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Original poster

Could we get a mortgage?

21 replies

LoveMyGirls · 22/04/2009 11:43

I'm a childminder, I don't earn that much profit is about 5k a year at the moment.

Dp works in IT earning apporx £24k a year

We have a loan of approx 10k

I've seen a house I that's ideal for 110k

Dp think we have no chance of getting a mortgage. Is he right? Is there any point seeing a mortgage advisor?

OP posts:

lottiebunny · 22/04/2009 11:52

Depends how much you have for a deposit I suppose. Going on 15% deposit which is about the minimum these days, you need around £16.5k and then the mortgage is around 4 times your DPs earnings. It is possible and not that unrealistic to get that.

Speak to the mortgage advisor, you might get good news if you can put down a reasonable deposit.

morningpaper · 22/04/2009 11:54

Agree - if you have around 20k or so for a deposit you should be fine

However, I'm guessing that you probably don't, if you have debts. I don't think anyone is offering 100% mortgages any more I'm afraid

Original poster

LoveMyGirls · 22/04/2009 11:57

We have nothing saved, we are getting married this year so all our "spare" money is going on that at the moment.

I've got an overdraught we could use but then they would take that into account wouldn't they.

The reason I want to move before the end of the year is because our eldest dd1 will be moving up to secondary school next year and I want her to be closer to school so she can walk (she keeps asking but we live too far away at the moment) also if we move it's nearer to the nursery dd2 is in and she could then go to the school attched.

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morningpaper · 22/04/2009 12:02

You will need a 10% minimum deposit with everyone as far as I know

Original poster

LoveMyGirls · 22/04/2009 12:21

Ok, thanks, next question then..

Dp and I have seperate accounts even though we have been together 7 years because he has a loan with his so says he can't move his wages to our joint account because of this and also we're better off when we do get a mortgage if we both have good banking history, my bank has a £5,000 overdraught facility which I like for if the s* hits the fan! My bank is in joint names although dp never uses the card for it and if I want money from his account he either transfers it or I go and get it.

What are we best to do, obviously we need to get the wedding over with and then save for our own house but should we get all wages paid into one account and all outgoings out of 1 bank or shall we stay as we are?

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Original poster

LoveMyGirls · 22/04/2009 13:23

What shall we do next?

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Auntylulu · 22/04/2009 13:26

find a local independent financial advisor, they will go through everything with you and see if you can get a mortgage,although with no deposit, i think you are really going to struggle to get a mortgage, and you also have the legal and removal costs too..

MollieO · 22/04/2009 13:27

Can't you reduce what you are spending on the wedding to help fund the deposit or reduce the loan?

morningpaper · 22/04/2009 13:37

yes that would make more sense

It is a bit mad to be planning a wedding when you are already in debt - you aren't really spending YOUR money

Original poster

LoveMyGirls · 22/04/2009 13:44

We've already agreed to what we're spending on the wedding now, everything is booked so we're committed to paying for it, we haven't gone mad on wedding costs, friends and family are helping out a lot and we're having a social club do, friend is doing the disco, friends singing in a band, we're just paying for the hire, food, decoration and his suits, dd's clothes, photographer (getting most basic package) and the car and my bf is even helping towards that cost. I think our total costs for it are £2,000 max.

Dp doesn't want to go and see anyone because he says its a waste of time and now after starting this thread I can see his point.

The loan is paid off monthly and I don't think we can change the amount we pay per month without inccuring a charge but may be worth finding out.

I'm just wondering what to do next as I have no idea about this sort of stuff and I want to do the best I can for my family, I'm worried if we don't buy soon the house prices will go back up and we'll never afford anything nice in a nice area and be stuck living in a rough area.

Where we are now, the house is lovely but its housing association so though the rent is good the people around here are not the best for dd1 to be mixing with but we can't keep her in all the time now she's getting older.

