Will i be able to get a mortgage?
First of all im a 21 male if that matters. secondly I am currently earning £8500 a year in a part time job, but should be starting an apprentiship in the foreseable future with a wage increase to about £13000 a year.
I currently have £9000 pound ready and waiting for a down payment on a £95000 house.
Now i know that anyone in my position normally wouldnt stand a chance getting a mortgage BUT my mother is willing to be a guarentor, and i was hoping this would significantly increase my chances as my parents own five properties, one of which is a 13 bedroomed B&B sort of type with a restraunt on the ground floor.
any advice or information would be greatly appreciated.
- 7 years agoFavorite Answer
Firstly, I do agree with Womansworld above - at your age you have plenty of time to improve your job circumstances and income to allow you to qualify for a mortgage on your own. You'll get better rates and terms by doing this than you will with any of the guarantor mortgages currently available in the UK.
However, if you're insistent on focussing on mortgages, have a look at The Mortgage Works: http://www.themortgageworks.co.uk/
They're one of the leading specialist in gurantor mortgages, and do allow first-time buyers to borrow significantly larger amounts of money than their own incomes would usually allow, based on the incomes and assets of their gurantor. However, this assumes several things: that your parents are not supporting any siblings you have in a similar way; that they are not within 15 years of retirement age; that they own all their properties outright and are not paying mortgages on them; that their B&B/restaurant is a successful business turning a good profit. The mortgage calulator on the website will give you a basic idea of what they would be prepared to lend - sit down with your parents and enter some figures: http://www.themortgageworks.co.uk/calculators/guar...
Do think about taking out a gurantor mortgage very carefully and discuss it openly and clearly with your parents. Involving family in financial situations which have the potential to become complicated can sour family relationships. Can your parents genuinely afford to guarantor your mortgage for you, which means paying it on your behalf if you cannot? If you were to lose your job at some point in the near future and be unable to find another for some time, for how long would your parents be happy to pay your mortgage for you? Months? A year or more? Guarantor mortgages are for full liability, meaning your parents will be held responsible for the entire debt.
Also bear in mind that guarantor mortgages are best suited to first-time buyers who expect their income to increase substantially over the next few years. The initial fixed term of a gurantor mortgage is for only a few years: after that the expectation is generally that you will take out a standard mortgage with a traditional lender, without your parents as guarantors, because your income will be substantial enough to allow you to do this. Guarantor mortgages are thus ideal for someone training to be a solicitor or doctor, for example, who might not earn enough now to get the mortgage they want straight away, but will qualify in a few years when their income jumps. They're not suitable if you expect to be earning only £13,000 or not much more for the forseeable future.
- Steve BLv 77 years ago
I expect you will be able to find some cowboy outfit that will charge you an arm & a leg in fees and stick you with a Mortgage with some outrageous rate of Interest ....
They will be fully aware that you won't be able to make the repayments of over £1,000 a month, however they will be rubbing their hands with glee at the prospect of foreclosing on your parents property ..
As a 'rule of thumb', for a 'proper' Mortage from a 'reputable' lender you need a 20% 'deposit' and to borrow no more than 3 times your salary ...
...so, to buy a £95k house you need to put about £20k down and for a Mortgage on the rest (£75k) you need a salary of at least £25k ...
- AmyLv 67 years ago
the bank will usually lend you between 3 and 5 times your annual wage. you also must have been in the same job for a length of time eg 2 years. you not only need the deposit upfront, but also solicitors fees, agents fees, surveyors fees, moving costs, allow £3000 - £4000 for this.
if your parents own that much property, could they not buy it and rent it to you for a lower amount for now to help you raise money? i know you want a house of your own but the average age of a first time buyer is now close to 40 because it costs so much. for now you need to save as much as you can and get your credit score up.
- raffoneLv 43 years ago
i'm no longer particular in the experience that they offer FHA loans there. i'm in the U. S.. My husband and that i went that course. i became a homemaker and he worked complete time. We were able to purchase with out any money down. It has all lower back fired- and now I desire we would have merely rented. imagine about this. once you employ some issues must be blanketed and if something is going incorrect you call the owner to have someone restoration it. If it is your position and something is going incorrect, wager what? that's on you to go back up with the money and connect it. in case you do not imagine you're prepared, then do no longer purchase yet. Take a at the same time as- there is not any time body on at the same time as someone is able to purchase their first living house. and do not ever enable everyone inform you you're squandering effective money at the same time as renting- i imagine that's smart. solid success!