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Original poster

What are the chances of us getting a Mortgage?

31 replies

Pollyputthekettleon45 · 14/12/2017 15:06

I have inherited a house. It's run down and worth round £80k.

We will clear our debt and use it for a few other bits.

We would like to put a big chunk down on a house, roughly around £50k. DH works and I don't . We have 2 dds. We will have zero debt.

What are the chances of us getting a mortgage for roughly £100k? If not a bit more.
DH brings home roughly £1k a month.
Would it be likley? Thank you for reading Grin

OP posts:
Christmascheerful · 14/12/2017 15:11

At the moment with economic climate I'm going to say annual income of 12k- mortgage of £100k =over 8x (!!!!) Annual salary!! Your lucky to get 4/5x annual salary (I believe) these days. Also think of repayments... If you are paying back capital and interest how much do you think that would be per month...factor in increase in interest rates forecast.

Just for comparison our (current) mortgage is around £100k 22 years left to pay it off and we pay £500 per month could you manage that?

gunsandbanjos · 14/12/2017 15:13

I’d say slim to none on what your husband earns.

mummyhaschangedhername · 14/12/2017 15:18

I assume you get some sort of tax credits and child benefit to make up on that money? How much is that a month? Some companies will take those into consideration.

JourneyToThePlacentaOfTheEarth · 14/12/2017 15:20

Brings home 1k after tax I presume. What's his annual salary?

MadeForThis · 14/12/2017 15:21

Are you looking for a mortgage of £50k and using £50k for a deposit?

A mortgage advisor will be able to look at the companies that would consider you and what rates would be offered.

Christmascheerful · 14/12/2017 15:22

journey with the personal tax allowance being around 11200 it's unlikely he earn's much more than 12/13k per annum

MyDcAreMarvel · 14/12/2017 15:23

Phone London and Country they are great and don't charge a fee. Nationwide counts tax credits and child benefit as income as do some other banks.
I think you will be ok with those included.

Ecureuil · 14/12/2017 15:23

Very very slim. I think the maximum they lend is 4-5 times annual salary so 100k would be out of reach at the moment.

pestov · 14/12/2017 15:32

Everyone can get a mortgage. Whether it will be enough for what you want (no max 5 x income with no dependants) or affordable (another no 1 £100k over 25 years is at least £400 a month) and with favourable terms (good rate/LTV will be based on your credit history) is another matter entirely.

pestov · 14/12/2017 15:33

And remember that because you have inherited you are not allowed to be classed as a first time buyer ever again, even through you haven't bought anything!

wowbutter · 14/12/2017 15:35

I just got a mortgage of 163000 on 27k... what's that x my salary a year?
It's worth trying...

Original poster
Pollyputthekettleon45 · 14/12/2017 15:39

Yes we get Child tax credits.
The plan was for me to go back to work Autumn 2016 but life doesn't always go smoothly and I ended up being a career for my Dad and then after he passed, caring for my Nan who passed a few months ago.

And here we are now.
I worded that all wrong, the houses we are looking at are roughly £100k so we would like a mortgage of £50k-£60k as we have £50k deposit and another £10k for fees and whatever else crops up.

This is all ideas at the moment. We have had alot on our plate so want to see different paths we could go down or need to go down. We did have an appointment at the bank and he seemed confident we would be able to get one which we was a bit Confused but just wanted to ask on here.

OP posts:
Ecureuil · 14/12/2017 15:40

That’s different then... you should be ok getting 50k.

RockinRobinTweets · 14/12/2017 15:41

Do you get child benefit? Using the intermediary calculator, if you do and if you put £50k down as a deposit, they'll lend you £61k over 35 years. It depends on how old you are.

RockinRobinTweets · 14/12/2017 15:41

Sorry, link to calculator

www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

Original poster
Pollyputthekettleon45 · 14/12/2017 15:41

We was told we would be classed as first time buyers as we have never had a mortgage before.

OP posts:
mummyhaschangedhername · 14/12/2017 16:06

Go speak with a mortgage advisor, with the tax credits and only wanting £50k then you should be able to acquire a mortgage. But your best advice is from a mortgage advisor. They can also advise how to make you look best to the mortgage company.

JoJoSM2 · 14/12/2017 16:47

Couldn't you just move into the house you inherited? You'd be living mortgage or rent free so you could crack on with paying off your debts.

I can't see that you'd get any mortgage as 1k for a family of 4 makes things very tight.

BarbaraofSevillle · 14/12/2017 18:35

Are you talking about selling the inherited house and using the money to buy another one?

Is there any chance that your DH can earn more, or you can work now, maybe while he is at home to look after the DCs. £12k pa isn't even full time NMW assuming that he's age 25+.

Would shared ownership or lifetime ISAs or help to buy ISAs/help to buy schemes be of any use?

Original poster
Pollyputthekettleon45 · 14/12/2017 19:22

The house we have inherited is in such bad condition we would need a remortgage. Which due to our debt, we arent eligible for.
The bank has advised that having zero debt and a large deposit will be in out favour.

I think I have worked Dhs wages out wrong as he picked up £20k last year Xmas Blush and earns above NMW. It's been a long day Xmas Blush and my brain is mush.

I might attempt the calculater when I feel better! Thank you for all your help.Xmas Grin

OP posts:
crisscrosscranky · 14/12/2017 19:27

Could you sell the property, clear your debt and put deposit in savings for six months to a year while you get a job?

I would imagine lenders would consider you high risk as you've relied on an inheritance to clear your debt - you're unlikely to get such a large inheritance again. Showing good account management, plus a second income, will make the chances of a mortgage with a good rate better.

debbs77 · 14/12/2017 19:27

I just got a mortgage as a single mum with low income and tax credits. It's a higher rate for two years but totally worth it!

I went through a broker xx

19lottie82 · 17/12/2017 10:26

No chance of getting a 100k mortgage on 1k pcm take home.
Max is 5x annual salary so you might get £60k?

Could you even afford a 100k mortgage?

Your husband needs to work more or get a higher paid job. As pointed out he isn’t even earning NMW if he’s in a Ft job.

19lottie82 · 17/12/2017 10:28

Sorry OP just RTTF!
Mortgage of 100k should be doable on £20k, it depends what other financial commitments you have tho. I’m guessing if you don’t work then you won’t have childcare which is a bonus, as is no debt.

VacantExpression · 22/12/2017 11:57

Definitely worth seeing a local independent adviser face to face who can talk through the whole process. Make sure you find one that doesn't charge a fee!

Also in the interim make sure your credit reports are as clean as possible, debt isn't a problem in itself but make sure you are making prompt payments etc, even if you will clear the debt with the mortgage credit history is vital.