Loan to pay a mortgage

richard_3095

Hi. I'm currently on an income of £6,500. I am thinking of buying a house valued at about £70K, but which I can get for about £20K. My credit rating with Experian last time I looked was 999. In about a year from now I expect to be self employed. I'm 60 years old.

As I understand it, I'll not be able at present to get a mortgage. So, I looks like I'd need to get a loan to pay for the house in full.

Has anyone any idea of what to go for if I try to obtain a loan for say £23K, or what obstacles I may face. Or anyone any recommendations. Any tips?

I could probably cobble together some guarantors for a loan. But, wonder if I need to. Thanks.

P.S. Title should probably say "Loan to pay for a house".

[Deleted User]

You won't get a loan that high on your income. It's too high risk, regardless of what the made up credit score says.

How much are you able to save each month currently?

richard_3095

I'll be able to save about £100 pm.

[Deleted User]

That means you'd need a term of 30 years or more to pay it back.

There's no chance of that happening.

Herzlos

Have you spoken to your bank about a mortgage?

I'm assuming this is a right-to-buy deal on a house you currently rent, in which case you'd be switching your rent payments to mortgage payments?

I doubt you'd be able to get a loan for 4x your salary.

I think I'd be trying to make some appointments with mortgage brokers to see if there's anything you can do.

dresdendave

richard_3095 wrote: »

I could probably cobble together some guarantors for a loan. But, wonder if I need to. Thanks.

Whatever else you try, please don't resort to this.

System

Forget it, you cannot afford it with a £6500 a year income even if you could find someone to give you a loan. You can afford it even less if you plan on being self employed as you need to build up a bank account balance to cover your living expenses for the first 3-6 months until the self employment starts to generate enough income to draw a wage.

[Deleted User]

If its a right to buy and you are paying rent on a 6.5k income surely you are getting some benefit help with this?
Sorry to say at your age on your income you won't get a loan, ignore the totally fictitious credit "score" it means nothing.

jonny2spoons

I know someone who was able to put their entire mortgage onto credit cards because they had an excellent credit score. This may sound crazy, but actually they benefited from 12 months interest free, and in that time they paid off a large portion of the debt and were able to get a small loan to clear the credit cards before the high rates kicked in.
I'm not suggesting this as a long term strategy and you'd need a VERY solid exit strategy if you were considering it. Either way, you'll need a guarantor, or you could split the asset with someone with a higher income and own half each, that way you still get the property and can make a decent return.

iolanthe07

I think the OP must have made a typo. Perhaps he means £16,500, as no one could live on £6,500 a year (£125 a week) these days without top ups and benefits.

Caz3121

iolanthe07 wrote: »

I think the OP must have made a typo. Perhaps he means £16,500, as no one could live on £6,500 a year (£125 a week) these days without top ups and benefits.

I don't think it is a typo, OP posted previously that they were on £7k and another post they were on £6k. There was mention of bedroom tax so assume that they receive housing benefit.

Not sure what the benefits would be in buying apart from having an asset that may be able to be sold to fund any future care requirements but on a low income I would expect it more beneficial to have maintenance and repairs paid by someone else