1st Mortgage Fears

2iggy

I'm having to move out of my home area to find something in budget as it is... Its about 30 miles outside of Oxford that I am looking and this is kind of average price... I mean we have more deposit we can put down but were hoping to save it to get me through my degree in case we really needed it, Sort of a pot of rainy day money.


Average prices for houses around where we can afford is sort of £210-220. We said the most we would want to use of our pot is £50k so then looking for £160-170k mortgage.. I suppose if we could use £70k of the money then we would be on the £140k you suggested and then the payments would be lower.. We are looking to spread over 30 years

2iggy

Also, if I fix for 2 years I will be a year off of coming out of my degree and then my salary will increase to approx. £30k so should be better off on it then...

lauren_hb

Sorry to jump in, but I'm also wondering do mortgage lenders take in to account an increase in wage within say a two year fixed period? I'm currently on just under 16k a year but come October 2017 this will increase to 27k. Without going into details my affordability would be judged as poor due to the upper rates of interest lenders consider but manageable on the fixed term however after this my wage would have increased anyway.

elverson

2iggy wrote: »

Also, if I fix for 2 years I will be a year off of coming out of my degree and then my salary will increase to approx. £30k so should be better off on it then...

Is that £30k guaranteed or what you hope will happen?

Thrugelmir

lauren_hb wrote: »

Sorry to jump in, but I'm also wondering do mortgage lenders take in to account an increase in wage within say a two year fixed period? I'm currently on just under 16k a year but come October 2017 this will increase to 27k. Without going into details my affordability would be judged as poor due to the upper rates of interest lenders consider but manageable on the fixed term however after this my wage would have increased anyway.

No. Lenders look at today. Tomorrow is subjective and totally uncertain. Lending would be irresponsible if done in this way.

lauren_hb

Thrugelmir wrote: »

No. Lenders look at today. Tomorrow is subjective and totally uncertain. Lending would be irresponsible if done in this way.

Even if that wage increase is guaranteed? My company are currently putting me through university to become a mental health nurse, upon completion I'll continue to be employed by them but as a qualified nurse not as a nursing assistant which is my current role.

MaebyJade

lauren_hb wrote: »

Even if that wage increase is guaranteed? My company are currently putting me through university to become a mental health nurse, upon completion I'll continue to be employed by them but as a qualified nurse not as a nursing assistant which is my current role.

I doubt it. Mu workplace are paying for an accounting qualification, which I only require sign off on which will actually happen in April (before the mortgage actually starts). Once I qualify my salary increases by approx £10k yet when making our application in january neither the broker nor the lender took this into account. They were only concerned about what I was currently earning and what my last 3 payslips showed. To be honest it's the only way of doing it, they can't lend money on the assumption your salary will increase no matter how much of a guarantee you or anyone else gives them.

elverson

From the bank's point of view, you might fail the course or the company may have gone into administration by then.

2iggy

Yes guaranteed. 30k is the minimum it will depend on whether I chose to complete extras there afterwards.

jhyt89

I don't think anything is guaranteed. banks will not consider future earnings.