1st time buyer....confused

susi

Hi
My daughter is looking for a mortgage for her first property, she is on her own so would need a mortgage based purely on her salary. She went in to this around 2 years ago when she first started work at our local hospital, she was told by her bank that she should be with the same employer for 2 years before they would consider her application, as she had only just started her new job she put her idea on hold (the property she was looking at then was £38,000 the same property now she has waited is £110,00)
Now all she can afford is something that is really run down and needs attention. She wants to get as high a mortgage as possible and has now been told she can only borrow 3 times her salary, we are so confused and dont want to let it go again and risk not being able to get on the property ladder at all. I know a lot will say property is falling and she should wait, but in our area it isnt, in fact it is about to rise again because we have just opened a new airport close by. any advice ( in laymans terns please!!!) would be greatly appriciated, she is feeling really disheartened
Thanks in advance

dougk_2

It is possible to borrow more than 3x the salary. Whether its is a good idea or not is down to personal cirmcumstances. Get her to speak to an Independant Mortgage Advisor.

herbiesjp

Agree with dougk.

You can get higher multiples on mortgages, but it does depend on the whole scenario i.e deposit, income etc.

Also, whilst you may be able to get the mortgage, you need to make sure that it is affordable not only now, but also in the future

susi

I forgot to say, although she is going through the purchase on her own she will be renting two of the rooms out to work collegues, does it make a difference to her lending amount?

zag2me

If she works in a hospital she may be eligible for the key worker scheme, otherwise look at shared ownership as a first time buyer.

meanmachine_2

Well firstly never just pop into your local bank.

That's the last place you should look for a mortgage.

Go to a mortgage broker.

And no property has risen from £38K to £110 in three years, surely?!!!

Even if this is the case, do you think this is normal, sensible and sustainable?

No of course not. Prices aren't going anywhere for the next few years. Even the most bullush of economists are predicting stagnation for the next 5-10 years.

If your daughter is renting two rooms out, that means her finances have to stretch to a three bed place. Why not just get a one bedder?

Could you tell us your daughter's salary, profession and any debts she might have?

If banks are only prepared to offer her three times her salary, sounds like she'd a bad risk. These days lenders have become so lax (and desperate) that four times is seen as a benchmark.