60K deposit, 15K annual salary... Affordable Value of house

AdrianC

Maximum100 wrote: »

One option is, a family member has just a little mortgage left on their property ( very little). They can go on the mortgage with me , however I'm not too confident about their credit rating. Even though I will be able to solely manage mortgage repayments myself , if they happen to get into financial difficulties again, that will wreck my credit score for future reference.

If their financial situation is so perilous, will they actually improve your borrowability anyway?

And you do realise they won't just "go on the mortgage", but will be a joint owner. Their creditors are going to see part of your property as their asset to chase.

Maximum100

Spidereyes thank you ever so much for those calculations , they give me a better understanding of where I stand and where I need to be to realistically purchase a property..Thanks again

Trying to use the quote facility, but don't know if it's going to work

Maximum100

Thank YOU Adrian ( forgot full username) . That family member has been upto date with mortgage payments, no missed or late. Just not been good with overdrafts , that's why I said " I'm not too confident about their credit score"- worth a check!

kingstreet

spidereyes wrote: »

From a really quick plugin in figures from each sites own calculators based on your salary and deposit on a term of 30 years;

NatWest 77k
Nationwide 70k
Leeds 85k
Halifax 68k
TSB 59k
Barclays 52k

So you can see there really is no set amount but there's a swing of £33k difference between the least and the most likely to be able to be borrowed.

Even still, even taking into account Leeds as the highest borrowing, with your deposit, you would still only be looking at a purchase price of £140k taking into account fees which is obviously significantly less than what you looking at.

From Leeds calculator;-

Lending Criteria Update: The Society recently changed its UK Lending Policy for primary and additional lending. We are in the process of updating our affordability calculator to reflect this change but in the meantime, please note the following.

The maximum borrowing will be capped at up to 4.5 times the total gross allowable income, even if the affordability calculator gives a higher result.

The Society no longer accepts child tax credit and child benefit as acceptable income types

teddysmum

Maximum100 wrote: »

One option is, a family member has just a little mortgage left on their property ( very little). They can go on the mortgage with me , however I'm not too confident about their credit rating. Even though I will be able to solely manage mortgage repayments myself , if they happen to get into financial difficulties again, that will wreck my credit score for future reference.

If they were on your mortgage , they would be seen as buying a second property, so the house would have a 3% stamp duty to pay, due to recent legislation.

ReadingTim

Dunno your current living arrangements, but you've got to consider the cost of running a property in addition to buying it: some of the more basic calculators claim they'll lend you up to an amount, the repayments for which, when added to your bills would exceed your monthly income.

I don't want to rain on your parade because saving a £60k deposit is a massive achievement, especially if it was done on your modest salary. However, home ownership is increasingly becoming the preserve of the well-off, which you are not. I would therefore concentrate on increasing your income rather than buying a house because I think that for as long as your earn what you currently earn, home ownership will always be just out of reach, or extremely precarious.

kingstreet

teddysmum wrote: »

If they were on your mortgage , they would be seen as buying a second property, so the house would have a 3% stamp duty to pay, due to recent legislation.

Joint borrower, sole proprietor would avoid that.

What used to be known as a guarantor mortgage.

sparky130a

Maximum100 wrote: »

With the house price £180-£185 is the absolute minimum. It really is the job that's letting me down- feel so unqualified right now and it's part time too

Then frankly you need to secure a full time job paying much better.

That's all there is to it it i'm afraid. Having said that i live in the SE and only have a £100,000 1 bed crash pad and love it. What you want and get are two different things.

The GF owns o £400,000 place in Berkshire but we split the time and she has no problem being here.

Despite your deposit on £15K pa i really think you need to redefine your expectations.

GDB2222

I have a suggestion, but please don't shoot me down in flames! Become a landlord, using the £60k as a down payment. This works provided the rent covers the mortgage payments. It doesn't put a roof over your head, but it does protect you against being left behind if property prices rise further. (It also exposes you if they crash or interest rates rise, of course.)

The rental property doesn't have to be local, but that would be best. It means you can deal with any repairs, and you can move in yourself once day, if your finances improve.

Looking after elderly rellies - does that mean you may inherit a property in the future?

marliepanda

GDB2222 wrote: »

I have a suggestion, but please don't shoot me down in flames! Become a landlord, using the £60k as a down payment. This works provided the rent covers the mortgage payments. It doesn't put a roof over your head, but it does protect you against being left behind if property prices rise further. (It also exposes you if they crash or interest rates rise, of course.)

The rental property doesn't have to be local, but that would be best. It means you can deal with any repairs, and you can move in yourself once day, if your finances improve.

Looking after elderly rellies - does that mean you may inherit a property in the future?

Aside from the fact most lenders require BTL landlords to already own property, this is a terrible idea.