Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

How likely we'd get a mortgage?

21 replies

jemjabella · 20/08/2010 15:15

OK, I wasn't sure if this was the right section so apologies in advance if this should go somewhere else...

My partner and I are privately renting. Have done for about 5 years (spending a ludicrous amount on rent in that time!) Currently paying out £545 p/m rent.

Anyway, I'm keen that we try and buy somewhere, but my OH is a bloody big cynic and things no mortgage company would touch us with a barge pole because we're relatively low earners. Wondered if anyone here would be able to advise which one of us is more likely to be right?

Joint income of about £28k p/y (not including tax credits etc). One child. No debts (no credit cards or hire purchase etc either). No history of bad credit.

Would be looking at properties in £120-140,000 area, with a deposit of about £30k.

Any thoughts/advice? TIA.

OP posts:
Original poster
jemjabella · 20/08/2010 15:16

That should have been "thinks no mortgage company would touch us". Arse.

OP posts:
rainbowinthesky · 20/08/2010 15:16

What could you buy for that?

Original poster
jemjabella · 20/08/2010 15:20

2-3 bed semi in this area.

OP posts:
LostArt · 20/08/2010 15:26

Try the halifax website - it has a mortgage calculator on there. I tried to link, but it didn't work. I bet you would get a mortgage. Smile

Original poster
jemjabella · 20/08/2010 15:33

Have done a variety of mortgage calculators with varied success - TBH I don't know what I want yet (tracker, variable, all that crap!) so am not sure if I'm putting in the right things.

Guess I'll have to find an independent mortgage expert?

OP posts:
mamaloco · 20/08/2010 15:35

why do you want to buy?

Original poster
jemjabella · 20/08/2010 15:37

So I don't have to ask permission to do something in my own home, so we don't have to move every time landlord wants to up the rent, so we have something worth some money to our name in future.

OP posts:
HaveToWearHeels · 20/08/2010 15:44

I would go and see a good independant advisor, I have a good one but looking at what you can get for 120-140k you are not in my area ! Don't go and see one linked to a building society as they will only sell you their products.

Original poster
jemjabella · 20/08/2010 15:46

OK, thanks all. :)

OP posts:
mamaloco · 20/08/2010 16:05

Your reasons are how FIL and stepMIL conviced us to buy. It was a huge mistake, and the cost you have are much more than renting and moving... Same kind of budget and prices. But if you are sure that you won't move again and won't lost any jobs...
It won't hurt to have a look anyway.
Go for less than they are willing to lend you though so you have a cushion.

mamaloco · 20/08/2010 16:05

good luck

Fiddledee · 20/08/2010 16:07

It has recently been reported that going direct to banks/building societies actually better than an independent mortgage broker. Most independent mortgage brokers will advise a fixed rate for 2/3 years irrespective of your circumstances IME, as they will get more commission when you refinance in 2/3 years time.

You need to read up on the internet about mortgages (Martin Lewis's money saving expert is good). There is no reason you won't get one if you have a reasonable deposit.

OH may have other reasons for not wanting a mortgage though!

Original poster
jemjabella · 20/08/2010 17:46

Thanks Fiddledee.

OH may have other reasons for not wanting a mortgage though!

Yeah, that had crossed my mind.

OP posts:
noddyholder · 20/08/2010 21:35

You would def get a mortgage with those criteria.Find a no fee IFA where the mortgage co pays them not you HTH

Elllie · 20/08/2010 22:51

The estate agents often have a free IFA in their office that would give you an idea.

mamatomany · 20/08/2010 23:34

Take out MPI mortgage protection insurance, our mortgage advisor forgot when we asked her, I've never regretted anything so much in my life. That's my advice if you can afford a repayment mortgage with insurance go for it.
And haggle, the asking price is not the price you should be paying at the moment, you want at least 10% off.

Fiddledee · 21/08/2010 08:10

Mortgage protection insurance is not worth it for most people (so many exclusions for the price), keeping a nest egg of money is (if you get made unemployed), a large deposit and not overmortgaging yourself. Also if you are unemployed the government will pay the interest on the mortgage for a certain period anyway.

Original poster
jemjabella · 21/08/2010 08:33

Thanks all, you've given me tons to go on.

Step 1 now is convincing the OH Grin

OP posts:
DaisySteiner · 21/08/2010 09:26

I would really recommend London and Country - they found us a very good deal a few years ago before interest rates plummeted. It saved us thousands.

mamatomany · 21/08/2010 12:09

Also if you are unemployed the government will pay the interest on the mortgage for a certain period anyway.

At the moment you really think that won't stop soon when every other benefit is being stopped/capped.
2 years seems like a really long time but it isn't when you need £50k plus just to break even.

LibertyGibbet · 21/08/2010 12:15

We've just had a mortgage approved. We've been renting for 6 years. I don't work, am a SAHM (but going back to work next year) so all done on dh's salary alone. He earns around 27k.

We have had an offer accepted on a house and hope to be in within 6 weeks. Mortgage repayments are a bit less than our rent atm (we already have life assurance, wills etc).

The deposit you have will help quite a lot as the better your deposit, the better your deal.

As a first time buyer, Skipton and Nationwide are very good indeed but I'd see an IFA and look at your options.

You're in a v good position I think.

New posts on this thread. Refresh page