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  • FIRST POST
    • Mauser
    • By Mauser 9th Feb 18, 1:24 AM
    • 1Posts
    • 0Thanks
    Mauser
    I need a sanity check!
    • #1
    • 9th Feb 18, 1:24 AM
    I need a sanity check! 9th Feb 18 at 1:24 AM
    Hi,

    I'm new here and just looking for a bit of a sanity check regarding buying a first home.

    The vital statistics....

    I earn 65k, my wife 40k. We have savings of around 30k

    I have 5 late payments to a credit card on my credit file. Four of these will be gone from my credit file this time next year, and the other one will come off a few months later.

    Apart from that, it's clean. I've got one credit card with a limit of 9k. That currently has a balance of 500 and will be cleared this month.

    No other debts at all.

    My wife has a clean file with no debt either.

    So... am I wasting my time looking at houses 250k - 300k? Am i just dreaming? Would I be better waiting until the late payments are off my file?

    I haven't yet done any research, haven't spoken to a bank or a broker. Obviously i plan to, but i just wanted to know if i'm in the right ballpark.

    What's the consensus?
    Thanks!
Page 1
    • csgohan4
    • By csgohan4 9th Feb 18, 7:42 AM
    • 4,552 Posts
    • 2,841 Thanks
    csgohan4
    • #2
    • 9th Feb 18, 7:42 AM
    • #2
    • 9th Feb 18, 7:42 AM
    generally you can lend x4.5 of your income with debt being taken into account which would reduce your amount you can borrow. The above figures seem fine. A broker would be your best port of call to get the best product for you
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • The Palmist
    • By The Palmist 9th Feb 18, 8:02 AM
    • 709 Posts
    • 291 Thanks
    The Palmist
    • #3
    • 9th Feb 18, 8:02 AM
    • #3
    • 9th Feb 18, 8:02 AM
    Save aggressively and build more deposit.
    Nothing is more damaging to the adventurous spirit within a man than a secure future. - Alex Supertramp
    • bigisi
    • By bigisi 9th Feb 18, 8:53 AM
    • 238 Posts
    • 413 Thanks
    bigisi
    • #4
    • 9th Feb 18, 8:53 AM
    • #4
    • 9th Feb 18, 8:53 AM
    generally you can lend x4.5 of your income with debt being taken into account which would reduce your amount you can borrow. The above figures seem fine. A broker would be your best port of call to get the best product for you
    Originally posted by csgohan4
    The OP is looking to borrow money, not lend it.
    • enthusiasticsaver
    • By enthusiasticsaver 9th Feb 18, 9:10 AM
    • 6,614 Posts
    • 13,913 Thanks
    enthusiasticsaver
    • #5
    • 9th Feb 18, 9:10 AM
    • #5
    • 9th Feb 18, 9:10 AM
    For your earnings that amount of borrowing looks fine. If you have a 10% or more deposit that is good although I would continue to save to give yourself money for costs and maybe if you go for a 250k house you may be able to stretch to 15% which will give you the option of cheaper mortgage rates.


    Now to the issue of your credit history and late payments. This will depend very much on the lender so going to a mortgage broker may be a good idea. Sometimes lenders weight the mortgage interest rates if you have a bad credit record so it depends very much on whether they accept if you had legitimate reasons for late payments. Have you actually checked Noddle to see what is showing on there? I think if they are about to drop off your record it may not make much of a difference but the broker will tell you more.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • getmore4less
    • By getmore4less 9th Feb 18, 9:46 AM
    • 32,192 Posts
    • 19,352 Thanks
    getmore4less
    • #6
    • 9th Feb 18, 9:46 AM
    • #6
    • 9th Feb 18, 9:46 AM
    How much are you saving a month?

    With net income of around 6k by the time you find somewhere you should have 10% + costs in the bag for a 300k place

    With a mortgage(270k over 30y 2.5%-4%) of around 1k-1.3k you should still be able to save a lot to bring the LTV down to under 85%/80% over 2 years, credit clear and decent rates should be available.

    get a broker not all lenders are going to like the late payments.
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