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Original poster

To think I could get the mortgage ?

45 replies

Theneverendingtories · 10/08/2022 10:27

I’d like to buy my home.
its a small semi in north London and worth £385k according to zoopla sold price of an identical house on the road. It’s a very small house the bathroom is downstairs off the kitchen and it has tiny windows and is odd but has a colossal garden which we love very much . It’s a 2 minute walk to my sons school as well.
currently I have to wait about another 8 months for the last of my debts to go ‘statute barred’ and disappear from my credit file. I’ve not worked for some years but I’ve just finished a degree that allows me to become a trainee teacher and get £28k per year including location bonuses .
so currently the finances look like this :
£112k right to buy discount
£120k inheritance due from probate ( agreed , calculated by executor just tactically waiting a few months before completing the transactions)
£60k offered by ex as cash gift in lieu of child support for 5 years ( he gives me £1000 per month until now)
so totals a £292k deposit .
means I need a mortgage of £93k.

baring in mind my hideous credit history and that I’ll only just have started work after a ten year hiatus , will that mortgage be agreed? It’s a pretty massive deposit isn’t it? .

i have spent countless hours and a fortune making this place nice ( think working through the night while child sleeps doing DIY ) and I think I’d die if they ever took it away from me. I want to leave this house in a box .

I cannot stress how much the safety and security of this home means to me after a horrible unsettled life. Can I do this? Or am I dreaming?

OP posts:
AMIAMIBU · 10/08/2022 10:29

Sounds perfectly doable! I'm work at a mortgage advisers.

Go to an independent adviser.

I think you're saying your last bad debt is about to go? A lot of companies only go back 3 years.

Length of service with job not an issue either.

Good luck.

MadeForThis · 10/08/2022 10:30

You need to speak to a good mortgage broker. They will know who will offer you a mortgage. However you may need a few months of payslips.

AMIAMIBU · 10/08/2022 10:30

MadeForThis · 10/08/2022 10:30

You need to speak to a good mortgage broker. They will know who will offer you a mortgage. However you may need a few months of payslips.

You don't necessarily!

RedHelenB · 10/08/2022 10:31

Your ex would be a fool to give you that money for CM upfront and legally this isn't an option. So you'd be looking at a 153I mortgage. What is the right to buy discount?

Butterflyfluff · 10/08/2022 10:35

There are a lot of variables in that list

  • is the house actually for sale and if so what is the asking price?
  • have you got a job? Having a degree that hopefully leads to a job isn’t the same thing
  • Is the right to buy option definitely available?
  • The mortgage is still more than 3 times the potential salary, with bonuses. The bonuses would need to be demonstrated to be included
  • how are you going to cover the £1000 month you will no longer receive from your ex
A mortgage broker would be able to advise but it sounds tight to me
Original poster
Theneverendingtories · 10/08/2022 10:36

RedHelenB · 10/08/2022 10:31

Your ex would be a fool to give you that money for CM upfront and legally this isn't an option. So you'd be looking at a 153I mortgage. What is the right to buy discount?

Is it really illegal for him to do that? I didn’t know. I thought he could do what he wanted with his money . He has a vested interest in our home because his whole life is under this roof and we are extremely close so it’s something he offered to do .

OP posts:
Ponoka7 · 10/08/2022 10:40

Go to a mortgage broker and they will make it work. You can start to make initial enquiries. My DD did just that last year and did what she needed to and the advisor has just got my DD a mortgage. She only earns around £12k and has got a mortgage for £50k, she has done it with gifted equity as a deposit.

Ponoka7 · 10/08/2022 10:41

Also, she has only been in this workplace since October and is only contracted for 18 hours a week. You and your ex can make any arrangements that suit you re maintenance.

Ponoka7 · 10/08/2022 10:43

@RedHelenB, why do you think that it isn't legally an option? You can make private maintenance arrangements. As long as the cash train is accounted for, it's legal.

Original poster
Theneverendingtories · 10/08/2022 10:46

Butterflyfluff · 10/08/2022 10:35

There are a lot of variables in that list

  • is the house actually for sale and if so what is the asking price?
  • have you got a job? Having a degree that hopefully leads to a job isn’t the same thing
  • Is the right to buy option definitely available?
  • The mortgage is still more than 3 times the potential salary, with bonuses. The bonuses would need to be demonstrated to be included
  • how are you going to cover the £1000 month you will no longer receive from your ex
A mortgage broker would be able to advise but it sounds tight to me

Yes the council have to sell it to me , it’s called right to buy because they have to have a really good reason not to sell to a long term tenant . Lots of these houses have been sold recently , they are old, on large plots not suitable for elderly or disabled and expensive to maintain so I think council is quite happy to get rid of them .
£28k is what I’ve been offered to train the bonus is just because of the location so it’s included not variable . They are desperate for teachers so I have 2 degrees now but I have been offered to join a program that pays you to train and qualify so it’s guaranteed. I’ve been on universal credit / student loans and CM only for years less than £1800 a month all in for much of that , so that salary alone is more than I have coming in now. Also will have no childcare costs, I don’t run a car because I can use the tube, so outgoings are pretty low anyway.

OP posts:
TeeBee · 10/08/2022 10:46

Butterflyfluff · 10/08/2022 10:35

There are a lot of variables in that list

  • is the house actually for sale and if so what is the asking price?
  • have you got a job? Having a degree that hopefully leads to a job isn’t the same thing
  • Is the right to buy option definitely available?
  • The mortgage is still more than 3 times the potential salary, with bonuses. The bonuses would need to be demonstrated to be included
  • how are you going to cover the £1000 month you will no longer receive from your ex
A mortgage broker would be able to advise but it sounds tight to me

Mortgages are generally offered up to 4.5 times salary these days, not 3.

