Could I possibly get a mortgage any time soon?

Fred1200_2

Right, so...

I earn roughly £22k a year at the moment ( freelance so pretty hard to get an exact figure together)

I have about £100K available as a deposit ( currently tied up in my late mothers house which I own half of)

and I have about £10k in savings readily available to me.

I'm looking at buying a house worth around £250k.

All i want to know is if in your humble opinion does this sound achievable any time soon or do I need to wait until my earnings increase, lower my budget for buying etc...

Thank you...be nice

Debtslayer

You say you currently have 100k tied up in your late mothers house, is the plan for this to be sold?
Even with 100k deposit you don't earn enough to get a property for 250k as that would mean a mortgage of 7 x your salary, max is 4.5 times salary. So I would be looking at properties around 170k -180k

Fred1200_2

Yes the plan is for this to be sold, however I'm currently living in it which I'm sure raises complications.

So it seems my salary is the thing holding me back, so as it stands salary goes up budget goes up?

Fred1200_2

Or of if I was to get another £20k into the deposit that would raise it by that much?

Debtslayer

Fred1200 wrote: »

Or of if I was to get another £20k into the deposit that would raise it by that much?

Then you would have 130k deposit so for a property costing 250k you would still need a mortgage of 120k which is still too much at 5.5 times salary. With your salary absolute max will be 99k (4.5 times salary)

Also don't forget you will need money for surveys. Solicitors. Stamp duty etc. If current house is not sold you will havd to pay the extra stamp duty of 3% also

MortgageMamma

You need to speak to a mortgage broker really to work out your exact affordability. You may be able to borrow 99k as max but it doesn't mean you should. If you are going to live alone in this property, running a 250k house on 22k is going to be a struggle financially, in terms of bills, particularly if your income is irregular.

Fred1200_2

It would be to buy a family home so wouldn't be just me covering running costs.

As for the costs such as surveys, solicitors, stamp duty etc how much money do I need available to spend in total roughly on things like that?

Debtslayer

Fred1200 wrote: »

It would be to buy a family home so wouldn't be just me covering running costs.

But you only mention your salary in your first post?!
Will the mortgage be in your name only? If it is then lenders will only consider your salary and all the outgoings as yours to pay.

As for the costs such as surveys, solicitors, stamp duty etc how much money do I need available to spend in total roughly on things like that?

For a guess approx 5k, but depends on where you live and will be more if you don't sell current property as stamp duty will incur 3% charge due to it being a second home you own
Also I would budget to have savings of approx 5k to cover anything that needs doing to the house

MortgageMamma

So Fred, does your partner work? do you already have children? do you receive tax credits etc..all these thing and more are taken into account when you are calculating affordability 4.5 x salary is just a rule of thumb then you have to deduct other credit commitments, surplus childcare costs etc

Why don't you speak to a whole of market mortgage adviser so they can give you a more accurate borrowing figure?

Fred1200_2

So basically there are plenty of things to consider but it isn't a waste of time pursuing this and it's worth getting in touch with a mortgage advisor?

Amber_87

I am on your salary and was lent £98k. With your £100k additional deposit surely you can look at houses up to around £200k? Have you used a mortgage calculator?