how realistic is my mortgage dream.

[NCISGibbs]

I will be 39 when I am ready to buy I hope.
I am looking at properties around £120,000.
I will have a £25,000 deposit.
But, I am a single mum and I will be just 6 years clear of bankruptcy when I apply from my messy divorce.
Is this possible or is this a completely redonculous dream?
I work full time as a band 5 nurse so hoping to be on £26,000 PA
Any tips and advice to be of optimal lending stature when I apply??

You are in an excellent position! Payments would be around £400-£450 pcm (I’ve just done a Google search LOL). 25 year mortgage. Go for it!

My current rent is £500 per month so thats pretty on par.
I just need to plough on saving every penny the now.

I was in the same position as you a couple of years ago but on a bit less money.

I would really recommend getting a good mortgage advisor as mine became my absolute saviour who fought my corner! He also made sure I got a mortgage with a company who took into consideration tax credits and maintenance payments.

Make sure you have money saved for solicitor fees, survey, moving costs etc. Good luck!

If you set aside £5k for legal costs and other odds, you will need a £100k mortgage. Using Nationwide as a yardstick, a 5 year fixed rate means monthly payments of £465 (at 2.84%). This is a capital repayment mortgage which is the norm. Interest only is not good for long term home purchases. Your net salary will be £1,780 pcm so that leaves you with £1,315 pcm spare to start with and as your income rises for the first 5 years you will have increasing headroom. You could go for a longer fixed period - eg 10 years if you are likely to stay there.

One thing to be aware of is that these days lenders look at your lifestyle and domestic position to decide if you are a good credit risk. If you spend on frivolous things like the lottery, gaming sites, lots of take-aways and taxis, you will be downgraded. If you can, spend the time until then cutting back on discretionary spending so you present your self as a solid prudent saver.

Thanks @PantherPantherus
I have been running my bank account like clockwork.
Apart from food, petrol, clothing, after school clubs and running costs for house and car, I have balanced transferred the rest of my salary into my savings account.
I have a LISA with skip ton and my savings is with Nationwide. the mortgage advisor said that skipton and nationwide are the most likely to lend to a previous bankrupt so by having accounts with them that are consistently growing it will look more favourable to them.
I'm on track to buy in 18 ish months so will apply for my MIP then and see what happens.
Im anxious but incredibly excited all at the same time.

my aim after buying is to consistently over pay to reduce my term and keep savings running alongside the mortgage so when I get to end of the fixed rate term I can bung another chunk off it I want to. I want to aim to be mortgage free in 15 years or less

You will probably always have to declare your bankruptcy, even when it has dropped off your credit file, but you should probably be able to get standard rates or not far off.

Your affordability and deposit looks good, and your income should be secure as a nurse.

One thing to make sure your credit file is tip top and at least a year or two before you plan to apply, get a credit card - look on Moneysavingexpert for details of those who will lend to people who've had money problems in the past or try your own bank and use it for a bit of your normal spending each month (eg a tank of petrol) and pay it off in full every month by direct debit as this will show that you can use credit responsibly.

I'm not clued up on this as my Lisa is for when in old, but I understand people have had issues with the lisa. I think you might not be able to get the money out until AFTER the sale has gone through, so you can't use it as a house deposit. Even though that is what it is marketed as being for. Check on this before you proceed.

@Love51
OMG I hope thats not the case as £18,000 will be in mine by the time I actually buy.
I won't be able to complete if this is the case. I was under the impression that the money is released to your solicitor once an offer is accepted and you are exchanging.

It can be used for deposit - don't worry. I did this about two months ago. People mix up the help to buy ISAs and lifetime ISAs. Not sure exactly of any issue with help to buys but you definitely can use LISAs for deposit.

Yes I had mixed them up, flipper. Sorry for scaremongering!