Mortgage chances

TwoYearToMove

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

Emmia

TwoYearToMove said:

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

I'd say your chance is pretty low, your age in particular counts against you, unless you can demonstrate a retirement income that will cover the mortgage payments.

Brie

How recent were the late payments?  The more recent the more they will count against you.

"basically no debts"?  No overdraft (even if not used), cards cleared each month, just a mobile contract or motor insurance paid monthly?  Now's the time to ensure you are registered to vote too.

And yes your age could count against you, particularly if your job is quite physical (outdoor construction as opposed to accountant).  Might be one of the situations where you are best going through a mortgage broker perhaps?

TwoYearToMove

Emmia said:

TwoYearToMove said:

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

I'd say your chance is pretty low, your age in particular counts against you, unless you can demonstrate a retirement income that will cover the mortgage payments.

Brie said:

How recent were the late payments?  The more recent the more they will count against you.

"basically no debts"?  No overdraft (even if not used), cards cleared each month, just a mobile contract or motor insurance paid monthly?  Now's the time to ensure you are registered to vote too.

And yes your age could count against you, particularly if your job is quite physical (outdoor construction as opposed to accountant).  Might be one of the situations where you are best going through a mortgage broker perhaps?

I would definitely go through a mortgage broker, I'm just curious in those circumstances, what my chances would be to get around 160k. I'm an author, so my income comes from my backllist, which is sustained purely from advertising, I don't have to do anything other than that.

Emmia

TwoYearToMove said:

Emmia said:

TwoYearToMove said:

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

I'd say your chance is pretty low, your age in particular counts against you, unless you can demonstrate a retirement income that will cover the mortgage payments.

Brie said:

How recent were the late payments?  The more recent the more they will count against you.

"basically no debts"?  No overdraft (even if not used), cards cleared each month, just a mobile contract or motor insurance paid monthly?  Now's the time to ensure you are registered to vote too.

And yes your age could count against you, particularly if your job is quite physical (outdoor construction as opposed to accountant).  Might be one of the situations where you are best going through a mortgage broker perhaps?

I would definitely go through a mortgage broker, I'm just curious in those circumstances, what my chances would be to get around 160k. I'm an author, so my income comes from my backllist, which is sustained purely from advertising, I don't have to do anything other than that.

Your other problem is that you want to borrow more than 4x your income

£27k x 4 = £108k that, plus a £15k deposit means your upper limit is probably £123k - that's some way short of the £160k value of the place you want to buy.

If you managed to find somewhere that would take 4.5 x your £27k income (£121.5k) then you'd have £136.5k - still a fair way off.

Even with 5x your income you'd still only have £150k including the deposit. 

Could you get another job, and save that money to help boost your savings?

TwoYearToMove

Emmia said:

TwoYearToMove said:

Emmia said:

TwoYearToMove said:

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

I'd say your chance is pretty low, your age in particular counts against you, unless you can demonstrate a retirement income that will cover the mortgage payments.

Brie said:

How recent were the late payments?  The more recent the more they will count against you.

"basically no debts"?  No overdraft (even if not used), cards cleared each month, just a mobile contract or motor insurance paid monthly?  Now's the time to ensure you are registered to vote too.

And yes your age could count against you, particularly if your job is quite physical (outdoor construction as opposed to accountant).  Might be one of the situations where you are best going through a mortgage broker perhaps?

I would definitely go through a mortgage broker, I'm just curious in those circumstances, what my chances would be to get around 160k. I'm an author, so my income comes from my backllist, which is sustained purely from advertising, I don't have to do anything other than that.

Your other problem is that you want to borrow more than 4x your income

£27k x 4 = £108k that, plus a £15k deposit means your upper limit is probably £123k - that's some way short of the £160k value of the place you want to buy.

If you managed to find somewhere that would take 4.5 x your £27k income (£121.5k) then you'd have £136.5k - still a fair way off.

Even with 5x your income you'd still only have £150k including the deposit. 

Could you get another job, and save that money to help boost your savings?

Not sure, but something to think about.

Emmia

TwoYearToMove said:

Emmia said:

TwoYearToMove said:

Emmia said:

TwoYearToMove said:

If someone was a first time buyer, 55 years old, self employed, had 2 year's books. The first around 24k the more recent around 27k, with around 15k deposit, with basically no debt, and a reasonably clean credit report (nothing missed but some late payments), what are the chances of them getting a mortgage on a flat of around 160k? 

I'd say your chance is pretty low, your age in particular counts against you, unless you can demonstrate a retirement income that will cover the mortgage payments.

Brie said:

How recent were the late payments?  The more recent the more they will count against you.

"basically no debts"?  No overdraft (even if not used), cards cleared each month, just a mobile contract or motor insurance paid monthly?  Now's the time to ensure you are registered to vote too.

And yes your age could count against you, particularly if your job is quite physical (outdoor construction as opposed to accountant).  Might be one of the situations where you are best going through a mortgage broker perhaps?

I would definitely go through a mortgage broker, I'm just curious in those circumstances, what my chances would be to get around 160k. I'm an author, so my income comes from my backllist, which is sustained purely from advertising, I don't have to do anything other than that.

Your other problem is that you want to borrow more than 4x your income

£27k x 4 = £108k that, plus a £15k deposit means your upper limit is probably £123k - that's some way short of the £160k value of the place you want to buy.

If you managed to find somewhere that would take 4.5 x your £27k income (£121.5k) then you'd have £136.5k - still a fair way off.

Even with 5x your income you'd still only have £150k including the deposit. 

Could you get another job, and save that money to help boost your savings?

Not sure, but something to think about.

You might want to try an online mortgage calculator, to look at likely monthly payments on what you want to borrow, and the potential term length. The one from money helper linked below will give you an indication of the sums/payments involved.

https://www.moneyhelper.org.uk/en/homes/buying-a-home/mortgage-affordability-calculator