First time buyer - one with lower income

Littleladie

Hi all.
My husband and I want to buy our own place. We live with my parents at present so we can save and have around 10k deposit so far (still saving).

He earns more than I do, my income is low as I work for my families business I earn around 800 a month and he about 1300.

Here (South west) houses seem to be around the 200k mark on average, and every site I have gone on to calculate what we could afford, seems to not lend us enough to get a mortgage.

We don't really have a lot of outgoings, we have one car, no children, and the only bills coming out are our phones, pet cover, and little bits like that so far.

Has anyone succeeded in buying when one person is on a lower budget/you as a pair are classed as low income?

I'm so stressed with it all!

Oakdene

Go see a broker who will have experience in dealing with customers who have low incomes.

kingstreet

You will typically be able to borrow about 4.5 x your joint gross annual salaries.

Littleladie

Seeing a broker is next on our list! It just makes me so nervous to get rejected.

Candyapple

Littleladie wrote: »

Hi all.
My husband and I want to buy our own place. We live with my parents at present so we can save and have around 10k deposit so far (still saving).

He earns more than I do, my income is low as I work for my families business I earn around 800 a month and he about 1300.

Here (South west) houses seem to be around the 200k mark on average, and every site I have gone on to calculate what we could afford, seems to not lend us enough to get a mortgage.

We don't really have a lot of outgoings, we have one car, no children, and the only bills coming out are our phones, pet cover, and little bits like that so far.

Has anyone succeeded in buying when one person is on a lower budget/you as a pair are classed as low income?

I'm so stressed with it all!

So between you both your annual salaries are roughly £28k. £28k x 4.5 (guideline) = £126k.

So if a mortgage lender would be willing to lend you their top valuation of £126k and properties in your area go for £200k, you have a shortfall of £74k.

Even if you saved a 10% deposit of £20k (based on £200k price) you would still be left with a deficit of £54k. And that's not even adding on the costs of stamp duty, legal costs etc. Can your/his parents help with this?

You may have to lower your expectations and search for a flat instead of a house (if you aren't already) or reduce the number of bedrooms until you can find a property that fits your budget.

Littleladie

Exactly, it's awful

We have looked at flats, but we have a dog, so we have to make sure we have somewhere to take her. It's all just so stressful. We are content with a smaller place, it's just so rare to find one within a price we can afford.

Ah, I think we need to continue to save save save and keep our eyes peeled

BattleToads

Make sure both of you are taking advantage of the Help to Buy ISA if you are not already.

Oakdene

Is it possible for you to leave the family business to enable you to get a better paid job?

LandCmortgages

Hello, we have this calculator to help you work out how much mortgage you might be able to borrow based on your income: https://goo.gl/kpvmi5

pjcox2005

The problem with your wages is that a mortgage of £180k at 3% would be c.£850 a month. So that would consume your wage and when you add on council tax, electricity, water, transport and food, then I'd expect it to be a real struggle to have much disposable income.

I think the aim needs to be on how your wages could improve - more hours, different job, upskilling

tori.k

Sadly you need to lower your expectations or up your income for the south west, from Bristol to Penzance there are plenty of houses in the 150k range