help getting a mortgage

ryfowler

Hi,
I'm looking for some advice if there is any to my situation.

I'm currently looking to take out a mortgage to move out of rental prop. My self and my partner have young child and i am the sole provider i currently earn £18k i also have a bonus package however i have nor recieved any yet as i am at a new firm. I also have bad credit however not in the last couple of years. my partner has credit (1150K mastercard and 1k o/d) but does not work.

Some how i need to get a decent mortgage and decent repayments/others. I've no idea how to begin or if there is any hope for a realistic morgage. All help is Welcome!!!!

Thanks

Ry

_Andy_

Ry - What amount do you consider a 'decent' mortgage?
How much deposit have you guys got?
And also when you say 'bad credit' could you tell us a bit more about that?

Thanks

ryfowler

Hi,

Thanks for your response.

In terms of bad credit i took out a mobile contract when i was 16(now 23) and left a remaining balance and i also took out loans of around 500 pund with welcome and provoident a year or so later. I should really get a credit report. I deally i'd like to clear these off if possible.

In terms of decent mortgage it's got tp be 100k or above to buy something decent round here. and we'd have a deposite (hopefully of 5-7k)

ryfowler

ryfowler wrote: »

when i was 16(now 23)

sorry mean 18 and 19. sorry

Conrad

None of us can really give you any meaningful pointers. The problem is ALL decisions are down to computer credit scoring - this and this alone will determine how much you can borrow.
If you are declined by mainstream lenders, there are others that operate in the 95% market but the rates are high.

My gut feel is that you do not earn enough to support the mortgage you anticipate and provide for your partner and child.
See if you can save for a few years and build that safety cushion.

_Andy_

moneysavingexpat wrote: »

Hi, I was in a similar position and found this Mortage Calculator quite useful.

From personal experience I'd say that you should not rely on property price rises (i.e. stretching yourself to the limit in the hope of making a good return in the long run). Renting is not such a bad idea in the current market, although I'd suggest renting should always be short term as it's 'dead money' - You're never going to make anything out of it.

Hope this helps.

Lame spammer reported.

lynnexxxo

A mortgage of 100k will cost you around £600- 650 . On a salary of 18K i'd imagine your take home pay to be around £1125. With council tax at least £100. elecy and gas another £100, i'd reckon you would struggle to pay that size of a mortgage.

Also at the current time I'd say you really would strugglel to find a lender who will lend five times your salary.

Will your salary rise much with the bonus you mention?

poppy10_2

18k joint income won't get you anywhere near a £100,000 mortgage, I'm afraid.

loveandlight

Ah, but if you take in a lodger in the new house some lenders will consider that as income towards your application for a new mortgage.

I have a friend who has done exactly this and got a mortgage when she would have otherwise not earned enough for a mortgage.

ryfowler

HI,

Thanks for the responses. In terms of bonus it takes my salary up to around the 27k mark.

I also recieve working family tax which gives me a extra 600pm to play with. I'm currently paying 550 pm rent so a jump to 650 would not cause an issue.

My partner is also planning a return to pt work when baby permits so it would be short term.

I know this is an impossible situation but i'm still hopeful.

lynnexxxo

Why not give it a few months so you have evidence of your bonus for a mortgage company.

A salary of nearly 30K, especially if your partner also starts earning makes a 100k mortgage much more obtainable. If you save as much as poss in the mean time a bigger deposit will always help, especially as solicitors fees, surveys etc will set you back about 1k.