What are my chances of buying?

iram293

Hi all,

I am hoping someone can help me. I want to buy a property this year. I am on £32k pa and have £10000 deposit. I am thinking of a one/two bedroom house/flat for up to around £170/180,000. Im not too fussed about where i buy as long as its not too run down an area. I have one default on my credit file which i am trying to take steps to repair: I was told by my bank that although i have a default i do not have any agreements since then to show i am now in control of my file so I took out a loan of £1500 which i did not need just to try and repair my file.

Also, even though i have £10,000 deposit saved aside from the cost of purchasing (approx £5/6000), what are my chances of getting a 100% mortgage as I would like to keep the £10k as savings.

Thanks in advance for any advice.

Iram

beingjdc

Going over five times income with previous credit problems is going to be hard, in the current market, but if you can afford the repayments someone might let you. How will the likely repayments of £850 a month interest or £1100 capital compare with your current rent, in terms of budgeting?

iram293

hi, thanks for your reply.

I currently have around £1300 a month free for whatever after paying any outgoings. I live at home with parents and pay around £300 a month.

So what do you think of my chances?

selectcase

What area do you live in?? in my area "somerset" 1-2 bedoom flats are around the 80k mark 150k gets a decent 3 bed. you could probobly get a mortgage but you would be really stretching yourself tbh

Curious_Moose

If you're living at home paying £300 pcm why not stay? Of course it's understandable if you really want your own place, but from a financial perspective it sounds quite cushy.

Have you added up the council tax, gas, water, electric, insurance, TV licence, ground rent, service charge on a flat, oh and the mortgage. How would that compare to £300 pcm?

shane77

It seems that going for the 100% mortgage will be tough for you because you already have a default against your name and that counts against your favour. Banks generally do not give 100% mortgage because it is very risky unless the person has a very good credit score and credit history. Even if you have 1 default against your name that will lessen the chances of a 100% mortgage because then the bank does not have anything with them.

carolt

Don't do it - hold off until prices fall. 6 or 7 times income mortgages are not advisable at the best of times, but in a falling market it would be a particularly stupid move both for you and for any lender daft enough to lend it to you (if you could find one anyway, which I doubt).

If you want your own place, rent a flat or a room in a shared house - until you've lived on your own ideally in the area you want to buy, you won't have a very clear idea of what you like or daily running costs are anyway.