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Original poster

How to get a mortgage?

43 replies

pepperrabit · 27/07/2024 14:42

Hi,

No one in my family or my friends have a mortgage.

There's a property I've been eyeing up for a while as it would be an ideal "starter". If it's still available (been on for nearly a year) I would have the 10% deposit no problem.

But how do I go about it? I don't have any debt other than council tax, I have a steady income and a full time contract. I have only just started at my new job, my previous job I was at for 5 years.

I don't have credit out other than a loqbox save account as that's supposed to boost your credit score and my credit score is 656/999.

Aware the property I'm looking at could go but made me realise I should really be thinking about this.

Any advice, etc?

Thanks!

OP posts:
Toooldtoworry · 27/07/2024 14:44

Call a broker. I'd start with London & Country as they're free but if your circumstances are too tricky try John Charcol.

paintedpumpkins · 27/07/2024 14:45

What do you mean when you say you have debt from council tax?

MoreChocPlease · 27/07/2024 14:47

Speak to a fee-free broker such as L&C. They will probably recommend that you take out a credit card, use it once a month for petrol or your grocery shop, and pay it off in full and on time. After 3-6 months it’ll really boost your credit score. Mortgage companies prefer to lend to people who have a good history of paying off credit.

Fluffycloudsfloatinginthesky · 27/07/2024 14:50

Why has it been in for a year....there may be a reason it's not been selling.

MyOtherCarisAVauxhallZafira · 27/07/2024 14:52

L&C are good, that credit score is quite low have you had other debts/defaults?
What are your fixed outgoings compared to your income? Have you done an affordability check to see roughly what you might be able to borrow?

Overthebow · 27/07/2024 14:53

Have you looked at mortgage calculators to see if you have a high enough income for the mortgage you would need?

MigGirl · 27/07/2024 14:56

Have a read here,
https://www.moneysavingexpert.com/mortgages/
There are also message boards you can ask questions. You will find people on there will more advice then on here.

cannynotsay · 27/07/2024 14:57

If you're in debt with council tax get that paid off first, it will help x

rainingsnoring · 27/07/2024 15:01

You can look at online mortgage calculators to see roughly how much you could borrow.
You usually need a few months of payslips to show proof of income so may need to wait a little while.
You can then approach a few, whole market brokers for detailed advice.

As regards the house you mention, there is obviously a reason that it hasn't sold in a whole year. Either there is something major wrong with it or, and far more likely, it is very over priced and the owners are unrealistic. You need to research your local market very carefully, over a period of time to see what sort of price would be reasonable and realistic for this, or any other house. Don't over pay at present, when the market is likely to fall further, especially not as a FTB.
You might want to have a look at movinghomewithCharlie on YouTube or X.

rainingsnoring · 27/07/2024 15:02

Not quite sure what you mean about council tax debt. Are you in arrears?

ForPearlViper · 27/07/2024 17:02

You mention you have only just started a new job? Many lenders don't like that - although I know a few employers who are prepared to be a bit economical with the truth to help the employee out on this.

I had a problem with this when I wanted to port a mortgage I'd been paying for over a decade to a new property. They were unhappy that I'd just moved jobs. It was only after a lot of fuss (by me) and the fact that I had a lot of equity (built up over c25 years of mortgage paying) that I got the mortgage ported.

A broker will have relationship with lenders and can be a great support in getting lenders to be a bit more flexible.

user1471538283 · 27/07/2024 18:14

Call London and County and see what available and find out how much you can borrow and how much you can afford to pay back each month.

Get the very best interest rate possible and try to have a repayment mortgage.

How exciting!

ByCupidStunt · 27/07/2024 18:17

Go and see a mortgage broker and see what they say. It's a couple of hours out of your life.

If they say no, they'll give a reason, which in your case will probably be because you're in arrears with your council tax and don't have a very good credit score, but you can at least then know what the problem is and start working on it.

You'll be able to borrow roughly 4 x your annual income.

Original poster
pepperrabit · 28/07/2024 10:52

Toooldtoworry · 27/07/2024 14:44

Call a broker. I'd start with London & Country as they're free but if your circumstances are too tricky try John Charcol.

Ooh, great. Thanks!

