FTB advice on joint application.

scotsman1985

Hi folks,Looking for a bit of advice and opinions here.Me and my girlfriend, both 22, are looking to buy a house in our local area. Houses are selling for around about the 90k mark, mainly offers over 80k anyway.We propose to put down £5k. (though this may change to 8)Combined we earn just under £28k per year, applicant one earns £16k, applicant 2 earns £11,800 (this is expected to rise within the next few months)We currently have 2 loans, applicant one has a 7k car loan and applicant 2 has a 1k loan. No bad credit, payments have never been missed.Do you think that we will be able to get a 40 year mortgage for the amount we need with this current situation? We've looked at figures online at moneysupermarket.com and we seen 5 year fixed rate mortgages that were calculating our monthly repayments at around the £400 mark, which is ideal. Judging by these figures, we could comfortably afford repayments and all of lifes other joys that coming with owning your own home. I'm just worried that we dont earn enough to be considered for the mortgage we want.A friend of mines who is a first time buyer put earns around 24k by herself but was rejected for the mortgage cos she had no down payment. Now she has it and shes just waiting to hear back. She expects her mortgage to come in at around £350 per month. Any advice or anything at all is greatly appreciated.

herbiesjp

How much is the £7k loan per month and how much is the £1k loan per month?

YOur incomes are fine and teh deposit helps, although if you could find a 10% deposit it will open up more doors for you in terms of rates and keeping mortgage costs low

scotsman1985

herbiesjp wrote: »

How much is the £7k loan per month and how much is the £1k loan per month?

YOur incomes are fine and teh deposit helps, although if you could find a 10% deposit it will open up more doors for you in terms of rates and keeping mortgage costs low

thanks for your response.the 7k loan per month is 144 quid and the 1k loan is 45 quid. the 1k loan is over a period of 2 years and the 7k loan is over a period of 5. both have only just started. I agree with the 10% deposit and we will scrimp and scrape to get it. If we could get a property valued at around 84k then we could save that 10%. I'm finding the information on this site very useful. I work in a financial environment for a company who deal with a lot of the abbey products so I know a bit of the terminology, but it really is bursting my brain a bit!

herbiesjp

To cover the loans any lender will need to deduct £2268 from your incomes before applying any income multiples (£144+£45*12)

SO that leaves you with £27,800-£2268 = £25532

So that still leaves you with plenty to maintain your loans and cover mortgage payments.

Your next step would be to get actual repayment figures for deals that you are actually eligible for, so that way you can see the real effect on your pocket each month

scotsman1985

herbiesjp wrote: »

To cover the loans any lender will need to deduct £2268 from your incomes before applying any income multiples (£144+£45*12)

SO that leaves you with £27,800-£2268 = £25532

So that still leaves you with plenty to maintain your loans and cover mortgage payments.

Your next step would be to get actual repayment figures for deals that you are actually eligible for, so that way you can see the real effect on your pocket each month

Thanks for your advice there.I would like to go and speak to someone who could give me actual figures but we dont have our deposit saved up, so I feel that I'd be wasting peoples time by going in with a bag of assumptions. You dont by any chance know mortgage brokers in Glasgow personally that you could recommend me do you? I like to go on peoples recommendations as I'm less likely to be ripped off by someone who is known to provide a good service.