Mortgages

[megwitchandmogcat]

So I am looking buy my first house and just after any advice anyone has.

I earn £35,500 and the houses around my area start at about £200k (there is one up at the moment for £210 but it's done up ok so I'm waiting round for one that needs a bit of work so I can get it a cheaper.

I have saved £2500 deposit, I have no debt at all. My credit report is ok. 1 missed water bill 2 years ago and they put a default on my file but since then paid everything on-time and my credit score is just on the border of fair and good.

I am a single parent with 3dc and realistically am I going to get a mortgage for £175,000. It's 5 times my salary and most mortgages I look at aren't keen on the full 5 times. I know me having 3 dependents is also a negative in their eyes.

I don't want to move from the area in which I live I know I can buy cheaper elsewhere but my work and children's school are all within 2 miles and we love where we live.

Stupidly my mortgage repayments will work out less than I play in rent by a couple of hundred so I know I can afford this. (House was rented when I was with exh so we rented on a higher combined salary).

Has anyone else been in a similar position have any advice or know what mortgage company I could look at?

To put it into context for you, myself and dp could borrow up to £200k ish with an income of around £50k between us, one child and no childcare costs. I think you will struggle to borrow £175k on your own with three children. It isn't about income multiples anymore. Your outgoings as a whole are looked at and stress tested in case there is a sharp rate increase. Any benefits you get will be taken into consideration, either in full or half of them, but if they are child related then they will also consider affordability when your children are grown ups.

Thank you @delilahbucket I thought i was looking a bit high.

I meant £25,000 deposit not £2500
Might have to keep saving and get a bigger deposit and see if that helps.

I agree, I highly doubt that you'll get anywhere near that - which makes zero sense as your rent is higher than current mortgage rates.

I'm a single parent and exP is still on the mortgage as I can't remortgage into my name as I dont earn enough. £200k left on the mortgage with 50k equity. I earn 30k. They said I can only borrow 100k....

Why not look at a mortgage calculator? The Santander one is pretty comprehensive as it takes into consideration dependants. I put your details in and based on the info you put above, assuming you have no other income, you don't pay for childcare and you have no credit commitments, you could borrow £151k ish.

Don’t forget you’ll need some money for solicitors and fees etc. You’ll be below stamp duty so at least you don’t have to worry about that.

Also I know it's a small thing but the house you saw with asking price 210, that's only an asking price, and depending on circumstances you can get quite a substantial discount.
Agreed with the other expenses, solicitor will be 500, survey the same again, searches a couple of hundred and there's anyways another small thing like covenants or something. Also something will come up on the survey and you'll have to negotiate whether the seller pays.
Another thing is you can get guarantor mortgages where only you are on the mortgage but a parent or sibling etc can be on to guarantee the mortgage if you don't pay.

Thank you so much for your replies. Given me a few things to think about.
I think I'll make an appointment with the bank and have a chat with them and get them to look through my accounts and see if they can give me any advice about mortgages and where I stand.

I have been offered financial help by a wealthy family member if I need it, they will gift me the cash difference between what I can borrow and the cost of a house. I'm just reluctant to accept as they are elderly and I don't want other family members to think I'm taking advantage. I just really wanted to stand on my own two feet and do this.

Going to see how how much I can do on my own and I do appreciate you advice especially regarding extra costs.