Don't know if anyone can help.. (mortgages) [UK]

[KrisKitten]

but its worth a shot
Does anyone have any idea what your household income would have to be to gain a mortgage for 150,000?
With no history in borrowing money, bad or otherwise etc
Anyone have a clue?

I just want to know what we are aiming for, and as we arent there yet i would feel very silly going to a bank lol xxx

 

[Lilaala]

Well we're not home-owners yet, plus I'm in a different neck of the woods than you are, but I know when we were researching it I did gain one very useful piece of advice:

Depending on who you go with, you will be approved for more or less money. Over here RBC (Royal Bank of Canada) approved us for an entire one hundred thousand dollars LESS than a mortgage consultant found for us. Mortgage consultants look at ALL the places you can get mortgages from, and find you the best one, so I'd suggest you find a good mortgage consultant and take it from there. At the very least you'll know where you stand. Good luck!

 

[pinkflamingo]

Think generally you are looking at around 3 times your salaries. So if you have a combined salary of 50k then you could get a mortgage of 150k. You will need a deposit though, and now that will generally be a minimum of 10%, so 15k. If you can save a higher percentage for a deposit then you will get better rates of interest.
There are some 'special offers' for first time buyers which are worth shopping around for, but at the end of the day, the more money you can put down as a deposit, the better off you will be.
You'll then be looking at monthly payments of £700+

Good luck

 

[aly888]

As above,find yourself a good financial advisor.they will do all the shopping around and find the best deal for you.they also have a pretty good idea of what interest rates will be over the next 5 years so will find you one that is good for the long term and not just for the here and now!!
To be honest,you are better off finding out what mortgage you can get/afford then find a house that fits that budget,rather than finding a house then trying to get a mortgage to cover it.that way you are less likely to fall in love with a house that is gona put strain on your budget or leave you paying massive interest rates!!
As for earnings,again as above says its usually 3 or 4 times your earnings,depending on where you go.and if you can get a guarantor then that helps with a little more!!
Good luck hun.it can be stressful but worth it x

 

[Cham]

I agree with above, first thing I did was to get a mortgage adviser who could check the whole market. We said we needed XX amount and he told us how much we could afford. Whilst I do agree with what Aly88 says about getting what you can afford, we moved to an area that had what we wanted for our money, so that wasn't a problem.

We were rejected for a mortgage at first, so had to get our credit reports, which were fine. Mortgage Adviser put it through again and we were accepted in the top category for the same company - apparently, the lenders are always moving their goal posts.

 

[KrisKitten]

I know what you mean aly, its just me and DF are currently both just setting up our futures iykwim, so we want to plan
Hes starting a paid apprentiiceship as an electrician hopefully in the not too distant future and im starting a degree, and hopefully once tommys older ill be able to pull in some extra work on the side.
Eventually we'd like to have LO #2 and so ideally we want a 3 bed house, and neither of us want to be too far from our family. Especially me as i come from very big, very close family. The problem is out family live in london =/
So realistically the cheapest houses meeting all those requirements are around the 180,000 mark. Between us we already have give or take 25,000 tied up in savings etc and we're adding to that every month to try and build up a good deposit - hence why i say a mortgage for 150,000
lol, this is all for the future...im just getting so desperate for our own space and i want tommy to have his own room etc
I just want to know what we r aiming for...and if our plans are realisistic or not
Thanks so much for all ur advice xxxx

 

[aly888]

Well it definately sounds like you got your head screwed on are you looking at actually living in london?or a quick train journey away? Where I live you wouldnt consider it near London really (well,not close enough to be close to family) but I can get into st pancras in half an hour.what im trying to say is,if a train journey is an option then you could look further afield,wich could perhaps open up some options for you!!
Good for you for planning though.i cant even plan as far ahead as next week really hope it works out for you all

 

[Donna35]

I got a mortgage approved this week and it was through a mortgage adviser in an estate agents that it was done - they know the best banks/building societies to go through - for instance I thought my bank would be the best bet as my savings are there but she said no as my bank doesn't take tax credits and child benefit into account when calculating how much you can afford to pay. She said it's not done on just your wage anymore where they used to give 3/4 times your salary it's done on affordability, which I take it to mean they take into account how many of you there are, all your outgoings bills etc and total income and decide from there. What I would really recommend you do is pay off any debts/credit cards etc you have if you can before doing it as then you're in a better position both financially yourself and it looks better to them in terms of what you are paying out and have left to pay on a mortgage. Also they allow you to pay up to 10% off the total mortgage amount owing each year on top of your payments so if you can at the time this is a great idea as it will reduce your monthly payments

Definitely go to a financial adviser though as they'll get you the best deal. But don't go to more than one (ask friends etc if theyve been to one they can recommend) as they do credit checks and too many credit checks can adversely affect your credit rating (or so I was told)

 

[KrisKitten]

Wow thats really useful, i didnt know that about th credit checks - thank you
Tho neither of us have any debt, we've never had any official dealings with money other than saving lol so i think we r ok
Also v interesting that its not all based on wage?

thanks again xxxx

 

[gday2uk]

Just google 'mortgage calculator', there is even one on the BBC website. You know ehat your earnings / outgoings are so should be easy. Also haveing no credit history is not necessarily a good thing; you therefore cannot prove to the lender you are good at repaying money and can manage your debts.

 

[KrisKitten]

gday2uk i know, iv looked at the calculators thing is i dont know our earnings as this is very much planning ahead - im asking if anyone knows what your earnings would have to be to qualify for a mortgage of that size.
Like i said before i just like to have a rough idea in my head so i know what we're aiming for.
xxxx

 

[24/7]

Myself and OH qualify for a mortgage of just under £200,000 and we are on a joint salery of nearly £60,000. But thats based on the 3/4 x salary mortgage that we were offered last year and would have cost us just over £1000 per month. If it were to be based on what we could afford given our outgoings being very low we could easily afford to pay more, and have a bigger mortgage and pay it off quicker.
In the end we decided to rent for a few years to give outselves a bigger deposit to help lower the interest on a mortgage.
You sound like a lovely family, and I wish you all the luck in working out what is best for you all. xxxx

 

[KrisKitten]

 

[Vici]

We used London and Country - a whole of market fee free mortgage advisors as recommened by the martins money bloke and they were FAB (and of course free).

The bigger the deposit you have the better interest rate you can get. To give you an idea, we spoke recently to Abbey (who our current mortgage is with re. borrowing more to get a bigger house. We currently pay standard variable interest as our fixed came to an end and it was the best for us to stay on at 4.24%. We would have had a £16,000 deposit on a £160,000 house so 10% and borrowing £144,000. They would only give us a fixed at 6.6% for 5 years although if we had 15% deposit loads more options opened up. Repayments were almost £1000 a month. It doesn't help that my OH is self employed but its just an idea for you x

 

[ladyjayne]

One thing i've found when looking at mortgages is that the more children you have the more you have to earn to get the same mortgage. When we said we had no children we were offered £190,000, my OH was earning about £25,000 and as a student i was only one £6000 at a push. Now OH is on £29,000 im on £15,000 and with children were getting told a max of £170,000.
They take into account your outgoings and children are seen as a big one so best to bare that in mind, with a healthy deposit though i think you'll get offered a better deal.