What can we afford

sagara

Looking to self-certify with around £1200 a month disposable income to cover all housing costs (mortgage, insurance, bills etc). Wanting to pay minimum deposit. Does anyone know the best place to go to find out what we could borrow on this and at what price? Many thanks, Sagara

herbiesjp

What is the purchse price you are looking for?

What deposit do you have to put down?

What is your joint income?

sagara

What is the purchse price you are looking for?
This would be what we can borrow. Living in the North East where cheap houses are available, we could match the house to our borrowing potential.

What deposit do you have to put down?
As little as possible, maybe £3k.

What is your joint income?We earn £2,200 a month after tax

dwsjarcmcd

Why do you want to self cert? If you are looking for a higher level of borrowing, then that is not the answer. Lenders write this type of business for people who can't prove their income because their occupation is based on tax mitigation, not for someone e.g. earning £10k but says they are want to borrow £90k.

Also these type of mortgages tend to be more expensive!

sagara

Because our work is partly agency work and though we have never had a problem hitting £2k after tax a month, we cannot prove we will get this. We realise one's home is at risk if we don't meet payments but are confident we can and would be paying a not disimilar amount in rent anyway.

Joe_Bloggs

Why don't you consider saving your money for a trial period ? Your savings can demonstrate to a lender a dedication to the cause of home ownership and earn interest. This deposit can also reduce the interest rate they will charge you for borrowing money. You may have to consider paying off loans/credit cards etc.
J_B.

meanmachine_2

Why do you want to pay as small a deposit as possible?

If your take home really is 2.2K then you shouldn't be struggling to save.

I'd wait, build up a deposit and then try for a standard mortgage through a broker.

herbiesjp

For a self cert mortgage yuo could be looking at 15% deposit - you could get away with 10% with some lenders.

On the basis you say you have 3k deposit if that was 10% the maximum house price you could look at would be £30k