getting a mortgage on low wages

[wigglyworm]

i wonder if any of you will be able to help or advise. my partner and i plan to get a property in about a years time, we will have a deposit for about 10k but the problem is we earn between us about 26.5k and would ideally like to borrow 130k to get anything half decent or 120k at the worst. the problem is all the mortgage calculators i try offer us well bellow 100k, as we would like to move around where we work which is shirley birmingham this is no where near enough. even the surrounding areas are high. anybody have suggestions or know a lender that offers higher multiples. thanks

[buildersmate]

The Government is trying to help those in your situation by widening the availably of equity share schemes. You basically buy about 60% stake in the house and rent the other bit, paying an rent equivalent to 3% on the bit you don't own. The Police, Healthworkers, teachers and other critical services workers (called key Workers) have schemes already up and running but they are trying to broaden it to enable First Time Buyers to start on the ladder. Look here:

http://www.odpm.gov.uk/index.asp?id=1122891

Notsure when it actually will get launched. Ask Johnnie 2 Jags Prescott.

[MrsJo49155]

I am sure you will find some unscrupulous lenders wishing to offer you higher multiples but remember that mortgage lenders apply a formula to the amount you can borrow based on a multiple of the income(s) of the borrower(s) to make sure that you are not over stretched and can afford to keep up with repayments.

Bear in mind that mortgage rates have been quite still of late but they could go up high as they have in the past.

I really do sympathise with people such as yourself trying to get a food on the bottom rung of the property ladder and wish you luck

[Loosehead]

The only other way is self cert, initially designed for people with uneven or unusual income patterns, essentially you will have to lie about your income. It'll be a slightly higher percentage though.

[Miss Zippy]

Have you actually looked into the monthly repayments based on borrowing �130k? If your joint income is �26.5k pa, then this means your household monthly income is around �1,600. Average monthly repayments on a �130k 25 year mortgage will be around �750, which will only leave you with �850 each month to pay bills, buy clothes and food, money for entertainment/holidays etc etc, which isn�t much for two people. Is it not possible to look for a cheaper property? It is better to buy something cheaper and then aim to pay off more of your mortgage, which will build up your equity so you can look to move to something bigger in a couple of years' time. I know that some lenders will lend more to people who are in the early stages of a professional career (e.g. solicitor/accountant/actuary) knowing that their income will rise significantly over the next 5 years or so once qualified. If this applies to you or your partner this would be worth looking into.

[erimus1]

Hi, I completely understand your predicament, as will many others. I know that some lenders can offer up to six times income (I believe the Halifax fot into some hot water over this)

If the figures don't add up, think about self certifying - you can do this if you want to add any additional income, either as part time or as overtime in your main job (which most, but not all of the lenders account for)

Most self serts want a higher deposit - 10 - 15%

Also try a repayment only mortgage.

Don't overstretch yourself though.
Good luck,
Steve