Buying my first home ( confused )

-DeeDee-

Hi I was wondering could somebody help me out here.

I recently went to a bank to see on how much I could borrow for a mortgage and i was offered up to 60k which is slightly lower than I expected. My mum is going to give me 20k as a deposit ( gift ) but I am still falling short due to 3 bedroom houses being over 85k upwards.

My mate who has around 3 houses told me I should give up my council flat and go back to my mum's for 3 months so my outgoings for gas/electric/rent are minimal and that it shows I have £600+ free each month to appear attractive to the lender. My outgoings would be 70% less. Would the bank borrow me more then 60k if I decided to do this?

My wage is £8 an hour and my credit rating on Noddle is 4 out of 5.

Any help much appreciated.

juniordoc

Reducing your outgoings by moving back in with your mum might help you save more for a deposit but it doesn't really make the outgoings associated with a property you would purchase any more affordable to you.
How old are you, could you take out a 30 year term rather than a 25 year term to help with affordability?
Do you need a 3 bed property? Would you be happy to get a 2 bed if it meant you could buy sooner?
Do you have full time work on a permanent contract?

Richard_Pia

Every lender has their own affordability calculation. Where one lender might only lend you £60k, another might lend you £65k, or possibly more. Have you approached any other lenders to see if they can offer you a higher amount?

-DeeDee-

juniordoc wrote: »

Reducing your outgoings by moving back in with your mum might help you save more for a deposit but it doesn't really make the outgoings associated with a property you would purchase any more affordable to you.
How old are you, could you take out a 30 year term rather than a 25 year term to help with affordability?
Do you need a 3 bed property? Would you be happy to get a 2 bed if it meant you could buy sooner?
Do you have full time work on a permanent contract?

It's not really the affordability it's the bank lending me less money for the mortgage. I could afford a 450 per month mortgage excluding any other bills because I am good with my money. I need a 3 bed property due to having 2 kids already which I have 2 days a week overnight. I am 33 years old and work full-time and permanent contract and been with the company 4 years.

-DeeDee-

Richard_Pia wrote: »

Every lender has their own affordability calculation. Where one lender might only lend you £60k, another might lend you £65k, or possibly more. Have you approached any other lenders to see if they can offer you a higher amount?

I tried another bank which offered me even less so I am at crossroads at the moment. The more money you put down as a deposit would the bank lend you more money?

Richard_Pia

I take it you haven't spoken with a mortgage adviser then? Brokers have access to a multitude of banks and building societies and will know from experience which ones are likely to offer you the highest amount. What's your gross annual salary? Do you have any debts (loans, credit cards etc.) or financial dependants?

Yes, some lenders might actually be prepared to lend more if you have a bigger deposit. How much more could you stretch to?

-DeeDee-

Richard_Pia wrote: »

I take it you haven't spoken with a mortgage adviser then? Brokers have access to a multitude of banks and building societies and will know from experience which ones are likely to offer you the highest amount. What's your gross annual salary? Do you have any debts (loans, credit cards etc.) or financial dependants?

Yes, some lenders might actually be prepared to lend more if you have a bigger deposit. How much more could you stretch to?

When you say broker do they take a cut out of it if they found you a good lender? I get around 15.6k per year with a monthly bonus around £70 amounting to £800ish a year on top. I have zero debts and quite a good credit 4 out 5 on noddle. I have 3 credit cards which I have used in the past for cash transfers and I play one with the other cause each one offers different rates which I use to my advantage, but I haven't used them in like 2 years and when I have I always pay them off in half the time without missing payments. Altogether with my mum giving me 20k I could put another 5k on top making it 25k in total.

ACG

Your current place would only be an issue if you plan on keeping it post completion of the new place.

If that is going, then all of the bills for the current place would be ignored.

I agree with Richard, going back to your mums would enable you to save more so you can get to the £85k but £5k in the grand scheme of things is quite small so chances are if some lenders will get you to £80k, there would be one that would enable you to get to £85k.

A broker will normally take commission from the lender (this costs you nothing directly or indirectly) and a fee (this would cost you directly).

Richard_Pia

You should certainly be able to borrow more than £65k in that case. I have run a check with one lender in particular, and they could potentially lend in the region of £73k, assuming you don't have any other significant expenditure.

Richard_Pia

£73k would be the loan amount, so with your £25k deposit you could potentially purchase a £98k property.

-DeeDee-

Richard_Pia wrote: »

£73k would be the loan amount, so with your £25k deposit you could potentially purchase a £98k property.

Sorry about the late reply been really busy with work. That would be amazing news if I could possibly get that when I see a mortgage adviser. I know being on the electoral role brings your credit rating up so with me moving back to my mums for a couple of months would I have to notify them of this change and would it effect total amount the bank will lend me?