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Mortgage Chances with 1 salary
Tea&Biscuits
Posts: 54 Forumite
Oh I hope someone can help!
My husband and I and 3 kids are trapped in a 2 bed terrace with very little equity and need to move asap.
Our circumstances:
We are aiming to have £25/30k deposit very shortly.
Husband earns £21,750
I am unable to work- full time carer.
Price of 3 bed semi in our location is approx £180,000.
Is it AT ALL possible to have a chance of a mortgage with that single salary, and the accompanying deposit?
I do hope someone, with more experience and knowledge might be able to advise.
My husband and I and 3 kids are trapped in a 2 bed terrace with very little equity and need to move asap.
Our circumstances:
We are aiming to have £25/30k deposit very shortly.
Husband earns £21,750
I am unable to work- full time carer.
Price of 3 bed semi in our location is approx £180,000.
Is it AT ALL possible to have a chance of a mortgage with that single salary, and the accompanying deposit?
I do hope someone, with more experience and knowledge might be able to advise.
0
Comments
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Why the lack of equity in your existing property?0
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We purchased in 2007..... since then the house prices have obviously crashed and since, have only risen to just about the same price we paid. It's heartbreaking really.0
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In short no.
General rule of thumb is that you can lend between 4 and 5 times your income. So at best you are looking at around £100-110k plus your £30k deposit.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you for your information, I appreciate it.
Life is very depressing isn't it. We shall just keep trying hard to save as much as we can.0 -
I think they will normally lend upto 4.5 times salary plus deposit on top. Doesnt sound like you will be able to borrow enough. Are there any cheaper areas you can move too?0
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We already live in one of the cheapest areas in the UK to buy a home.0
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Tea&Biscuits wrote: »We purchased in 2007..... since then the house prices have obviously crashed and since, have only risen to just about the same price we paid. It's heartbreaking really.
Is your mortgage interest only then? You need to be paying down the capital balance by whatever you can afford. Even if it's not a lot.
Prices are relative. The price of property above you will have fallen considerably more and the gap has therefore narrowed again.0 -
We are in a similar situation Bought in 2006 we have sold for only 4k more than we paid. Have you been on interest only?0
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Tea&Biscuits wrote: »We already live in one of the cheapest areas in the UK to buy a home.
Are you sure? Our 3 bed cost us £85,000 and I can think of many areas that would be a lot lot cheaper than £180,000 for a 3 bed. Where in the country are you?0 -
Child benefit? Tax credits?
Some lenders will take these into account in affordability for a mortgage.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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