Please Advise.

Niklas33 · 24 September 2018 at 7:41PM

Hi Good Evening.

Myself and my Partner are looking to buy our first property, we don't want to go any higher than £150,000.

I work part time, as i'm still a student and i earn £13,000 p/a
He works full time and earns £23,000

We have £8000 saved in our HTB ISA.

Would we be successful in applying for a Mortgage in your opinions?

Any advice would be really appreciated.

Thanks.

ACG · 24 September 2018 at 7:43PM

You can check the lenders affordability calculators online.
There is no information in terms of credit history or commitments so it is difficult to say whether you are likely to be accepted but on the face of it there should be options.

Niklas33 · 24 September 2018 at 7:46PM

Apologies.

Our outgoings are as follows.

£40 Per Month on Travel. (Just myself)
£47 Per Month on Phone Contract (Just myself)

My partner who earns £23,000 has no financial commitments.

We have no children.

peter12345678910 · 25 September 2018 at 5:35AM

I would consider a 3 bedroom if you are planning to have children. As in my case an extension could easily cost over 40,000. But 8,000 may not be enough as buying fees can be over 1,000.

Lungboy · 25 September 2018 at 7:23AM

Using a rough guideline of 4x salary you're very close to the maximum.

Are those really your outgoings? You don't eat? Or have any form of insurance? Or run cars? Etc

ACG · 25 September 2018 at 9:34AM

I think he/she has listed their expenditure as anything outside of the norm (ie food, heating, travel etc).
Most lenders will go up to 4.5x income so I think from an affordability fine you should be fine.

If you have set aside £1k for fees, the solicitors bill will probably come in at best part of that. You may need money for a valuation (£300ish) unless the mortgage comes with a free val an moving costs, if you need to hire a van or something.

But overall on the face of it, you should be fine.

obay · 25 September 2018 at 9:39AM

Niklas33 wrote: »

Hi Good Evening.

Myself and my Partner are looking to buy our first property, we don't want to go any higher than £150,000.

I work part time, as i'm still a student and i earn £13,000 p/a
He works full time and earns £23,000

We have £8000 saved in our HTB ISA.

Would we be successful in applying for a Mortgage in your opinions?

Any advice would be really appreciated.

Thanks.

Why not shared ownership so you've got the asset and upgrade later on? some new builds are lovely and built nice. Just some advice to see if that was a way too. It puts you in a good position for the future as you'll have the asset for when you sell the house + a little bit of rent, not too much.

My brother in law just got a 2 bed new build, quite nice 50% shared ownership for £67k. He put down £20k deposit and pays around £470 for rent + mortgage per month.

- not saying that you can't afford the £150k. just sometimes starting smaller is much better so you've got the higher deposit later on in life when you come to sell.

Niklas33 · 25 September 2018 at 12:48PM

Thanks for the responses.

I think the Help To Buy scheme will be our route, as i think buying off the market with a mortgage is not within our remit at the minute.

Can anybody please advise the process i've been told by the Bank that 90 percent of all new builds are Leasehold and we'd want a freehold.

ACG · 25 September 2018 at 1:30PM

I very much doubt anyone in a bank knows what level of new builds are freehold/leasehold, unless you know the head of Mortgages maybe? Sounds like someone has just plucked a figure from thin air based on what they read in the daily mail.

Niklas33 · 25 September 2018 at 6:54PM

Would Help to Buy/Shared Ownership be a better option for us in our current position?

poppy10_2 · 25 September 2018 at 10:17PM

No. Shared ownership is a scam.

Please Advise.

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