Lord Geordie Posted August 20, 2016 Report Share Posted August 20, 2016 Well, popped in to see the bank now I have a contract of worth from work! A little perplexed to be told NO, on the grounds I don't earn £15k+ a year I am paying around £400 a month now in rent! Now I have managed to pay that without missing a single payment since I moved in! I was managing on 16 hours a week! It was close, but so managed! Now I am on 30 hours minimum and earning £11k+ per year! Even though I can afford a rent! I can NOT get a mortgage that would be LESS than rent in the long term? Crazy! I am now going to do some research online, and see if I can find a lender who does not have a minimum income level. Still hopeful I can find one! If not I found a nice caravan Quote Link to comment Share on other sites More sharing options...
AVB Posted August 20, 2016 Report Share Posted August 20, 2016 Unfortunately it is all relative to the value of the property you aim to buy, the amount of deposit you have and, therefore, how much you are hoping to borrow. That then dictates how much you need to earn to be able to 'afford' the repayments. You also need to factor in what would happen if interest rates rose. Unfortunately £11K/year isn't going to get you a big mortgage. Quote Link to comment Share on other sites More sharing options...
bullet1747 Posted August 20, 2016 Report Share Posted August 20, 2016 Well, popped in to see the bank now I have a contract of worth from work! A little perplexed to be told NO, on the grounds I don't earn £15k+ a year I am paying around £400 a month now in rent! Now I have managed to pay that without missing a single payment since I moved in! I was managing on 16 hours a week! It was close, but so managed! Now I am on 30 hours minimum and earning £11k+ per year! Even though I can afford a rent! I can NOT get a mortgage that would be LESS than rent in the long term? Crazy! I am now going to do some research online, and see if I can find a lender who does not have a minimum income level. Still hopeful I can find one! If not I found a nice caravan feel for you just starting out , been there and got tee shirt , I payed mine off three years back best thing I've done hope you get sorted Quote Link to comment Share on other sites More sharing options...
scobydog Posted August 20, 2016 Report Share Posted August 20, 2016 Hi LG, try the Coventry building society, I don't think they have a minimum salary level it is more about your outgoings to incomings and how they balance out over a monthly period. All the best with it. S Quote Link to comment Share on other sites More sharing options...
BrowningB525 Posted August 20, 2016 Report Share Posted August 20, 2016 The problem you'll encounter is that most mortgage companies will only lend you a multiple of your salary. Me and my wife were offered 4.75 times our combined salary by one lender. Do you have much of a deposit? Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted August 20, 2016 Report Share Posted August 20, 2016 Hi LG, try the Coventry building society, I don't think they have a minimum salary level it is more about your outgoings to incomings and how they balance out over a monthly period. All the best with it. S Be very surprised if that is the case. My brother works for a broker and said its about 4 times your salary MINUS expenses. It used to be just times your salary but rules have tightened up, they have to be able to say you can 100% afford it. Sorry to hear that Geordie, but ATLEAST at the moment your on the up glad to hear work is going well! Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted August 20, 2016 Report Share Posted August 20, 2016 £11k/ year will not get much of a mortgage - basic 3 beds down here are around £15k deposit alone. You could try the government schemes - there's 2 of them I believe - might be an option or maybe an interest only? How much is the property? Quote Link to comment Share on other sites More sharing options...
loriusgarrulus Posted August 20, 2016 Report Share Posted August 20, 2016 Have you looked at properties with a shared ownership. Quote Link to comment Share on other sites More sharing options...
foxnet22 Posted August 20, 2016 Report Share Posted August 20, 2016 Got mine with Skipton building society give them a call best of luck . Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted August 20, 2016 Author Report Share Posted August 20, 2016 (edited) I need to borrow around 45 -50k and with the discount, was told I shouldn't need a deposit. The lenders claim it's low risk as if I slip up! They get a 30k profit from selling the property at market price apparently? Either way I am not going to let it get to me! I have my health, my Son and I am managing a lot better now Edited August 20, 2016 by Lord Geordie Quote Link to comment Share on other sites More sharing options...
