Mortgages?

[toffee87]

Hello!

OH and I are going to start saving for a house in a couple of months. I'll be on £16,000 in a few months and he's on about £20,000 a year. I know mortgages are possible for those considered on low incomes, but can any one recommend any companies/banks?

We would like a new home, but we'll probably need to be picky on the area we live in and so they are limited in specific areas. They do have good schemes though (own 100% and pay 80%).

Is it possible to get a mortgage for say a £170,000 property with a £10,000 deposit and the income we have? Only ask as if we were to buy a pre-owned home that's the sort of price of house we'd love, although I do accept it could be way too optimistic.

Thanks,

Broody xxx

 

[Boony]

At the minute most places are asking for at least 25% deposit but they are starting to bring back 90% mortgages in which case you would need at least £17,000.

Me and hubby are currently trying to reduce our debt so we can save for a house but we are looking to save 50,000 so we can have a smaller mortgage when he leave the RAF

 

[Mindy_mini]

I'll be honest you'll struggle to get a mortgage for that kind of value as you are asking for about 4.75 your joint income.

and as Boony said, most companies want 25% deposite at the moment even if you could get an offer from a company who would be prepared to lend 90% of the property value, you'd struggle to get it based on your income.

Plus I beg beg beg you to consider how much you borrow. Over stretching on the mortgage is the worst thing you can do financially.

 

[toffee87]

Thanks! We wouldn't do it unless we could meet the monthly payments. According to most mortgage calculaters we could borrow £150,000. That would get an okay house round this area.

 

[Boony]

But to get a house for £150,000 you would need a 25% deposit which would be £35,000

 

[toffee87]

Well that all depends on the scheme, if we were only required to give a 10% deposit we wouldn't. I think we'll keep our eyes open for the new home schemes.

 

[Scally]

I have just got a mortgage through northern rock, and they are asking for 15 percent deposit x

 

[morayo]

my sister in law just got a mortgage with natwest and their asking for 10% deposit.

 

[aly888]

Have you heard of the HomeBuy Direct scheme? Basically, the government will pay up to 30% of the value of the house and you get a mortgage for the remainder. In most cases, that 30% is going to cover the cost of your deposit and it keeps your mortgage re-payments down. You keep full entitlement of your house and you are free to put it back on the open market whenever you want.

It's basically a loan, that is free for 5 years. If/when you come to sell the house, the government gets it's £££ back that it originally put in, plus 30% of whatever profit you may make on it. If the house sells for less than you paid, the government only take 30% of whatever it sells for (ie, losing money themselves).

It is aimed at first-time buyers, but not limited to them! I'm pretty sure it's a national thing. The only catch is you have to go through certain people and it's only applicable on certain houses (and I think the majority of them are new builds, although not all of them)

 

[toffee87]

I have indeed, that's the sort of scheme we're after. There are houses being built near us, where you get a 80% mortgage and the building company lends the remainder. You pay it back within 10 years or at resale which ever is sooner. It means we'd have a mortgage of say £130,000 and a loan of £30,000. My friend bought one last year, she says if you are worried about the 20%, you can remortgage at the end of the ten years and pay it back that way.

We're gonna enquire, but I think they'll tell us to go lol.