintenance - though that's for the child, not for your lifestyle


2: child is 15, so why do you earn so little?

prosaver

Guest101 wrote: »

You earn £10k, you have £50k, but you don't mention how much your desired house is?


1: get your ex to pay maintenance - though that's for the child, not for your lifestyle


2: child is 15, so why do you earn so little?

dont you get tax credits to boost your income to 15k
I got it all the time:)

Guest101

prosaver wrote: »

dont you get tax credits to boost your income to 15k
I got it all the time:)

Me? No I don't, per annum i'm on about £30k at the minute.


The OP, I don't know. she didn't say... hence why I asked?!

HappyMJ

ecsb wrote: »

I am a 49 year old mum of a 15 year old. I have to sell the house we are living in when my daughter turns 18 and give half of the equity to my ex husband, which will be about £50000.
I don't like living where i am at the moment due to the damp and difficulty keeping it warm.I am ready to move. The mortgage repayments are affordable.
Am i likely to get a mortgage on my earnings of £10000? ( i recieve no child maintenance from ex) i too will have £50000.The repayments i am sure would be cheaper than rent.
If not i am going to have to pay all my equity out on rent as it is unaffordable to rent on mmy wages.
I really do not know where to turn. Any advice would be welcome. thanks

I own a home and I also rent a flat to live in.

The difference in costs really isn't as much as you think it is.

You can put your £50,000 in the bank and earn interest on it. You could get at least 3% interest. That would be £1,500 per year in interest which you could use to pay towards the rent on a property.

As you earn £10,000 you can afford monthly rent of £330 plus the £125 in interest and you can rent something worth about £455 a month.

I personally pay £475 a month in rent for a flat worth £110,000. To get a mortgage of £60,000 you would need to earn at least £15,000 and the monthly cost would be around £300 per month at 3.5% over 25 years (as you are 49 the term might not be possible) plus you will have service charges and maintenance costs to pay out of around £30 per month.

So....renting costs you around £455 and buying costs you around £455 per month accounting for the interest that you would have earned. There's very little difference so just rent until you can earn more money and support a mortgage.

pmlindyloo

Although the OP may get tax credits at the moment when her child turns 18 yrs then they are likely to end.

OP, you need to get start working more hours and earn more!

Your daughter will be an adult when you have to sell the house so there is no reason why you shouldn't be able to up your income - best to start now so that you have a good employment record for applying for a mortgage.

You need to speak to a mortgage advisor (or do some research on line) to see what mortgage you would want and how much you would have to earn and what the repayments would be.

Good idea to ask the question now so that you can start planning.

Why isn't your ex paying child support?

ecsb

I do get tax credits,but have been told by my current mortgage company they will not take that into account, esp as will end in 3 years.
Ideally i would need a minimum of £110000, to buy another property.
I only work 22 hours a week atm as that is all that is available in the role i do.

Guest101

ecsb wrote: »

I do get tax credits,but have been told by my current mortgage company they will not take that into account, esp as will end in 3 years.
Ideally i would need a minimum of £110000, to buy another property.
I only work 22 hours a week atm as that is all that is available in the role i do.

You need to borrow 60-65k, thereby you need an income of atleast £13k, but more likely £16-18k, with good credit history to boot.


Time to job search.

ecsb

As you earn £10,000 you can afford monthly rent of £330 plus the £125 in interest and you can rent something worth about £455 a month.



So....renting costs you around £455 and buying costs you around £455 per month accounting for the interest that you would have earned. There's very little difference so just rent until you can earn more money and support a mortgage.


Renting would cost me at least £650 per month, and that is for a basic home.

Guest101

ecsb wrote: »

As you earn £10,000 you can afford monthly rent of £330 plus the £125 in interest and you can rent something worth about £455 a month.



So....renting costs you around £455 and buying costs you around £455 per month accounting for the interest that you would have earned. There's very little difference so just rent until you can earn more money and support a mortgage.


Renting would cost me at least £650 per month, and that is for a basic home.

So you're home could be rented out for £650 / month? But its only worth £110k?

pmlindyloo

Guest101 wrote: »

You need to borrow 60-65k, thereby you need an income of atleast £13k, but more likely £16-18k, with good credit history to boot.


Time to job search.

Agree with the last sentence but don't agree with the first!

Mortgages are much harder to get these days as they take account of monthly expenditure/credit card repayments.

The OP's age means this might also go against her.

Only saying after doing a quick calculation on Santander. Perhaps her own mortgage company would be more flexible.