GingerCat Posted August 20, 2016 Report Share Posted August 20, 2016 Does the council have a help to buy scheme. Feel your pain though mate. Mortgages are not as free and easy as they once were and the landlords have loaded rent accordingly. Quote Link to comment Share on other sites More sharing options...
Scully Posted August 20, 2016 Report Share Posted August 20, 2016 (edited) I think your best option would be a 'help to buy scheme'. I feel for you, and anyone struggling to meet such commitments; I really do. I am now mortgage free but there were many sleepless nights along the way. I was once told by a bank with whom I wanted to change my mortgage to ( after she had looked at my books ) that I couldn't afford to repay on their terms and she struggled to see how I was paying the one I had, despite me never having missed a payment at any time. If you do get sorted, and you can afford it, it is worth paying into a pension as at some time in the future you may be able to release 15% or so towards paying off your mortgage some time in the future, depending on how old you are now. Good luck. Edited August 20, 2016 by Scully Quote Link to comment Share on other sites More sharing options...
Harry136 Posted August 20, 2016 Report Share Posted August 20, 2016 (edited) Im a trained mortgage advisor and for me to get a mortgage for a £100k property with a 10% deposit and live comfortably- on my own I need to be earning a minimum of £23k a year. What you need to remember is that its not whether or not you can afford it now, its can you affor it if the interest rates go up, most banks do a stress test of 7% on mortgage applications. I would advise that you have a look at a shared appreciation scheme. Edited August 20, 2016 by Harry136 Quote Link to comment Share on other sites More sharing options...
dob Posted August 20, 2016 Report Share Posted August 20, 2016 I live down south ,can't believe the difference in house prices, first time buyers have to put about 20% down as deposit , 1 bedroom flats start at £120,000 upwards, I really don't know how my kids are ever going to get on the ladder. Quote Link to comment Share on other sites More sharing options...
JBS Posted August 20, 2016 Report Share Posted August 20, 2016 10 years ago when I split with my ex I was paying £600 a month for our mortgage, she was at uni and I paid for everything, we got the mortgage easily because her family lent us a substantial deposit, when I tried to put the mortgage solely in my name they were having none of it saying I didn't meet the criteria and had to sell the house. I then used the small amount of equity to put a deposit on a shared ownership property, the combined rent and mortgage payment were £660 a month. Madness. Quote Link to comment Share on other sites More sharing options...
winnie&bezza Posted August 20, 2016 Report Share Posted August 20, 2016 I live down south ,can't believe the difference in house prices, first time buyers have to put about 20% down as deposit , 1 bedroom flats start at £120,000 upwards, I really don't know how my kids are ever going to get on the ladder. Tell me about it! A bloke I work with who's 25 has just got his first house with his GF. It's a one bedroom small house that's not a new build and cost them £150,000. They had to put a £25k deposit down and repayments of £500 a month. He didn't go out much and saved a lot of his money and so did she. I could afford the £500 a month but don't have £25 bloody grand laying around. Quote Link to comment Share on other sites More sharing options...
team tractor Posted August 20, 2016 Report Share Posted August 20, 2016 (edited) At just over £500 a month mines affordable but £90k over 18 years is a horrible thought . My grandad passed on and with my savings I found £15k My house is named after him . I bought a 3 bedroomed wreck and I mean a wreck. It took nine months to make it liveable . 10 years later it's extended by myself with an extra bedroom and gun room etc . It's still a cheap house . I don't know how people get or pay for a £400k house . My mate borrowed £1000,000 lol and said its only over 5 years it's another world Edited August 20, 2016 by team tractor Quote Link to comment Share on other sites More sharing options...
