Does somebody on minimum wage stand any chance of getting a mortgage?

[BoltonDoowar]

Asking on behalf of a family friend’s daughter.

Single income, no kids. Currently lives with parents with very little outgoings and saves almost all of her income. Has a £10k deposit and makes £1000 a month.

She is only looking at shared ownership of 25% as that’s all she reckons she can get a mortgage on. Mortgage would be in the range of £35k-£50k.

Is it doable?

X ththm
Mku

Sorry sausage fingers . What I meant is she really needs to see a mortgage advisor who’d help source one for her.

Well, it depends where she wants to live. You can get about 5 x your salary with a decent deposit, and there are houses in this country for 60k (if you want to live in the north east)

In fact scrub that, I've just checked rightmove and in Hartlepool there are houses at 30k upwards.

Where is she in the country and does she have to stay there? Can she get a better job?

There are online calculators that answer this question. You put in your deposit and income and it tells you what mortgages you qualify for.

Whether or not she needs to go shared ownership or can go for a standard property would depend on prices where she's looking to buy.

She might be better waiting a year or two and can probably double her deposit in that time. She should also put some of her money into a LISA to get the tax free bonus.

Lancashire. I’d say a terraced house in their specific area would be around £80k for a 2 bed mid terrace.

Also just feel I should say I’m not asking to be snooty or ‘I told you so’, I really hope she manages it. I’m just genuinely curious because the way the media goes on about the property market etc I thought you had to be earning £30k minimum no matter what!

She is only looking at shared ownership of 25% as that’s all she reckons she can get a mortgage on. Mortgage would be in the range of £35k-£50k

But she'd need to pay rent on the other 75% but probably couldn't afford that plus bills, food etc. Hence why this is probably only an option if she is planning to live somewhere with lower property prices.

She can probably get up to 5X her salary. At min wage that’s £17375 x 5 = £86872 + £10k deposit. Would buy you my house.

I’m just genuinely curious because the way the media goes on about the property market etc I thought you had to be earning £30k minimum no matter what

Because the media discounts a lot of the areas where property prices are affordable as automatically undesirable, which isn't always the case. Plus 'person saves up deposit and gets mortgage in a couple of years' doesn't sell papers does it?

She needs to work full time then should be doable with a decent deposit. Full time minimum wage is £1300 a month (based on 35 hours, obviously more if longer week)

I'm in Lancashire and have just got a mortgage on a variable income of 18k-24k a year plus I've got defaults and debt

F

I agree with the opinion thst its all about the deposit.

I got a mortgage for 80k on a wage just shy of £20k (on a 5% deposit too, but it was 2018!)

I’d get a second job if single, will help boost the mortgage and deposit.

Get a terrace rather than shared ownership.
If things get tight she could get a lodger or move back with mum and dad and let it out.

look in a cheaper area for a 2 bed terrace
some areas you can purchase for £70k so £60k mortgage

but as others have said getting a second job to add to the deposit and increase your income for mortgage application would help

the repayments on a £60k repayment mortgage at 4% over 20 years would be £363 per month

thats probably cheaper repayments than a shared ownership with rent