£84k income, £36k debt, 0% deposit – any mortgage routes left?

l_go

Hi

I have been with my landlord for 12.5 years, currently paying £1,700 per month and never missed or been late paying. He has now said he wants us out before the new renters bill comes in May.

I’ve been looking at my options as I am 40, I have a stable career and started a new senior role 5 months ago (with no probationary period) where I earn £84k plus I get £8.4k (10%) guaranteed bonus due in June.

My husband is 53, he has a chequered job history in sales, was recently made redundant and has been out of work for 6 months. Each time he’s out of work our savings are used to fund his share of the bills. He’s due to start a new job soon, but a mortgage advisor said to just do a sole application in my name as I will get a longer term which I agree with.

My issue is that I have zero deposit, £36k in debt across two loans and a credit card, but I do have a good credit score of 919.

Snapshot each month me paying everything:

Take home: £4730

Rent, bills and debt: £3,967

Disposable income: £760

Reality with husband input:

Take home: £4,730

Rent, bills and debt: £3,539

Disposable income: £1,191

Also in April I start paying my postgraduate student loan at £259 per month.

I have gone onto the Skipton online calculator to try and get a decision in principle for a mortgage of £300,000 with zero deposit. But every time it says I don’t meet their application scorecard.

Is owning and having stability just too much of a silly dream. I don’t want to be renting forever.

It’s keeping me up at night and I just don’t know when to apply or what to do. One mortgage advisor said wait 3 months, because December is a slow dull month on the market, but said make sure I keep as much surplus cash in the bank as possible. Another advisor said apply now?

Does anyone have any advice please, especially on eligibility or what underwriters are looking for with different situations.

Tabieth

The landlord may want you out by May but you’ll be able to stay longer than that. Just stay out, keep paying the rent and that will give you more time. So you’ll have an £8.4k bonus plus whatever you have saved between now and then as a deposit. Anyway you can reduce your outgoings between now and then? The bigger the deposit the better your position will be. 

l_go

Tabieth said:

The landlord may want you out by May but you’ll be able to stay longer than that. Just stay out, keep paying the rent and that will give you more time. So you’ll have an £8.4k bonus plus whatever you have saved between now and then as a deposit. Anyway you can reduce your outgoings between now and then? The bigger the deposit the better your position will be. 

True, but at the moment he has only got to give us 2 months notice. And he’s put in a planning application to demolish and rebuild so I doubt he will allow us to stay much longer than May.

Tabieth

l_go said:

Tabieth said:

The landlord may want you out by May but you’ll be able to stay longer than that. Just stay out, keep paying the rent and that will give you more time. So you’ll have an £8.4k bonus plus whatever you have saved between now and then as a deposit. Anyway you can reduce your outgoings between now and then? The bigger the deposit the better your position will be. 

True, but at the moment he has only got to give us 2 months notice. And he’s put in a planning application to demolish and rebuild so I doubt he will allow us to stay much longer than May.

He can’t physically drag you out of the property. There’s a legal route he has to follow (better qualified people than me can advise on details). You do not have to leave in May. 

Myci85

Your landlord would have to go through s21 eviction process, he can give you 2 months notice, asking you to leave, but only you or court can end your tenancy. Landlord going through court could take 6 months. And that's if he has done everything he needs to for the section 21 to be valid. If he hasn't (loads of threads on here detailing some of the things he would need to have done), you wait until the s21 notice expires, then point out just one of the things he hasn't got right, and the clock starts again. 

Your outgoings seem pretty high, might be worth going on to the debt board and doing a statement of affairs detailing everything and people can help you identify where you can reduce spending to help you either build up a deposit, or reduce your debt quicker. Either way, as previous poster said, you will be able to count on your April bonus as your landlord has no chance of getting you out by then. 

itsthelittlethings

Personally if I were you I’d be looking to find somewhere else, reckon to be there a year or two, attack the debt aggressively and try to build up a deposit, then look to buy. An SOA would be good as you have quite high debts but a good salary.

l_go

itsthelittlethings said:

Personally if I were you I’d be looking to find somewhere else, reckon to be there a year or two, attack the debt aggressively and try to build up a deposit, then look to buy. An SOA would be good as you have quite high debts but a good salary.

What is an SOA please?

itsthelittlethings

l_go said:

itsthelittlethings said:

Personally if I were you I’d be looking to find somewhere else, reckon to be there a year or two, attack the debt aggressively and try to build up a deposit, then look to buy. An SOA would be good as you have quite high debts but a good salary.

What is an SOA please?

Statement of Affairs. You don’t have to do it if you don’t want to but people will be able to give better advice if you do.

https://www.lemonfool.co.uk/financecalculators/soa.php

EssexHebridean

I’d second that the SOA is a good idea - although by the time everything is slowed for including debt payments, there may not be too much to save. It’s always worth a look though!

unfortunately your “good credit score” will be largely irrelevant when it comes to a mortgage application as those rely far more on affordability. Credit scores are largely a made up construct. 

l_go

itsthelittlethings said:

l_go said:

itsthelittlethings said:

Personally if I were you I’d be looking to find somewhere else, reckon to be there a year or two, attack the debt aggressively and try to build up a deposit, then look to buy. An SOA would be good as you have quite high debts but a good salary.

What is an SOA please?

Statement of Affairs. You don’t have to do it if you don’t want to but people will be able to give better advice if you do.

Thank you I will take a look now 

itsthelittlethings

l_go said:

itsthelittlethings said:

l_go said:

itsthelittlethings said:

Personally if I were you I’d be looking to find somewhere else, reckon to be there a year or two, attack the debt aggressively and try to build up a deposit, then look to buy. An SOA would be good as you have quite high debts but a good salary.

What is an SOA please?

Statement of Affairs. You don’t have to do it if you don’t want to but people will be able to give better advice if you do.

Thank you I will take a look now 

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