Can I get a mortgage under these circumstances? Help

Sponge_Cake

Hi,

Need a bit of advice, my partner and I are looking into getting a mortgage and buying a house. The house prices around here are cheap - between £70k and £100k for something reasonable.
We have £14,000 saved up between us. We will get some help from both our parents - could be between £5k and £10k additional.

We are both on fairly low incomes - both SEN support assistants in schools - him in secondary, me in primary.
Between us we earn just over £20,000.
Mine is a temporary contract for another four years (until the pupils I am supporting finish school in year six). I'm not sure if this will cause any issue either? It is a permanent contract for those years otherwise.
His doesn't have that clause - just permanently employed by the school.

Our outgoings are small - neither of us smoke , we very rarely socialise and don't tend to go on many holidays. We have no children yet but that will change in the near future probably.

If anyone can help, that would be great.

National_Debtline

Hi sponge_cake,


You will likely need to try an independent mortgage broker - just be careful of their fees. From what you have said you could have between 19% - 34% deposit depending on what you end up buying, which is good. However, sometimes, having 34% is no different to having 30% (you need to get up to the next bracket i.e. 35% to get the benefit of cheaper interest rates/ better deals). This is the kind of thing a broker can discuss in more detail.

The other issue could be your temporary contract combined with your annual earnings. This may restrict your overall affordability as well, and needs to be checked out before you really go on viewings.


Most mortgage lenders ask about your day to day spending but they will also ask about any debts you may have, like credit cards, loans, car finance etc. These monthly payments will be deducted from your monthly affordability which is another factor. Best of luck,


Laura
@natdebtline

ACG

Check the employment for yourself with the lender (or get your broker to do that if you use one) but I see no reason why you can not get a Mortgage based on what you have said.

kingstreet

Sponge_Cake wrote: »

We have no children yet but that will change in the near future probably

You should consider very carefully how you will afford a mortgage and childcare as your incomes are very low compared to most.

Sponge_Cake

Just because we have low incomes, doesn't mean we can't have children, surely? I know it'll be tough, especially paying a mortgage but it'll be worth it. Also we won't need very much child care as his parents live in the area and are both retired and I'm almost certain they'll step in most days to look after any children we may have in the future.

Sponge_Cake

Thanks very much. We don't have any loans, credit cards (that we owe money to) or finance, so we should be okay there.

amateur_house

Sponge_Cake wrote: »

Just because we have low incomes, doesn't mean we can't have children, surely? I know it'll be tough, especially paying a mortgage but it'll be worth it. Also we won't need very much child care as his parents live in the area and are both retired and I'm almost certain they'll step in most days to look after any children we may have in the future.

I don't want this to sound negative, but have you discussed childcare with your partner's parents? You say they are retired so from that I am guessing they are in their mid-late 60s now, and could be 70 plus by the time you have children. They may find it too tiring to look after babies/young children most days at that age. I think you can get help with child care costs though, people I work with seem to get some sort of help.