How will I afford a property (20-30k deposit, full time job)

sim2335

also also the mortgate in principle is after having a zoom interview with Halifax, mortgate advisor, what are chances after that it will be declined I have been honest about everything asked.

Getting_greyer

sim2335 said:

Thanks

Looking in East Midlands, city, 

I only drive locally, so don’t want to move too far.

So I think buy to let is out of the question.

I live with Parents  at the moment and save about 940 a month.

Also I think flats are out of question as their leasehold and I don’t want to make any mistakes, as I don’t know what I’m doing.

I looked on Zoopla and right move before.

However through google i have now found some proprierts for 135k, what’s best website with most properties.

How do you do RM search 

RM = Rightmove. 

Get yourself a broker mate, especially with history of missed payments.  As previously said by another poster, some are fee free but some are a few hundred quid but could save you loads in terms of money and or stress.

kinger101

Agree with others.

(a) find somewhere you can afford in a less desirable area/smaller property or save more.  We all have to start somewhere.
(b) use a broker if you have issues with your credit history.

I'd not recommend a broker, but if there's any chance a lender might turn you down, you need to use one.  Every time you're refused a loan, this also goes on your credit record diminishing your chances further.  A broker will sanity check your affordability and then only suggest lenders likely to accept you as a borrower.

DIPs/AIPs are not worth the paper they're written on.  

K_S

sim2335 said:

I got a Mortagte in principle for 114k for a property

I got 10k deposit and my mum can gift  me 10k, I can also save extra 10k, in 10 months to have 30k deposit, ideally I don’t want any from mum.

However prices for houses are about 160k

I wouldn’t mind a flat however there all, Leasehold so very hard to sell in 5-10 years.

Credit scores, excellent experien an

999

Clear score 804 stable

Credit karma 608 Good

No debt other then student loan 9500

Pay day loans over 2 years all paid in time

Salary 23500, bonus 2000 a year

5 miss payments last six years 2 in row 2020

3, 2019, 1 alone and 2 separate

What should I say when they ask why, reason is I was manipulated  by friend so could not pay them and it was took out to help brother, in my name.

And that time I was unaware miss payments would effect that much.

How about buy you let for now, at least I will get on the ladder and when I sell could make more

What about a broker, for higher lending will that cost too much, I don’t have thousands to spend on them.

Including bills and mortgate I could afford to pay about 800 a month, if I don’t save any money

@sim2335 Limited to the mortgage related parts of your post -

- if the 114k Mortgage In Principle is one that was issued by a lender after speaking to a whole of market broker, that's good. If not, based on the limited info in your post (and assuming no other major complications in the background) I would expect at least 120k+ with a basic of 23.5k and 2k bonus with a track record and recommend that you speak to a broker. Plenty of mortgage brokers don't charge fees, the MSE guide here can help you find one https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3

- payday loans and missed payments more than a year old should not stop you from getting a mortgage, especially with a 30k deposit which should translate to at least 15%+ deposit. 

As it looks like you need to maximise borrowing, if you haven't already, I would definitely recommend speaking to a whole of market broker who can look at your entire circumstances and give you a realistic and achievable borrowing figure so you know exactly where you stand with respect to your budget.

Good luck!

KeepOnKnitting

sim2335 said:

Including bills and mortgate I could afford to pay about 800 a month, if I don’t save any money

I think this sounds like an uncomfortable position to be in. You need to be able to pay for contingencies like when something breaks or repairs need doing. Any chance you can increase your income?

Sarah1Mitty2

sim2335 said:

Thanks

Looking in East Midlands, city, 

I only drive locally, so don’t want to move too far.

So I think buy to let is out of the question.

I live with Parents  at the moment and save about 940 a month.

Also I think flats are out of question as their leasehold and I don’t want to make any mistakes, as I don’t know what I’m doing.

I looked on Zoopla and right move before.

However through google i have now found some proprierts for 135k, what’s best website with most properties.

How do you do RM search 

With interest rates rising you could build a nice little savings pile by keeping on doing that, should you just stay at parents a bit longer maybe?

tracytown

Not sure what you mean with "Leasehold so very hard to sell in 5-10 years" in what context?

The issues with leasehold are the following:

1. Try get at least 100 years on the lease, the longer the better
2. Anything below 90 years try to avoid (below 80 you wont get a mortgage approved usually)
3. Leasehold usually contain charges
 - Maintenance charge
 - Ground rent

When searching always ask how long is the lease, what the maintenance charge and ground rent charges are.

Other things to factor in budget:
Leasehold often have one off charges for deed of covenant and some other rip off charges when you first buy, prices vary across the country. Often people don't factor these in.

Your solicitor will inform you of all these elements anyway, so there is nothing to be worried about. The main thing is asking the estate agent before viewing the lease length and charges. They often do not put them on the advert.

Obviously you will need to budget in the monthly maintenance charges into your overall costs.

RAS

tracytown said:

Not sure what you mean with "Leasehold so very hard to sell in 5-10 years" ..................

The main thing is asking the estate agent, before viewing the lease length and charges. ????

The main thing is asking the estate agent before viewing, the lease length and charges. ???

Alternatively, download the lease from the Land Registry HM Land Registry - GOV.UK (www.gov.uk) before booking a viewing. Probably cost less than the transport costs to view?

The EA probably only knows what the seller told them, and that could be anything.

Sarah1Mitty2

Sorry maybe I am missing something but if you save nearly £1000 per month why the need for pay day loans?

fewcloudy

Sarah1Mitty2 said:

Sorry maybe I am missing something but if you save nearly £1000 per month why the need for pay day loans?

Yes you are. The pay day loans were paid off 2 years ago, so taken out even longer ago.
He saves nearly £1000 a month now, in 2022.
His circumstances have clearly changed.