Mortgage on low income

[nomorename]

To think I can get a mortgage?! Wondered if anybody could share any wisdom or secrets! I have a sizeable deposit due to a little inheritance but a low income so as a single applicant, I can't get a mortgage! Any tips on options for the lower paid? TIA

Well buying within your budget is the biggest one? If you have a Loan to value of 75% you should get a better interest rate but you still need to be realistic not to look for anything greater than 3.5 times your income as unlikely you'd get approved for it

Impossible where I live... seems crazy "i can afford to rent" but can't "afford to buy"

It is an awful position to be in. Young people we know have bought a very cheap terrace in Liverpool for £65k. They lived in it for a short while but then gained consent to let and moved further south and rented so they could work in London. The rent isn't high but is paying off their mortgage and has gone up a little in value. It's a big hassle being a landlord though.

You need to give us your figures if you want any accurate help

What about shared ownership with a housing association? I think the idea is that you buy 50% of the house and rent the other 50%, with an option to buy in future if affordable

4.45x current income is roughly what to expect from high Street banks assuming that there is affordability up to 85% LTV

Or, my dad was guarantor for my first mortgage, to enable me to borrow more than normal. But these affordability criteria ate there for a reason, and intetest rates will likely increase, so take care not to bite off more than you can chew

At NMW you could borrow 50k based on 3x salary. Chance of borrowing is improved when the deposit on top is a larger portion of the house cost.

What's the average cost of a 1/2 bed in your area and what % depost would you then have of that?

Honestly it depends on house prices in your area, %deposit v mortgage, income and affordability.

I am a fairly low income, under 19k, and am 40. I managed to get a mortgage after an inheritance came through. I had 20k to put down and got a 67k mortgage. I live on the Midlands and bought a terrace house. It needs.wprk.which I will do eventually, but ita mine and my mortgage plus bills is far less than just rent. To.rent a similar sized house id be paying over £600/month. I can't afford that plus bills. My mortgage plus bills is around £500

There isn’t enough info. Why can’t you get a mortgage, that’s not because you’re low income, unless you’re on benefits?

Do you work, how long have you been there, how much do you earn what mortgage do you require.

Have you spoken to an IFA OP?

All the different mortgage providers have affordability calculators online - they'll give you a rough figure of what they'll lend you (about 4.45 x your salary currently). Have you done this?

Sorry op, do you mean you want a mortgage more than 3 times or so your earnings? No one gets this

So are you then just saying you can’t afford to buy becayse you don’t earn enough to borrow the money you need?

It depends how low your income actually is?

Find a good broker

OP the cost of houses differ so much over the country it’s impossible to say without.

A - where you want to buy
B - your deposit
C - your income (or if you don’t want to people can work out based on NMW)

I’m sure you’ll get lots of helpful info if you can provide that info?

Essentially you can probay borrow between 4 and 5x your annual salary, depending on credit score and banks lending criteria. Add that to your deposit and that is the price range of houses you need to be looking at.

Its doable, i bought my flat on my own when i earnt £20k about 6 years ago

You can get a mortgage if you’ve got income, no debt and good credit history, can’t you?

If you’re on 15k a year, a bank won’t lend 200k as you wouldn’t be able to pay.

It’s also worth remembering that even if you can afford X in rent, when you’re the owner, you need to be able to pay for repairs on top of that and still afford the repayments when interest rates go up.

Could you see a broker?. They will go through everything with you.

Or save all the money for better times?.

@nomorename

Impossible where I live... seems crazy "i can afford to rent" but can't "afford to buy"

Well can you afford a big repairs? It's not just payment mortgage bank wants you to cover. They don't want the asset to deteriorate. It's not just that they would want to be shitty. They have to ensure you can withstand interest rate change, repairs etc.

Thanks all! I live in the south, 1 beds around my area start from £220k min. I'm on 21k and have a 35k deposit.
I've done all the calculators, I'm way out! Just wondered if there were any further ideas. An IFA will be my next port of call.

Yeah sorry you are way off affordability with your salary

Do you HAVE to buy in that area? You can't look a few miles away where prices might be lower?

Ah. X posted with @JoJoSM2

Every autumn is my time to get boiler check and every autumn there is something small wrong so close to 200 there. Last autumn my roof leaked. Few hundred there. It really counts together in the end.

@nomorename

Thanks all! I live in the south, 1 beds around my area start from £220k min. I'm on 21k and have a 35k deposit. I've done all the calculators, I'm way out! Just wondered if there were any further ideas. An IFA will be my next port of call.

50% shared ownership works with your figures.

Have you been on a mortgage calculator website yet?