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    • Biggish_who
    • By Biggish_who 10th Jun 17, 12:55 PM
    • 12Posts
    • 1Thanks
    Low income, what chance do I have?
    • #1
    • 10th Jun 17, 12:55 PM
    Low income, what chance do I have? 10th Jun 17 at 12:55 PM
    I'm starting to look at buying my first home. It will be a one bed flat, which is going to be 80 or 90k where I live.

    I am 31 years old, but my work history isn't great. I left sixth form and worked in retail (in the same job) for about 10 years. But my hours were variable, and my core hours were only part time.

    Then I went back to uni, got my degree. And started my new FT job in October. My salary is 17,500. Also, I'm on 12 month probation but the job is going well and I love it, so there's no reason to think I won't stay on. But I realise that means I can't apply for anything until October.

    By then I will have about 10k saved. (My parents let me live at home rent free, so I can save almost all my money except running my little car).

    My parents have paid off their house, and have a good income and savings. They will help me out however they can. But they're approaching their 60s, so I'm guessing they won't be able to be named on the mortgage.

    They will gift me some extra for the deposit. But I don't want to take the mickey.

    Online calculators say I can borrow between 58 and 74k, but I don't believe they are very accurate.

    Also, I believe my credit rating should be fairly good. I've had a loans, credit cards etc before, and never missed a payment or paid late before. I've no outstanding debt (except student loan, which I don't pay back due to my low salary).

    So what are my chances? If I keep saving and then look at applying for a mortgage maybe in the new year.

    Please let me know if there is any crucial info I have missed! Many thanks!
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    • Biggish_who
    • By Biggish_who 13th Jun 17, 7:42 PM
    • 12 Posts
    • 1 Thanks
    You mentioned about loans and credit cards in your original post and I think there was a typo. Did you mean you've never had any?

    Just one little point - it is possible to get declined a mortgage because of lack of credit. By that I mean that the bank will look at your credit file to assess whether they think you are good with money basically. If you use a credit card and pay it off in full by direct debit every single month, then this shows the bank that you are able to use credit wisely and that you can manage your money responsibly. It builds a little credit history up on your account. If you have absolutely no credit history, then it can be difficult for the lender to judge whether you're a risky person or not, and it has been known for people to be declined for having no credit history. I would advise that you get a credit card, use it for purchases and pay it off in full by direct debit every month. This will build some credit history for you and make you look good to the lender. You won't be charged any interest on purchases as long as you pay it off in full each month.
    Originally posted by smem18
    Hiya and thanks for replying.

    No, it wasn't a typo. I have had them before.

    I've had a few credit cards before which are all paid off. I haven't always paid them in full each month, but I've never missed a payment or paid late. I did just used to pay off the minimum for a while though. But they were fully paid by the end of 2015. (While they were interest free) I hope this isn't too bad.

    I've also had a small car loan, a store card, and something on finance. Which I've paid off now and always paid on time, etc. Also mobile phone contracts.

    I still have one credit card open, but I haven't had the need to use it for ages really.
    It's already set up to pay off but direct debit each month... maybe I could just do something like always put my petrol on it?

    I thought about doing that before, but I couldn't decide if it would be worse than not using it because it makes it look like I can't afford my monthly expenses.
    • Biggish_who
    • By Biggish_who 13th Jun 17, 7:44 PM
    • 12 Posts
    • 1 Thanks
    Totally agree on this one. I think your best bet ( and safest) is to contact an experienced broker and ask him/ her for opinion on your specific case, while you keep saving for the deposit.

    Good luck!
    Originally posted by abbieJ
    I think this would be for the best. And thanks.

    P.s. Sorry about all the individual replies, I really couldn't get the multi quote feature to work!
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