Help! FTB Needs Mortgage Advice for Govt. Backed Scheme

m344

Hi all

Any help or advice you have would be greatly appreciated. 

I'm a first-time buyer who wants to get on the property ladder. As a singleton with a salary of just over £40k in London and deposit of £30k, I'm finding it difficult. I definitely want to use the help to buy equity loan or shared ownership and could put a deposit down of £30k. My mother doesn't own and with a salary of £24k could boost my application but she is currently a temp (although has been in the same job more than year). Her contract is usually a couple of months and then they've been continuously extending all this time. Would this be a help or hindrance on my mortgage application? I'd like a two bed two bath in London so £64k would give me more of an advantage but if her being a temp would have my mortgage declined then I'd rather not do it. She has no debts, credit loans etc and does have savings so it's just the temp side I'm worried about. Please share advice if you have it.

*I'm completely aware of the negatives of share ownership and etc. I'm more asking about mortgage and affordability here. I'm 100% certain it's the right decision for my circumstances. 

K_S

@m344 Your scenario and how much you would like to borrow isn't entirely clear, but based on the limited info in your post, here are a few thoughts -

- Your mum will need to be an FTB to be on an H2B equity loan mortgage.

- If she's been with the same employer with a consistent basic pay of 24k for more than 12 months, there should be options to use her pay. There isn't any reason to "risk" a decline, you just need to go with the right lender if there is one.

getmore4less

Are you sure you want to live with your mum?

Getting in can be the easy bit you need an exit strategy, that can be very hard without income growth or lumps of cash in your future.
HAving mum involved just complicates it further.

m344

She is a first-time buyer so this aspect would be fine.
She gets paid an hourly rate but pro-rata it's about 24k.
So I'm not sure how much maximum I could borrow which is also what I want to find out.
But as an example, there's a property for 435,000 share price of £108,750. min deposit needed £10,875.
Breakdown they provide: 

£748

Rent

£149

Service charge

£497

Mortgage*

Calculated using a representative rate of 3.64%

m344

getmore4less said:

Are you sure you want to live with your mum?

Getting in can be the easy bit you need an exit strategy, that can be very hard without income growth or lumps of cash in your future.
HAving mum involved just complicates it further.

Would not be intending on living with her, she's renting a place and happy there. She wouldn't want to move in with me lol. Would I have to live with her under the scheme rules as didn't think so? If so she would be happy to "conveniently" move out shortly after moving in.