First time solo buyer issues

mattyjames83

Hi guys, I'm a first time solo buyer and need some advice please. I've got a deposit of 60k at time of writing and looking at properties around the 190-210k mark. I've spoken briefly to a mortgage broker and they think based on my solo earnings I'll only get a loan of about 106k making me 20-30k short. I know for a fact mortgage payments can be easily met but would i still be refused the above mortgage. Is there any other way around this based on the large deposit I have? Surely lenders can't expect a deposit of around 80k??? Any help would be greatly appreciated 🙏.  Matt

K_S

@mattyjames83 What's your income and debt in the background? Unfortunately, for most lenders affordability is quite black and white. While there can be significant differences in the way specific lender's calculate affordablity, it's all quite clear as per their calculators and criteria.

mattyjames83

It's 24k with no debt.

K_S

mattyjames83 said:

It's 24k with no debt.

@mattyjames83 With 24k basic income on a permenant contract, no debt, no dependents, 1983 born (I'm assuming that) and no adverse credit history, you will max out at 108k (4.5x) with most mainstream/mainstream-ish lenders, with a couple that may consider lending up to 115-116k or so.

mattyjames83

Ok thank you that's what I thought and realised they really don't want you on that ladder do they!

missile

"They" do not want to be selling you a mortgage that you cannot afford. Have you considered shared ownership?

mattyjames83

But I can afford it that's the thing. And yes, looked briefly at shared ownership but don't know enough about it so maybe I need to delve into it a little more maybe.

MovingForwards

You've always the option of looking in other areas where properties are cheaper.

Edi81

you can  afford it at current interest rates. What if rates went to 5-6%?
also, your ongoing costs such as council tax, utilities are a higher proportion of your take home than people on a higher pay. 

As others have suggested shared ownership may be a good option for you. 

mattyjames83

Thank you everyone for your advice. Much appreciated. Will keep looking and keep saving 👍

ts21

There's also help to buy if you would consider a new build - you then only need to borrow the 75%. There's an additional affordability calculation on this for the scheme, in addition to mortgage affordability, you can check that here https://www.gov.uk/government/publications/homes-england-help-to-buy-equity-loan-calculator-and-guidance