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Mortgages.... Single mum ... no idea where to start!!!

(14 Posts)
TiredBunny Fri 11-Mar-05 16:59:22

Has anyone got a clue when it comes to mortgages?? I am trying desperately to buy my own place but as a single mum am finding it hard to find anyone who can lend me enough money. Anyone any ideas

milliways Fri 11-Mar-05 17:06:03

You have to prove you can afford the repayments. My employer used to have a 60% rule. Mtge + lns + essential utilities + life cover etc should be no more than 60% income, unless income so high the % remaining is obviously enough to cover usual expenditure. Think 60% has ne=ow been replaced with an income/expenditure that has to be proved affordable (we don't want to have to repossess anyone) & allow margin for rate changes. There is no fixed XSalary rule.

milliways Fri 11-Mar-05 17:06:05

You have to prove you can afford the repayments. My employer used to have a 60% rule. Mtge + lns + essential utilities + life cover etc should be no more than 60% income, unless income so high the % remaining is obviously enough to cover usual expenditure. Think 60% has ne=ow been replaced with an income/expenditure that has to be proved affordable (we don't want to have to repossess anyone) & allow margin for rate changes. There is no fixed XSalary rule.

TiredBunny Fri 11-Mar-05 18:49:48

I pay 475 rent at the moment and everything else is on top. Have managed to get offer of 107000 but that wont get me a flat where i am.

pinkmamma Sat 12-Mar-05 18:28:09

If you have over a 25% deposit (maybe from sale of previous house) then Halifax will not require proof of earnings ie. how much. I know someone who did this. As long as you can make repayments though. Worked fine for her as it was a small mortgage she knew she could afford. Good luck. Also have you thought of trying housing associations on a shared ownership scheme - they are not all horrible flats. Maybe ask at Citizens advice bureau

TiredBunny Mon 14-Mar-05 22:37:21

unfortunately i am in a rented house and have no way of getting a deposit. Suppose i am being ridiculous even contemplating buying but you have to start somewhere.

tammybear Mon 14-Mar-05 22:39:33

ive been thinking about this too tiredbunny. theres 100% mortgages, but i dont know much about them. im renting a house at the moment, work part time. im considering moving back home to be able to save up the deposit, but im looking at trying to save £20,000 on my own. if you find a way, let me know!

TiredBunny Mon 14-Mar-05 23:25:55

I have no way of saving money so feel helpless. I earn 27000 a year and can get a mortgage for 107 000 but that will barely buy a flat here!!!! Likewise if you think of any ideas let me know. Have considered selling my body but doubt anyone will have me!

bonym Tue 15-Mar-05 13:07:26

Tiredbunny - don't want to depress you but I would not advise even thinking about getting a mortgage if you don't have a deposit - on top of this you will also need money for stamp duty (1% at the level you're looking at), plus legal fees, survey fees and possible removal costs. In addition, the mortgage you have been offered is almost 4x your salary which is pushing things somewhat . There are 100% schemes available - don't know what your job is but a lot of these schemes tend to be geared towards "professionals" - ie. lawyers, architects, accountants etc. whose potential for future increased earnings is very good. The other thing to bear in mind with these schemes is the possibility of finding yourself in a negative equity situation - property prices seem to be levelling out and even dropping in some areas at the moment. If you can save sufficient for a deposit and other costs, then the shared ownership route is a good one to take. I bought my first property under a shared ownership scheme (I was a single mum at the time) and it was lovely - a modern 2 bed house on the same estate as other, fully private properties. It was a great step up onto the property ladder and I only moved as dd was due to start school and I didn't like the one where I was living.
(I'm a qualified mortgage adviser btw!)

helsi Tue 15-Mar-05 13:15:06

Can you go see an INDEPENDANT financial adviser?

bonym Tue 15-Mar-05 13:22:51

helsi - I am independent

helsi Tue 15-Mar-05 13:23:57

Sorry bonym - didn't see the bit in brackets at the end of your post. Didn't mean to offend.

bonym Tue 15-Mar-05 13:26:59

No offence taken ! [grin}

TiredBunny Tue 15-Mar-05 19:57:53

I get what your saying but just feel really fed up that as a teacher I cant afford to buy a house. I am on the lists for 4 housing association schemes but am not a priority they say. Will keep thinking about it though.... thanks for your advice though Bonym.

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