Mortgage hopes on low income £17000

metaldud · 5 January 2011 at 11:17AM

Hi i am a first time buyer and at the moment i am earning £17000pa from a job i have been in for the last 6 years, my girlfriend has a job earning £11000pa but the contract situation there means she has to sign a new temp contract at the beginning of every month meaning she cannot be coinsidered for the mortgage.

Between us we have saved £18000 for the deposit and are looking at houses around the £90000 to £95000 mark, What do you guys think my chances are with a sole mortgage on a property at these prices.

Also i and my girlfriend have no debts and owe no money or have any direct debits coming out.

[Deleted User] · 5 January 2011 at 11:21AM

4.5 - 5% times salary?

Slim.

BadgerFace_2 · 5 January 2011 at 11:24AM

It depends on a lot of factors, but I would say if you can put ALL of the 18k down as deposit, you may be able to stretch to 85-90k house price (mortgage of 70k which is 4.12 times your income). Though with that budget, I'd be looking at house up to 100k anyway, looking to knock them down.

Also remember you'll need (ball park) 2k for fees.

metaldud · 5 January 2011 at 11:40AM

we have the money for fees to one side already and this money is 100% for the deposit. I guess its time to ask the boss for that raise i didnt get for the last 2 years.

beetrootrox · 5 January 2011 at 10:04PM

Well done to you both for saving such a large sum of money between you. I'm honestly not sure of your chances but you have done eveything you can to give yourself the best chance of obtaining a mortgage by staying out of debt and saving a healthy sum of money. You have shown your commitment by doing this and it would be a great shame if you were unable to get a mortgage now.

I strongly recommend seeing a mortgage broker as soon as you are ready because they will have the best idea of lenders who might consider you and would be able to talk you through everything. In the majority of cases even brokers who charge will not charge until completion so you will not lose anything by seeking advice from someone qualified.

I wish you the best of luck.

metaldud · 6 January 2011 at 9:12AM

beetrootrox wrote: »

Well done to you both for saving such a large sum of money between you. I'm honestly not sure of your chances but you have done eveything you can to give yourself the best chance of obtaining a mortgage by staying out of debt and saving a healthy sum of money. You have shown your commitment by doing this and it would be a great shame if you were unable to get a mortgage now.

I strongly recommend seeing a mortgage broker as soon as you are ready because they will have the best idea of lenders who might consider you and would be able to talk you through everything. In the majority of cases even brokers who charge will not charge until completion so you will not lose anything by seeking advice from someone qualified.

I wish you the best of luck.

Thankyou i now have an appointment made for the end of the month for a broker to see where we stand. I will let you know how it goes.

beetrootrox · 6 January 2011 at 2:16PM

I'm glad you made that appointment. Please do let me know how it goes.

My boyfriend and I are also meeting with a mortgage broker at the end of the month - we earn less than 30k between us but have managed to save a 16k deposit, looking for a joint mortgage of 90k. It's good to know of someone else on a low income who is trying to get on the housing ladder.

Let's just hope lenders can see our potential and won't knock us back just because we don't earn as much as they do! I think what you're going to be asking for is perfectly realistic as you're obviously clued up on how to handle money.

metaldud · 6 January 2011 at 4:00PM

beetrootrox wrote: »

I'm glad you made that appointment. Please do let me know how it goes.

My boyfriend and I are also meeting with a mortgage broker at the end of the month - we earn less than 30k between us but have managed to save a 16k deposit, looking for a joint mortgage of 90k. It's good to know of someone else on a low income who is trying to get on the housing ladder.

Let's just hope lenders can see our potential and won't knock us back just because we don't earn as much as they do! I think what you're going to be asking for is perfectly realistic as you're obviously clued up on how to handle money.

We have only been saving for a year and a bit aswell so hopefully that is taken into account because we have lived with nothing just to get a good deposit together. with 30k between you i think thats enough for a 90k house to be honest.

hastie · 7 January 2011 at 1:14PM

You have done really well to save up that deposit.

You are going to find it difficult to get a mortgage at a good rate.

I have a thought on a different tac. Any couple as comitted to their goals as you guys appear to be should be earning more money!

Have you looked at retraining, or taking on additional bar job? Often the extra income can be submitted for a mortgage. Better still, ask your boss for a rise! If you are good staff, they would be crazy to lose you.

I have been stuck in poorly paid jobs because I enjoyed them, but the long view is that you work for money! Good luck.

herbiesjp · 7 January 2011 at 1:20PM

You should be able to get a mortgage.

If you could get the LTV to 80% it would mean getting more and better options available.

How long has your gf been in this situation?

sharloid · 7 January 2011 at 1:24PM

Maybe it would be worth looking at cheaper houses just to get your foot on the ladder? My other half earns £13000, had managed to save up a £10000 deposit and got a mortgage for £47000. It was a bit of a struggle to find this but I wish you all the best!

Mortgage hopes on low income £17000

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