Jason_ox Posted August 20, 2016 Report Share Posted August 20, 2016 My best mate has just bought his first house, stayed at home until he was 31 and him and his Mrs put £40k down for a £300k 3 bed house. Repayments are over £1200 a month. That's classed as normal down here. Quote Link to comment Share on other sites More sharing options...
fortune Posted August 20, 2016 Report Share Posted August 20, 2016 (edited) The further south you get the more difficult it is. As far as I know there is nothing under 250 K around here. Most stuff is 325 and over. one of the daughters and son in law only just scrapped in to get a mortgage and we lent them 40K towards the deposit. Most months he clocks over 250 hours because he is paid for all time when away. It isn't easy even when you have a good job. It's not just the repayments it is all of the insurances and running casts that mount up against them. Edited August 20, 2016 by fortune Quote Link to comment Share on other sites More sharing options...
B25Modelman Posted August 21, 2016 Report Share Posted August 21, 2016 (edited) I live close to Winchester where land and housing is at a premium. A half mile from my house a company is building 50 new properties, 20 (1-3 beds) were classed as Affordable Housing and they were £375,000. All have been sold but I very much doubt to first timers. 50% of the houses left now start at £467,000. The most expensive remains for sale at £900,000. To get on the property ladder here is impossible. I have just read the sales pitch, *** will enable the doubling in size of the adjacent local park and deliver a range of wider community facilities, which will include allotments, a new biodiverse country park area, a circular running track and stacks more. A CIRCULAR RUNNING TRACK I can't wait to see that and all the dog poo on it.... Edited August 21, 2016 by B25Modelman Quote Link to comment Share on other sites More sharing options...
Luckyshot Posted August 21, 2016 Report Share Posted August 21, 2016 I need to borrow around 45 -50k and with the discount, was told I shouldn't need a deposit. The lenders claim it's low risk as if I slip up! They get a 30k profit from selling the property at market price apparently? Either way I am not going to let it get to me! I have my health, my Son and I am managing a lot better now I borrowed £50k 4 years ago and my payments are £263 a month. That's the most the bank would lend me at the time based on my salary of £20k a year. I've got 16 years left on it but as house prices near me are expensive I hit luck and bought the last property in my village that hadn't been touched since it was built in 1937 it needed everything but it was the only way for me to live in the village where I grew up. Quote Link to comment Share on other sites More sharing options...
B25Modelman Posted August 21, 2016 Report Share Posted August 21, 2016 I borrowed £50k 4 years ago and my payments are £263 a month. That's the most the bank would lend me at the time based on my salary of £20k a year. I've got 16 years left on it but as house prices near me are expensive I hit luck and bought the last property in my village that hadn't been touched since it was built in 1937 it needed everything but it was the only way for me to live in the village where I grew up. Only the windows to sort out, Quote Link to comment Share on other sites More sharing options...
fortune Posted August 21, 2016 Report Share Posted August 21, 2016 The property developers are hovering like vultures looking at any small packet of land to develop and apparently every Village has to have a 5 year housing plan. There is a land dispute over the road from me whereby one owner is claiming ownership of a chunk of the next door neighbour's garden which is owned by an 80 year old lady. The idea behind all of this is to get enough ground to put an access road into a field that lays over the back of those houses. The village is planned to take something like 450 new houses over about a 10 year period. Quote Link to comment Share on other sites More sharing options...
oowee Posted August 21, 2016 Report Share Posted August 21, 2016 Only the windows to sort out, BPB01_Facing-North-West_DSC00299-Title.jpg And a bit of work with a strimmer . Seriously the UK housing supply is in a mess. Even when we were building the £60k houses under Prescott the developers had to sell them at £120k or be accused of giving away public money. We need a large scale public house building programme in the towns and cities using compulsory powers. Quote Link to comment Share on other sites More sharing options...
oldypigeonpopper Posted August 21, 2016 Report Share Posted August 21, 2016 I need to borrow around 45 -50k and with the discount, was told I shouldn't need a deposit. The lenders claim it's low risk as if I slip up! They get a 30k profit from selling the property at market price apparently? Either way I am not going to let it get to me! I have my health, my Son and I am managing a lot better now hello LG, well after reading your post i sincerely hope you get sorted for yours and son Quote Link to comment Share on other sites More sharing options...
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