Would I be able to get a mortgage under these circumstances?

kissinger

Here's my situation. I live in a housing association flat that I want to buy under the Right to Buy scheme. Just wildly guessing, the flat is worth around £120,000, so I would need a mortgage for roughly £60,000. I've worked full-time for the past 3 years, earning between £26-28,000 and was working part-time before that. I have just got a new job where I'll be earning around £35,000 and I have around £4000 in savings. In addition, other things that might prevent me from getting a mortgage include:

*I have one default on a loan from about 4 years ago, although I did renegotiate the size of the repayments at that point and have met every repayment since.

*I have one other loan, which I have made every repayment on, for a total of around £17,000 of debt altogether.

*I have one short period of recent unemployment (from the start of this month until September 1).

*My current job is a fixed term contract (although it is a good job and I shouldn't have a problem in the future in terms of employment).

Other than that, I was wondering if my chances of getting a mortgage would increase if I was to make a joint application with my partner, given that she also works full-time?

Thanks in advance for any advice. It's much appreciated.

Ftba.d

AFF8879 wrote: »

How on earth were you entitled to council housing on your current income level?

The £17,000 of debt I think will be the killer. You really ought to chip that down to a more reasonable number before you think of applying for a mortgage. There are lenders who would look past the default, but I think you'll struggle with that level of gearing.

In terms of right to buy mortgages I'm not familiar with specific requirements so will let someone else answer that part. In particular I would be unsure about your partner being able to be on the mortgage if she hasn't been a council tenant before...

Good luck

I don't think it's any of our business as to how Kissinger became entitled to council housing. We are not privy to other factors or history that may have contributed to him / her securing such a property. I do sometimes worry that some posters on these forums feel entitled to unecessary private information in return for offering advice.

Unfortunately , like AFF said , I think the £17,000 debt will pose as a problem. Depending on the lender, the default could be looked over as long as you have a strong credit history since.

With regards to employment , they will want to see proof of your fixed term contract.

I think the best thing for you to do would be to contact a financial advisor and tell them everything. There are many out there who offer a free service and make their money back from the lenders once the mortgage is secured. A financial advisor would have seen many cases and know the requirements for different lenders so will be able to point you in the right direction .

Good luck !

csgohan4

Debt will be your biggest barrier, is it wise to own a house with that much debt, mortgage maybe cheaper than rent, but responsibility for your house is not cheap either, maintenance, insurance e.t.c

upoiupou

Ftba.d wrote: »

I don't think it's any of our business as to how Kissinger became entitled to council housing.

It was presented as housing association housing. If it was council housing it would be very much our business, since it's public money. With a housing association, I suppose it's up to them and their stakeholders what happens. Beats me, though.

kissinger

My flat isn't a council flat. It's a HA one. But yes I was on a low income when I applied to the HA.

The thing about the debt is it isn't a massive burden to me because the rate of interest is very low (around 3%) but I know it looks bad on paper.

I was pinning my hopes on the fact that I would be asking for a £60,000 mortgage with a £120,000 asset (ie. the flat). Also my mortgage payments would be around half of what my current rent is (according to my calculations at least).

wullie

I totally agree . What on earth is it anyone's business what a person earns and their housing situation? I too earn £35,000 and bought my council house. Because of my age it was touch and go , but the broker said because i was debt free that nailed it. £17,000 is a hell of a lot i'm afraid. Like you say, it just looks bad even if the mortgage is affordable.

System

Good on you mate. You have doubled your wealth via the tax payer. Make sure you sell it for a massive profit in the future.

wullie

mrlegend123 wrote: »

Good on you mate. You have doubled your wealth via the tax payer. Make sure you sell it for a massive profit in the future.

I don't look at it that way . It's my home . Always has been . Circumstances meant it was cheaper to buy than rent ( pay to stay ) Blame the government.

wullie

any way the thread is not about me . Good luck Kissinger. I had a excellent local mortgage adviser. I suggest you find one.

System

I do blame the Government. It's a evil scheme and should be removed. He should not be entitled to the property because of his income. He should not have a right to buy the property. Britain is broken, beyond repair!

wullie

mrlegend123 wrote: »

I do blame the Government. It's a evil scheme and should be removed. He should not be entitled to the property because of his income. He should not have a right to buy the property. Britain is broken, beyond repair!

Who cares what you think ? Remember i pay taxes too. I don't agree with millionaire pensioners getting free bus travel and heating allowances . So what ? I hope you get to buy your home Kissinger. Let the haters hate....