Struggling to find a mortgage as a single person

MikeL93

So a bit of background info I am 27, living at home with my parents, currently earn £30,750 a year, have £34,000 in savings - £20K is in a general savings account and the remaining £14K is in a Help to Buy ISA. I have very few outgoings. I pay a £200 direct debit into my Help to Buy ISA, £200 direct debit to my parents as keep for the month, £26 for the gym and that's about it as far as direct debits go. After that my only other expenses really are petrol and then if I need any other essentials such as a haircut every month etc. I save money by taking my own lunch into work instead of going out and buying something and whilst I do treat myself occasionally I am sensible with my money. I do have a credit card but I owe nothing on it, as soon as the payment comes though on my online banking I pay it off straight away in full instead of waiting to get my credit card statement.

With all this in mind I have constantly found it extremely hard to find a mortgage. I have searched a few times over the last 12 months and I've either been told no one will offer me one or I can only borrow a maximum of £99,000 which is not enough. Why does it seem to be so hard for a single person to find a mortgage? I've worked full time since leaving college at 18, I've worked for the same company slowly working my way up and so I've got job security, I haven't been furloughed at all during this pandemic and I like to think I've got my finances in order.

My little sister and her boyfriend have recently bought their first house together despite the fact they had a smaller deposit than what I have. I am sort of looking at her moving out as a sign that I need to move out too but my parents have told me I can stay at home as long as I need to and there is no rush for me to move out but I feel as though people are judging me because I am still living at home.

Is there anything I can do to help my chances of getting a better mortgage? My parents have told me I just need to stay at home until I've saved up more money for a deposit. 

ACG

Have you spoken to a broker?
£99k seems low, I would expect something closer to £135k + your deposit. 

[Deleted User]

MikeL93 said:

I do have a credit card but I owe nothing on it, as soon as the payment comes though on my online banking I pay it off straight away in full instead of waiting to get my credit card statement.

It's a small point, but try to break that habit.  Wait for the statement and clear in full.  Show lenders that you actually use and can manage credit.  

You may as well maximise your chances by building a decent history, expecially if you have such a thin file and at least one of your direct debits is actually a standing order.

K_S

ACG said:

£99k seems low, I would expect something closer to £135k + your deposit. 

I'll second that. £99k seems awfully low. Where did you get this figure from @MikeL93 ?

Some of the aspects that may bring down max borrowing are if your credit history is poor (recent late/missed payments or defaults on file) or if your income of 30,750 includes a variable element such as commission/bonus, etc. If it's a basic income of 30,750 with a clean credit history and no debt, a single 27 year old *should* be able to borrow around 4.5 times income.

MFWannabe

I would ask a broker to look for you 
what is the price range of houses you are looking at? Therefore an idea of how much mortgage you’ll be needing and how much of a percentage deposit you have 
I would also say though don’t move out just because you feel judged or pressured to. If your parents are more than willing to let you stay and build up your deposit and you’re quite happy there then stay put. You’ll have more deposit and better mortgage rates available to you 

Mishelski

I'm very similar to you. 
35 year old single parent. I earn 36k a year and have 15k in savings. I pay my credit card balance off in full each month and have no other debt. I have a 3 year old satisfied CCJ too

I am using HTB 20% equity loan and applying to Nationwide for 140k loan 

I have gone through a broker, so it's definitely worth using one imo. 

MikeL93

MFWannabe said:

I would ask a broker to look for you 
what is the price range of houses you are looking at? Therefore an idea of how much mortgage you’ll be needing and how much of a percentage deposit you have 
I would also say though don’t move out just because you feel judged or pressured to. If your parents are more than willing to let you stay and build up your deposit and you’re quite happy there then stay put. You’ll have more deposit and better mortgage rates available to you 

The price range of houses I'm looking at is around £160K, I don't want anything much bigger than that because then it'll possibly mean a bigger house which means bigger running costs.

MikeL93

K_S said:

ACG said:

£99k seems low, I would expect something closer to £135k + your deposit. 

I'll second that. £99k seems awfully low. Where did you get this figure from @MikeL93 ?

Some of the aspects that may bring down max borrowing are if your credit history is poor (recent late/missed payments or defaults on file) or if your income of 30,750 includes a variable element such as commission/bonus, etc. If it's a basic income of 30,750 with a clean credit history and no debt, a single 27 year old *should* be able to borrow around 4.5 times income.

I can't remember off the top of my head where I got that figure from, it was a mortgage advise company that I had to have a telephone meeting with. My income is a basic income but then last month and this month I've had bonuses in my pay cheque. I imagine I have a clean credit history, I've never actually checked my credit score but I also forgot to mention I have for the past few years been paying £350 a month for my car which is now all paid off and for 6 months last year I was paying a £200 direct debit to my dentist every month for work I was having done, I never missed a payment on either of them. Part of me is thinking if I am facing an uphill struggle due to what is going on with Covid and lenders are less willing to lend money.

MFWannabe

MikeL93 said:

MFWannabe said:

I would ask a broker to look for you 
what is the price range of houses you are looking at? Therefore an idea of how much mortgage you’ll be needing and how much of a percentage deposit you have 
I would also say though don’t move out just because you feel judged or pressured to. If your parents are more than willing to let you stay and build up your deposit and you’re quite happy there then stay put. You’ll have more deposit and better mortgage rates available to you 

The price range of houses I'm looking at is around £160K, I don't want anything much bigger than that because then it'll possibly mean a bigger house which means bigger running costs.

Very sensible budget wise 
I would talk to a broker; there’s no reason that we can see why you wouldn’t be able to get the mortgage you’d require with your deposit 

ACG

Its nothing to do with Covid - general rule of thumb is 4.5x income. 
If you spoke to the broker whilst you were still paying one/both of those figures (£350/£200) the may have taken it into account rather than ignoring it and that could be the reason for the difference in lending amounts.

But if you have no commitments, £99k seems very wrong. 

[Deleted User]

Student loan maybe?