1st time mortgage

randombetas

Hello all my wife and I are looking for our 1st mortgage but we have a few questions, 

1) We have no to very little deposit (£1000 max) so are looking at a 1% deposit one or the Skipton track rate mortgage will this hinder us? 

2) Will they look at both accounts when deciding on if we're eligible for a mortgage (I pay my wife every 4 weeks when I get paid my half of the bills) as they all come out of her account. 

3) Are P60s better then a monthly wage slip as proof of income  (just worried as being paid 4 weekly I get 13 paydays a year)

4) Will it affect our application if we're claiming (in the process of) Universal Credit? 

5) If I have shares in a work save as you earn scheme (not matured or fully paid into) do they take that income into account also paying into a company pension? 

6) Will they lend to os we're 44 and 45 this year will this affect us, I realise the lending term might have to be less. 

7) If we get a Dip what kinds of information do they need to know to approve your application? 


Thanks Richard and Donna 

Devongardener

Info about the new 1% deposit proposals:  
https://hoa.org.uk/2024/01/1-deposit-mortgage/#:~:text=Many%20people%20who%20are%20renting,a%20home%20possible%20for%20them.

MWT

randombetas said:

Hello all my wife and I are looking for our 1st mortgage but we have a few questions, 

1) We have no to very little deposit (£1000 max) so are looking at a 1% deposit one or the Skipton track rate mortgage will this hinder us? 

I don't think there is a 1% mortgage that you would qualify for with less than £5,000 deposit at the moment, but the Skipton Track Record mortgage would work with zero deposit if you meet their rental requirement?

https://www.skipton.co.uk/mortgages/track-record-mortgage

Universal Credit will not be a problem but remember that you cannot include any housing benefit element as pay of your income as you will not receive that once you have a mortgage.

Your ages are not a problem but they will limit the term of mortgage available to you.

I would suggest you use the calculators on their website at the link above to get an idea of what they might be willing to lend based on your current rental payments and your joint income.

I hope this works out for you, but do try to understand the risks of taking on a 100% mortgage and not having savings sufficient to cover even a moderate unplanned event, like a heating or plumbing failure, or being able to buy furniture etc without running up more debt...