Getting a Mortgage

I am looking to get a mortgage on a flat but I'm currently a student and working part time, I have about about 20% saved as the deposit but how likely is it I will be accepted and what can I do to increase my chances?

Reply 1

999tigger

Original post by Roshany

You need to convince them you have a steady regular income sufficient to service the mortgage.

How much are you wanting to borrow?
How much is your annual income?
How much is your disposable?

Reply 2

Roshany

Original post by 999tigger

You need to convince them you have a steady regular income sufficient to service the mortgage.

How much are you wanting to borrow?
How much is your annual income?
How much is your disposable?

£90000ish
£11000 right now but will be £16000 in October
I can save pretty much all of it I'm living at home and have maintenance loan to cover day to day.

Reply 3

999tigger

Original post by Roshany

£90000ish
£11000 right now but will be £16000 in October
I can save pretty much all of it I'm living at home and have maintenance loan to cover day to day.

Just ring a mortgage broker and they should be able to tell you off hand whether someone in your position could borrow.

Reply 4

ebam_uk

Original post by Roshany

£90000ish
£11000 right now but will be £16000 in October
I can save pretty much all of it I'm living at home and have maintenance loan to cover day to day.

Yes you can get a mortgage. Also consider putting someone else on it ( who is neutral or parents)... as there are special mortgages where the parent is the guarantor:
ie:

https://www.bathbuildingsociety.co.uk/mortgages/mortgage-products-for-individuals/buy-for-uni

Reply 5

Roshany

Original post by ebam_uk

Someone that will pay a part of it or just has their name on it?

Reply 6

ebam_uk

Original post by Roshany

Someone that will pay a part of it or just has their name on it?

Well theoretically if you put your name on a mortgage (joint), legally both parties are liability if one doesn't pay...

Reply 7

Roshany

But does it mean I’m more likely to be accepted?

Reply 8

Doones

Original post by Roshany

Does your part-time net income more than cover the expected monthly repayments for the mortgage? In other words, is it actually affordable? You can use this to estimate the affordability.
https://www.moneyadviceservice.org.uk/en/tools/house-buying/mortgage-affordability-calculator

Also how long have you had the job?

Reply 9

Roshany

Original post by Doonesbury

Does your part-time net income more than cover the expected monthly repayments for the mortgage?

You can use this to estimate the affordability.
https://www.moneyadviceservice.org.uk/en/tools/house-buying/mortgage-affordability-calculator

Also how long have you had the job?

Thank you!

I’ve had it for 2 years

Reply 10

Doones

Original post by Roshany

Thank you!

I’ve had it for 2 years

Ok that's good. And the affordability?

Are you going to live in the property or rent it out?

Reply 11

nexttime

Original post by Roshany

£90000ish
£11000 right now but will be £16000 in October
I can save pretty much all of it I'm living at home and have maintenance loan to cover day to day.

The normal cap is 4.5x your income, which in your case (in October) will be £72,000. They also tend to say you can't be expected to spend more than 40% of your income on your mortgage. In my experience banks tend to be absolutely inflexible on this, even if you argue you have no other outgoings and can afford way more than they calculate. For example, I have been able to pay 250% of my 'maximum affordable' mortgage repayments this year.

Original post by Roshany

But does it mean I’m more likely to be accepted?

Yes of course.

But your parents will be agreeing to bail you out for the entire mortgage if you can't pay for whatever reason (illness, redundancy, anything), and it will also affect their credit rating and ability to borrow, so its a huge committment for them!

From their perspective it might be better to 'loan' you an amount of money that means you can afford the mortgage alone. Although officially it would be a 'gift', because you need to declare any other outstanding loans you have on the mortgage application!

Reply 12

Roshany

Original post by nexttime

I think the 40% thing might be an issue but I guess I have help to buy which would help?

Yeh my parents are willing to help me out if it goes down hill but I don’t think it will

Reply 13

adzzzzz

surprised how no one has mentioned credit rating?

Reply 14

Roshany

Original post by adzzzzz

surprised how no one has mentioned credit rating?

My credit score is actually really good I’ve had short term loans that I’ve paid in full multiple times so I think that’s one aspect I think will be fine