what are our chances of a mortgage?

antwilson

Hi All,

We have a baby on the way (september) :j , so are looking at buying our own place.

Weve got a 5% deposit saved up, and enough to cover fees (how much do these usually cost for a FTB?), so just wondering if weve got a good chance of getting a mortgage?

We would be looking at between £85,000 - £110,000 property (quite cheap i suppose compared to some places:beer: )


Joint earnings are £16,500 (me) and £12,000 (partner), however she is in process of changing positions within same company, so should be on more.
She will be on maternity pay, but working it out we should have enough money to cover for that.

Would be looking at staying in the house at least 5 years, so think 5 year fixed would be best mortgage? but if we found somewhere perfect, would possibly look at 10 year fixed?

Thanks

ickledee

Hey antwilson,

My boyfriend and I have just bought our First home last week. We had to go with a 90% LTV as there doesnt seem to be many lenders offering 95% and the fees for 95% are huge.

So if your looking at a £110K mortgage you will need (going by our experience)

Deposit - £11,000
Lawyer fees - £850
Survey £200

£13,850

maninthestreet

You're likely to need savings for a 10% deposit, plus fees, if you want to secure a mortgage.

antwilson

Hi,

thanks for the quick replies!

I thought 95% was still available?

Ive had a look on moneysupermarket, and theres a few on there - the cheapest being the post office with 5.89% for 5 years?

Thanks

Poppy9

When adding up your costs you should also take account of childcare costs if you OH returns to work full-time.

antwilson

Poppy9 wrote: »

When adding up your costs you should also take account of childcare costs if you OH returns to work full-time.

Hi, weve worked it all out and if she goes back to work, we will have enough leftover after paying everything (mortgage, bills etc) and still have enough leftover to spend on us/emergencies etc, its just whether it would be possible for us to get the mortgage thats the problem, especially with them all disappearing!

puddy

that post office one looks good

UK007BullDog

Go and see a broker is all I can say to give you a good overview of what is available and the cost.

You have your regular costs of living.
Babies are sooooo expensive!!!!
Daycare to come up with, you might only have part time work, as kids can throw in the spanner at times.

Mortgage fees
Solicitor
Survey fees
Moving fees

Bits and bobs for the property

Insurances like B&C, Life cover, CI, MRP, IPP, Health insurance.......

If things break you have to pay for the repair yourself.

Max you can borrow is 3x your income which makes £85,500. Some lenders might even look at 2.5 x your income as it is below average. You need a 10% deposit so would need £8,550 just for the house and another £3,000 for mortgage related fees. Then the extra for the move unless you have friends and family helping you.

So the property price you should be looking at is 80,000 to 85,000, not more.

An interest only mortgage on £80,000 is £400 per month. Repayment would probably be around £600 per month. I went on a 6% rate.

If you have any loans or CC's outstanding then that will work against you and reduce your borrowing ability. I take it you have a good credit record? If not you would need more than 10% deposit.

There are still 95% but with very harsh criterias and you might not fit the bill.