mortgage on a low wage possible?

bigbluehouse

Hello. I work usually 30-35hrs a week, but I am contracted only 16hrs a week. Not much over minimun wage - I can check the rate tomorrow... Could I get any kind of mortgage? And if so how much...

I do save quite a lot.

Thrugelmir

Mortgages are possible on a low wage. Question is how much do you need to borrow in order to get on the property ladder.

bigbluehouse

Thanks. This all new to me. I thought I could get maybe a deposit of about 40k together. But I'm not sure how much I should allow for legal and surveyor fees or if it is advised to totally empty your coffers into such things.

chunkytfg

But where to do you actually live? are you up north where 40k will be a 50% deposit or are you down near london where 40k will barely pay for a postage stamp?

have a look on rightmove for the area you'd like to live in and decide how much you think you'd need to spend on a property?

csgohan4

not enough info


Total income, debt


generally can borrow x4.5 your income assuming no debt. Use the affordability calculators available online like Halifax, nationwide

ACG

Assuming you are on £8 an hour, your guaranteed wage is £6,600 a year.
That is not enough to get a mortgage and is probably just enough to live on.

There are lenders who may take your full income in to account if you can evidence it for say 12 months, That would give you £13-14k. You would probably be looking at a £30-40k mortgages assuming you have no debts, kids etc.

bigbluehouse

>There are lenders who may take your full income in to account if you can evidence it for say 12 months, That would give you £13-14k. You would probably be looking at a £30-40k mortgages assuming you have no debts, kids etc.

I have bank statements and wage slips.

>Total income, debt

No debt.

>But where to do you actually live? are you up north where 40k will be a 50% deposit or are you down near london where 40k will barely pay for a postage stamp?

>have a look on rightmove for the area you'd like to live in and decide how much you think you'd need to spend on a property?

Not sure yet. I was thinking maybe Scotland or IOW or Westcountry. Where you can get a one bed flat for less than 100k. Am open to suggestions and could get a job transfer quite likely.

My outgoings are quite low. In the past year, I've saved £8k.

HampshireH

Not sure yet. I was thinking maybe Scotland or IOW or Westcountry. Where you can get a one bed flat for less than 100k. Am open to suggestions and could get a job transfer quite likely.

There is quite a difference between those three locations. Also depending on who your employer is you would need to ensure that they have a premises in the local area, then take into consideration travel costs.

Put a search into rightmove for under £100k as suggested above.

Example a quick search for Yeovil brings up 13 flats under £100k.

But with that you will have to be able to afford your mortgage repayments along with your bills and any ground rent /service charges.

When you buy you need to consider how you will pay for repairs/new boiler etc and with a higher amount going out how you will save for those things.

You need to bear in mind that whilst your outgoings are low now home ownership is expensive and lenders are all about affordability.

May be worth picking a property (any you like the look of) and then researching the cost of bills on average for that flat. This should give you some idea of monthly expenditure.

ACG

bigbluehouse wrote: »

Not sure yet. I was thinking maybe Scotland or IOW or Westcountry. Where you can get a one bed flat for less than 100k. Am open to suggestions and could get a job transfer quite likely.

The problem with that is they are all very far apart, some need a boat/plane to get there.

You will either need to declare very high commute costs or change job. If you change job, then you would be applying with a different job so that would affect your options. I suppose if you work for Tesco (other supermarkets are available) or something and can move store, that would be feasible.

bigbluehouse

>There is quite a difference between those three locations. Also depending on who your employer is you would need to ensure that they have a premises in the local area, then take into consideration travel costs.

Oh sure. That's not a problem, i think. I work for a chain with hundreds of branches.

>But with that you will have to be able to afford your mortgage repayments along with your bills and any ground rent /service charges.

I have started to look at places and have been considering the ground rent/service charge issue.

>When you buy you need to consider how you will pay for repairs/new boiler etc and with a higher amount going out how you will save for those things.

That is why I am not sure how well it is advised to plough all savings or to hold back a bit...

>You need to bear in mind that whilst your outgoings are low now home ownership is expensive and lenders are all about affordability.

>May be worth picking a property (any you like the look of) and then researching the cost of bills on average for that flat. This should give you some idea of monthly expenditure.

If you search on Zoopla it does do that for you and it did seem to suggest generally my outgoings would be a little lower if I was owning a place.

HampshireH

Sounds like you have thought of most things.

If you search on Zoopla it does do that for you and it did seem to suggest generally my outgoings would be a little lower if I was owning a place.

Zoopla usually covers a very low insurance premium, gas, electricity and mortgage.

You will need to factor in either all or some of the following;) which Zoopla sometimes ignore

* Income protection insurance (for the mortgage)
* Broadband/phone/Tv (all optional)
* Water
* Service charge
* TV licence (optional)

Do you rent currently?

I personally wouldn't plough everything in. I've been there. Thankfully i also save quickly. But it's scary having nothing. We were really worried we would be left without a boiler working or something drastic. So definately keep a small amount back as an emergency fund.

Based on the figures you have given for salary I genuinely admire anyone who can afford to buy & maintain a property on it.:T

But I live in an expensive area so cheaper properties are but a dream here