Original poster
Theneverendingtories · 10/08/2022 10:50

Ponoka7 · 10/08/2022 10:43

@RedHelenB, why do you think that it isn't legally an option? You can make private maintenance arrangements. As long as the cash train is accounted for, it's legal.

This is what I thought! Also I think they are happier to lend against big deposits aren’t they?

OP posts:
SusanKennedy · 10/08/2022 10:50

RedHelenB · 10/08/2022 10:31

Your ex would be a fool to give you that money for CM upfront and legally this isn't an option. So you'd be looking at a 153I mortgage. What is the right to buy discount?

Of course it's legally possible, he can gift her whatever he wants.

Op I'd be concerned about your drop in income from losing the 1k per month. I'm assuming you've been claiming some sort of tax credits that it subsidised, which will be replaced by your wages but it'll still be a drop in income

girlmom21 · 10/08/2022 10:50

A £93k mortgage is small. If you've got 3 months worth of pay slips there's no reason why not.

SleeplessInEngland · 10/08/2022 10:51

I'm surprised you can even get that in North London for 385k. Is it really far north?

Original poster
Theneverendingtories · 10/08/2022 10:53

SleeplessInEngland · 10/08/2022 10:51

I'm surprised you can even get that in North London for 385k. Is it really far north?

Yes it’s right out in the sticks really . Technically a London borough but almost not London if that makes sense . The council houses are still very reasonable .

OP posts:
Butterflyfluff · 10/08/2022 10:56

TeeBee · 10/08/2022 10:46

Mortgages are generally offered up to 4.5 times salary these days, not 3.

Show quote history

Agreed, but the OP has no job yet therefore no income history and is going to be £1000 a month down on maintenance payments

Original poster
Theneverendingtories · 10/08/2022 10:57

SusanKennedy · 10/08/2022 10:50

Of course it's legally possible, he can gift her whatever he wants.

Op I'd be concerned about your drop in income from losing the 1k per month. I'm assuming you've been claiming some sort of tax credits that it subsidised, which will be replaced by your wages but it'll still be a drop in income

Show quote history

Yes I agree it’s a bit nerve wracking as it’s tight and that salary isn’t huge , it will creep up though over the years. And now I’m in the ‘no childcare needed’ club I feel like it’s reasonably safe and doable. If I got Ill or had some other disaster in life I have people around me that would bail me out.

OP posts:
monotonousmum · 10/08/2022 11:13

Having bought my flat under right to buy, I probably wouldn't worry about having just started your job - my whole process took over a year from application to completion!

Original poster
Theneverendingtories · 10/08/2022 11:19

monotonousmum · 10/08/2022 11:13

Having bought my flat under right to buy, I probably wouldn't worry about having just started your job - my whole process took over a year from application to completion!

ah well that’s actually about right for me. I’ll have been earning a year, maybe managing to tuck a bit of money away and I find this kind of thing quite stressful as I’m a panicker so perhaps my mental health will be safer if I get used to the new job before dealing with all the stress and admin.

OP posts:
user1471457751 · 10/08/2022 11:25

Do you have a job yet? Because you won't get a mortgage being unemployed. On the child maintenance thing I think the risk for your ex is what is to stop you from taking this 60k and then submitting a claim to CMS for child support? He could easily end up paying twice.

Right to buy is an utter joke though. You have 120k in cash and are getting over a 100k discount on a house after benefitting from living in a council house. Now you can make a massive profit on a house while removing one more house from social housing.

doodlywoodlydingdong · 10/08/2022 11:31

My ex had two CCJs that were 3 years old. He night his council flat valued at £62k for £19k but had to get a mortgage for £25k as that was what was offered. His repayments are £225 a month and the provider didn't care about the CCJs as He basically had a huge deposit in the form of RTB discount to Leo the LTV low.

Itisasecret · 10/08/2022 11:34

If you’re training, you’re getting the bursary. Mortgage brokers won’t count that as salary because it’s not. Also training placements are not permanent.

Tinkywinkydinkydoo · 10/08/2022 11:35

While that would be doable now, mortgage companies are already starting to tighten the lending criteria due to the impending recession so by the time you come to applying for a mortgage you may need a larger income but it could still be possible , plus the house may have come down in value a bit by then (unlikely in London but you never know) so it may even itself out.

monotonousmum · 10/08/2022 11:39

user1471457751 · 10/08/2022 11:25

Do you have a job yet? Because you won't get a mortgage being unemployed. On the child maintenance thing I think the risk for your ex is what is to stop you from taking this 60k and then submitting a claim to CMS for child support? He could easily end up paying twice.

Right to buy is an utter joke though. You have 120k in cash and are getting over a 100k discount on a house after benefitting from living in a council house. Now you can make a massive profit on a house while removing one more house from social housing.

The responsibility for that is on the government. The money they receive when selling the house is more than enough to build another house, but they don't /won't in most cases.

The system is a mess. But I still bought my council flat, because that's what was best for myself and my family.

It's not about making a profit. The council weren't going to move me to a bigger property when I had kids (because they sold them and didn't bother building more). But buying the flat means I am now in a bigger property - albeit many years later. It was worth it.

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