Cost of living, what are we meant to do???

[Rubylu]

So I have a 6 month old baby, I work full time earn a decent wage for my age of 33k a year at 22.

My partner and I were looking to buy a house this time last year and my mortgage advisor told me I could lend up to 145k on my own, my partner can’t be put on the mortgage due to not long being self employed he also has some debts etc.

Fast forward to now a house has come up in our area for 165k we live near Birmingham so it’s rare for a decent house to be this price as most 3 bed semis round here are atleast 220k however the seller wants a quick sale due to family dying and multiple surveys have been done with no issues.

Because I’ve now had a baby apparently I can only lend 125k? I have a 30k deposit ready. The seller won’t take any less than 165k and apparently my mortgage advisor simply can’t get me any more.
What I struggle to understand is how!!! I take home £2250 a month. The mortgage payments would be roughly £650 a month, that would leave me with £1600 our other bills are about £600 so I would be left with a disposable income of £1000 a month. Now I get we’ve had a baby but he doesn’t cost me a grand a month!!!!! We also get child benefit for him and that covers alot of his needs I spend no more than £100 a month of my own money on him…

I have no car payments no debt etc.
The council won’t consider us because we’d be in too low of a band because of my earnings, we can’t buy even though I have a decent deposit and a decent wage…
If we wanted to rent a small house in this area that would be somewhat average it would cost about £1200 a month. We were renting a tiny flat for £800 a month and have moved back in with my parents in order to buy a house, even though I now apparently can’t.
What do they actually expect people to do😳😳😳

Any advice welcome and would also like to know if anyone else is in a similar situation

Can your partner get a 10k loan?
It won't affect the mortgage if he's not going on it although you will.have to have a conversation about where that leaves him if you were to seperate

I would say a 22 year old earning £33k with a £30k deposit, with a baby and no child are costs buying a house on their own is quite a niche scenario.

Family providing full time childcare is a big commitment!

The average lending limit is 4.5 salary less costs for dependants. This isn’t going to change anytime soon. You need to buy a smaller property now or wait until you can get a joint mortgage.

Your partner has debts and an unreliable, unstable and untested source of income. That has never been attractive to mortgage lenders.

Have you looked into mortgages yourself? I wouldn't rely on someone else to do that for me. Phone Santander and chat it through with them. They were really good with us when a mortgage advisor was quoting us high rates. Or shop around by looking at bank websites. Mortgage advisors don't always find the best deal - despite what they say!

That’s fraud.

The child maintenance would be a give away that he was a dependant.

Why not just buy a cheaper house , why do you need 3 bedrooms , get a 2 bed to get you started .

Op you said this is a 3 bed semi you’re trying to buy. Most people wouldn’t expect to get that at the age of 22 with a baby. How much would a 2 bed terrace or a 2 bed flat cost? Buy what you can afford.

You are correct. I messed that final sentence up, it should have been with the top paragraph!!

He’d be very stupid to do that given he’s not going to be on the mortgage or the deeds!

The bank assume you have to pay for childcare - and in reality you might have to.

Just apply with the lender directly and omit that you have a child?

I've owned a variety of houses for 40 years and never had a roof cave in! The only time I had a boiler replaced was when we extended the house and needed a bigger one. We have had gutters cleaned (£60 by the window cleaner) and the boiler serviced. But that's about it.

Maybe they are assuming you will be paying for nursery, it is definitely taken into account. We had two young children when we applied which we weren't paying nursery fees for but we had to prove it with several months worth of bank statements. You might have better luck in a couple of years when you have proof.

Edit to say I think not mentioning your child might be fraud? We were definitely asked very specific questions about number of children and child care costs etc

I'm sorry but if you're earning 33k at 22 and don't know the difference between borrowing and lending then I would love your job. You borrow, the bank lends. Sorry but it's basic grammar.

Family provided child care is notoriously fickle and care for a 1yo can easily be 1.5k a month, if not more. Making your budget so tight that you can’t afford to pay for child care is foolhardy and a mortgage provider is doing the right thing by declining your application.

"Free childcare" from family and friends isn't always going to be there. The banks know this. I've seen someone lose a parent and had to put their child in nursery. Life's got a way of throwing curve balls at you. Your parenter needs to change his job to employed for a while and things will looo better for you. Good luck op

But the mortgage advisors don't know that.

And they don't actually care who looks after him, but hey presume that some childcare will be paid for, and factor that in when you have a child and apply for a mortgage.

Yes, I noticed that when the OP said: ...."my mortgage advisor told me I could lend up to 145k on my own"

I thought No, you can borrow up to 145k.

They're the ones lending! 😂

Ok ok roof cave in was bit much, but cgeap houses can come with plethora of smaller or bigger issues. I know. I had one. While roof didn't cave in, roofer had to do some patching, boiler was old and needed change (it was a cheap house so old), this this and that needed changing, etc.
If you in 40 years of owning only needed gutters cleaned and boiler serviced and one replacement due to extension, good on you. Not a case for anyone I know, friends, or family.
Banks want the clients to be able to take care of the property. It's asset they loan against.

Either way, times of irresponsible lending are over. For a good reason.

They should do.

The problem is they have to stress test the mortgage. I would suggest your partner sorts his debts put ASAP and gets a job with 3 months worth of payslips. Then try again.

The bank won't rely on that. Your family could change their mind any minute, or you could, or they could die.

Yes I agree. I think you'll have to look at a 2 bed house for a start OP. I also don't think this is a cost of living thing.

I don’t think this is a cost of living thing either. When we bought our first home twenty years ago at a similar age we were both earning a good amount for our age but between us we could still only buy a two bed attic flat! My parents 50 years ago also started in a tiny flat. I think that unless you have a lot of help from parents most people have to buy small flats/houses to start with rather than 3 bed houses.