OP posts:
Original poster
pepperrabit · 28/07/2024 10:52

paintedpumpkins · 27/07/2024 14:45

What do you mean when you say you have debt from council tax?

When I was young I didn't pay it and so I'm currently paying that back.

OP posts:
Original poster
pepperrabit · 28/07/2024 10:53

MoreChocPlease · 27/07/2024 14:47

Speak to a fee-free broker such as L&C. They will probably recommend that you take out a credit card, use it once a month for petrol or your grocery shop, and pay it off in full and on time. After 3-6 months it’ll really boost your credit score. Mortgage companies prefer to lend to people who have a good history of paying off credit.

Ooh that's good, thank you!

OP posts:
Original poster
pepperrabit · 28/07/2024 10:54

Fluffycloudsfloatinginthesky · 27/07/2024 14:50

Why has it been in for a year....there may be a reason it's not been selling.

Well that's definitely on my mind as well but trying to be optomistic haha

OP posts:
Original poster
pepperrabit · 28/07/2024 10:57

MyOtherCarisAVauxhallZafira · 27/07/2024 14:52

L&C are good, that credit score is quite low have you had other debts/defaults?
What are your fixed outgoings compared to your income? Have you done an affordability check to see roughly what you might be able to borrow?

Yes, when I turned 18. I didn't know anything about credit and got myself into about 7k of debt but over the last few years I've paid it all off in full I've just not took out any further credit but going to try soon haha.

My outgoings vs my income is pretty good as I rented the cheapest flat in my area. So I have around 1.5k-2k disposable every month.

OP posts:
Original poster
pepperrabit · 28/07/2024 10:57

Overthebow · 27/07/2024 14:53

Have you looked at mortgage calculators to see if you have a high enough income for the mortgage you would need?

I read it's like 4x my salary? Which this definitely is.

OP posts:
Original poster
pepperrabit · 28/07/2024 10:57

MigGirl · 27/07/2024 14:56

Have a read here,
https://www.moneysavingexpert.com/mortgages/
There are also message boards you can ask questions. You will find people on there will more advice then on here.

Oh thank you!

OP posts:
Original poster
pepperrabit · 28/07/2024 10:58

cannynotsay · 27/07/2024 14:57

If you're in debt with council tax get that paid off first, it will help x

Thank you

OP posts:
Original poster
pepperrabit · 28/07/2024 10:59

rainingsnoring · 27/07/2024 15:01

You can look at online mortgage calculators to see roughly how much you could borrow.
You usually need a few months of payslips to show proof of income so may need to wait a little while.
You can then approach a few, whole market brokers for detailed advice.

As regards the house you mention, there is obviously a reason that it hasn't sold in a whole year. Either there is something major wrong with it or, and far more likely, it is very over priced and the owners are unrealistic. You need to research your local market very carefully, over a period of time to see what sort of price would be reasonable and realistic for this, or any other house. Don't over pay at present, when the market is likely to fall further, especially not as a FTB.
You might want to have a look at movinghomewithCharlie on YouTube or X.

Thank you! I will look at that and yes, I realised there could be something wrong with the property but remaining optimistic haha

OP posts:
Original poster
pepperrabit · 28/07/2024 10:59

rainingsnoring · 27/07/2024 15:02

Not quite sure what you mean about council tax debt. Are you in arrears?

Yeah

OP posts:
Jmaho · 28/07/2024 10:59

Firstly pay off council tax debt. This should have been paid off before you started saving for a deposit
Depending on how the debt has been registered against you and the fact that you haven't repaid it may make it difficult for you

Original poster
pepperrabit · 28/07/2024 11:00

ForPearlViper · 27/07/2024 17:02

You mention you have only just started a new job? Many lenders don't like that - although I know a few employers who are prepared to be a bit economical with the truth to help the employee out on this.

I had a problem with this when I wanted to port a mortgage I'd been paying for over a decade to a new property. They were unhappy that I'd just moved jobs. It was only after a lot of fuss (by me) and the fact that I had a lot of equity (built up over c25 years of mortgage paying) that I got the mortgage ported.

A broker will have relationship with lenders and can be a great support in getting lenders to be a bit more flexible.

Oh really? That's insane! And yeah I thought about that! I changed jobs for a big promotion, big pay rise and a secure contract! So no regrets there, even if I need to wait longer haha

OP posts:
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