OP posts:

Original poster

LoveMyGirls · 22/04/2009 13:53

Thats as maybe MP but we want to be married and we want our familly and friends to witness it, I also want to thank them for standing by us and supporting us over the years and I wanted us to do it while our dd's are still young, time was passing us by there was never going to be a good time, our loan ends in 5yrs by then we'll have been together 12 years and have a mortgage so even more financial commitment, I had dd1 at 17 and met dp at 19 so getting married before children wasn't an option either. Life isn't always perfect or planned.

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Auntylulu · 22/04/2009 14:10

it's a shame he won't see anyone

there is no cost and no obligation and it sounds like you are intersted and he is not being helpful

at least an independent advisor can give you a definitive answer and information

once your loan is paid off you can start saving for a deposit?

morningpaper · 22/04/2009 14:15

why don't you just make an appointment? You can see one yourself

Original poster

LoveMyGirls · 22/04/2009 14:18

It was him who mentioned if first, I said lets use our joint account properly then he said no because of the mortgage thing but if it's goignt o be another 3 or 4 years until we can sort our finances well enough to buy a house we might as well swap it about hadn't we?

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muddleduck · 22/04/2009 14:26

Hi LMG.
I'm going to make a really obvious point here. Hope that is ok

If you want to save for a house deposit then you need to look to increasing your earnings. Your CM profits are pretty low - is that because you don't have many mindees or because you're not charging very much? Or are you restricted in the hours that you work? It seems to me that the only way you will get on the housing ladder is if you can find a way of earning some extra cash and then making sure that the extra goes towards paying off debt and working towards a deposit.

looneytune · 22/04/2009 14:37

I may be wrong but I'm guessing that LMGs is like me (I'm a CM) and that she does well with childminding but with all the expenses, on paper that's all her profit is??? This is the thing with being self-employed.....great that accounts LOOK bad when working out what tax to pay BUT when you want a mortgage etc, it doesn't look good at all yet we're actually doing better than it looks.

morningpaper · 22/04/2009 14:47

Being self-employed is a bugger!

I think that realistically you are not going to be able to get on the housing ladder with your current levels of debt and with no savings. Without some sort of windfall then I suspect this is an unrealistic hope.

sorry

MrsGokWan · 22/04/2009 16:32

Why don't you look and see if you can do a swap with your housing association house to the area you want. Our main HA has a list that they hold for all the HA's in the area of people looking to swap houses either to upsize, downsize or change of location.

Original poster

LoveMyGirls · 22/04/2009 19:44

Thanks LT yes that's right I'm pretty much full and as long as my dd2 is under 6 I won't be able to take on any more under 5's, I don't do too badly with my earnings it's just things need replacing quite often and expenses do add up so on paper my earnings are not good.

We'll have to work on paying off debts and saving I guess.

We've already applied for a transfer to a 3 bed house and we got moved to a 3 bed house in the same street which was ideal at the time tbh but that was a couple of years ago now what I want to do is move closer to the school's I want my dd's to go to but also buy a house that is big enough for my business the house I'd set my sights on (which was sstc anyway) was 3 reception rooms (so one for my family in the evenings, one playroom and 1 dining/ messy play room), 2 bathrooms, 4 bedrooms (ours, one each for my dd's and a box room for mindee's to nap in plus store the toys I rotate) and a large-ish garden. Ah well maybe in a few years

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Original poster

LoveMyGirls · 22/04/2009 20:27

I forgot about shared equity schemes though that might be worth looking into? I don't want a new house though, they are stupidly high in price for the room sizes and those 3 storey ones would be a nightmare to childmind in.

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MrsGokWan · 22/04/2009 23:59

Also pop over to the Debt Free Wanabe board on MSE and post up your SOA. The folks there will check you are maximising everything and help you to find ways of paying off the debt quicker so you can start saving for that deposit. Lenders are looking for between 10 and 20% deposit at the moment in the current climate.

DFW

SOAtemplate Format it to MSE and then copy and paste it into a thread on there.

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