Buying a house without the income

bertiewhite

Kayalana99 wrote: »

All these comments saying I can't afford it, but really it's actually cheaper and I do have to have a roof over my head...

So if you think you can afford it, apply for a mortgage and see what the answer is?

chappers

Kayalana99 wrote: »

I can afford to pay £575 in rent, and a mortgage would cost somewhere between £350-400...it makes a lot more sense to buy.

All these comments saying I can't afford it, but really it's actually cheaper.

But what if interest rates went to 2,3 or even 4%.
That's the reason why lenders build in what you consider to be unreasonable affordability criteria.

I took out my first BTL mortgage at a time when the rent was 25% short of covering the mortgage, put half my deposit together from another loan and at the time was elf employed in the building game.
I was part of the whole sub-prime lending scenario and nearly ended up being one of the statistics, the whole market effected my work in the construction industry and I only just managed to scrape through intact. Some I know weren't quite so lucky and if I hadn't gone down the route of developing the property I owned I'm not sure I could have carried on like that either.
These are the sorts of reasons why lending criteria have been tightened up.
The fire that was the 2008 worldwide recession was fueled by irresponsible lending.

parkrunner

bertiewhite wrote: »

So if you think you can afford it, apply for a mortgage and see what the answer is?

Stop with the sensible and obvious ideas!!

00ec25

Kayalana99 wrote: »

I can afford to pay £575 in rent, and a mortgage would cost somewhere between £350-400...it makes a lot more sense to buy.

All these comments saying I can't afford it, but really it's actually cheaper and I do have to have a roof over my head...

just because the maths say it is cheaper does not mean you can borrow 100k


if you can "afford" to pay £575 per month in rent then most sensible people would expect that to be no more than 50% of your net take home pay

a net take home pay of £1,180 per month means you earn around £16,000 pre tax per year.
https://www.tax.service.gov.uk/estimate-paye-take-home-pay/your-pay

earnings of 16k will not get a 100k loan (you'd get somewhere around 75k)
if we relax the rental rule and say £575 is only 40% of your take home, and thus increase your gross to £20,000pa that would enable you to get a 90-95k loan, and you have a 15k deposit so could possibly buy the 110k property all on your own but not the 115k property (allowing 2.5K of your 17.5K savings for "costs")
https://uk.virginmoney.com/mortgages/tools/mortgage-calculator/input/dda84f6e-fc99-4e1a-b242-1b57c92e6366

so the fact you say you need help from your father suggests you do't even earn full time minimum wages, in which case no you cannot borrow what you want on your own even if you think you can afford to pay such a large % of your income in rent.
16k pa is effectively national minimum wage to a 40 hour/week worker
20k is a low paid worker
27k is UK average salary

bertiewhite

Kayalana99 wrote: »

I can afford to pay £575 in rent, and a mortgage would cost somewhere between £350-400...it makes a lot more sense to buy.

All these comments saying I can't afford it, but really it's actually cheaper and I do have to have a roof over my head...

But as a home owner you'll have potential costs that a tenant doesn't.

I'm not against home ownership, just that it's not as simple as if I can afford rent, I can afford a mortgage.

Kayalana99

00ec25 wrote: »

just because the maths say it is cheaper does not mean you can borrow 100k


if you can "afford" to pay £575 per month in rent then most sensible people would expect that to be no more than 50% of your net take home pay

a net take home pay of £1,180 per month means you earn around £16,000 pre tax per year.
https://www.tax.service.gov.uk/estimate-paye-take-home-pay/your-pay

earnings of 16k will not get a 100k loan (you'd get somewhere around 75k)
if we relax the rental rule and say £575 is only 40% of your take home, and thus increase your gross to £20,000pa that would enable you to get a 90-95k loan, and you have a 15k deposit so could possibly buy the 110k property all on your own but not the 115k property (allowing 2.5K of your 17.5K savings for "costs")
https://uk.virginmoney.com/mortgages/tools/mortgage-calculator/input/dda84f6e-fc99-4e1a-b242-1b57c92e6366

so the fact you say you need help from your father suggests you do't even earn full time minimum wages, in which case no you cannot borrow what you want on your own even if you think you can afford to pay such a large % of your income in rent.
16k pa is effectively national minimum wage to a 40 hour/week worker
20k is a low paid worker

20k+ would be around about what I would be on to be fair, but I could have done without having to wait 3 months for the pay checks to show it + they may be funny about taking overtime even if it's always available. It is what it is I guess.

saajan_12

Kayalana99 wrote: »

I can afford to pay £575 in rent, and a mortgage would cost somewhere between £350-400...it makes a lot more sense to buy.

All these comments saying I can't afford it, but really it's actually cheaper and I do have to have a roof over my head...

It doesn't work like that, you can't afford it.

1. You're not even comparing like for like. Renting is a somewhat 'all in' figure. As a homeowner, in addition to your mortgage you'd pay
- ground rent / service charges
- buildings insurance
- maintenance / decoration e.g. repaint £1,000
- repairs e.g. new boiler £5000, roof leak £20,000
- lose out on interest / return on your deposit money

2. Once you consider all the costs, there’s the commitment of a mortgage. A lender expects to be paid every month for 20-40 years, no misses. If you lose your job as a renter, you can ultimately get support from the council / benefits. These will not help pay your mortgage (definitely not capital repayments).


So those 'comments' are actually helping you, I suggest you listen to them.

mrginge

glasgowdan wrote: »

I want a 40ft yacht but I don't have enough money. Is there a way I can have it?

OPs dad might chip in.

Car1980

Don’t despair, most single people can’t afford a mortgage. It’s much easier with a partner and twice the income

00ec25

Kayalana99 wrote: »

20k+ would be around about what I would be on to be fair, but I could have done without having to wait 3 months for the pay checks to show it + they may be funny about taking overtime even if it's always available. It is what it is I guess.

so another drop of drip fed info, you are "about" on 20k but you don't want to wait 3 months

come back in 3 months when you know what you are doing. I'm out. You can find out your true position very easily yourself by making a bit of effort with a mortgage broker if you are so impatient that you can't wait 3 months