help ftb please?

weesie81

annual income from salary & working tax credits £25k
monthly loan commitment £185 has 5 years remaining
mbna credit card balance of £1744 paying off as much as possible per month
deposit £6k

price of 2 bed houses around here £125k
credit scores with equifaf were 377 for hubby and 407 for me
we are up for looking at a longer term over 35 years as we are both under 30 and we have 3 small children our max monthly payment would be up to £650

can this be done and by who? please help

neas

I'd clear all your debts first if possible... then your on a fresh plate.

Supposedly a reduction in prices will occur soon so in the time you have payed off the rest of your debts houses might have dropped by 10k or so... so you'd have put yourself in an even better situation for yourself and your family.

weesie81

waiting 5 years is not really an option i can clear the credit card within a few months though!
is there no lender that would suit us?

JoJoArmani

Why don't you try Charcol - you can put all the info in and see what comes out in terms of the monthly payment etc....

I think some lenders only offer up to 4.5x salary - but most people discourage lending so much (from what i've read on here).

What about looking at 50% or 75% ownership to get you on the ladder?

I'm no expert but its just a thought....:D

weesie81

hi whats charcol?
no shared ownership in this area just a small village and don't want to leave as my little girl is at school here

JoJoArmani

http://www.moneysavingexpert.com/mortgages/best-mortgages-cashback
check this link - give loads of info about mortgages - you need to read this to make sure you have a clearer picture of what you are letting yourself in for.

Charcol is a mortgage broker. But please bear in mind the costs of moving - and mortgage fees etc - it can all add up.

Best of luck!!!

JoJoArmani

there is a link to charcol in the page link above!

weesie81

had a look filled it in and 0 results found?

JoJoArmani

Hi

Try that London & "something" Martin mentions in the article - they are also brokers.

JoJo

JoJoArmani

I've just checked - its because you don't have enough deposit - I tried entering £125K prop value with £112500 mortgage (10% dep) and some results came up - cheapest was with Aliance and Leicester at £648 odd per month.

Try it agin with a different deposit value see what u get.

Tax credits I think, can be worked out gross and used for income terms - in other words - lender will look at tax credit as "income after tax" and will therefore calculate what you would be earing to get that amount after tax. This is what they did for me at yorkshire building soc - but perhaps not all lenders will let you do this - or might not even take tax credits as income.

have you thought about interest only - just to start you off and then go on repayment when you are earning more?

JoJo

JoJoArmani

Try ringing Charcol - see what they say....