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Getting a mortgage when on minimum wage, possible?

23
Found 21st Mar 2013
Im 25 and renting a property for over £400 a month i make roughly £900 a month but in September my wage will be increasing to around £18k after tax.

Ive seen apartments that would interest me for around £40000. would there be any chance of me getting a mortgage on my current wage or is the obvious thing to wait until September?

I know the obvious thing would be to go to the bank and talk to them but im just wondering has anyone on here been able to get a mortgage whilst on minimum wage
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23 Comments
You dont want to get a 100% mortgage, you will want to save up for a deposit first as it will make a big difference to your repayments.

You should have no issue with getting one if that's all you are looking to spend. Be sure to look at things like ground rent and other hidden nasty costs such as paying a building management company (as these are usually large sums to pay each year).

bbc.co.uk/hom…tml
http://www.moneysupermarket.com/mortgages/calculator

these may help give you some ideas about costs.

Edited by: "Astec123" 21st Mar 2013
Original Poster
thanks for the reply i could probably have up to £5-10k as a deposit at a push
Thanks for pointing out the other costs I forgot about things like that, what would be the average maintenance charges etc per year does anyone know?
liamcush

thanks for the reply i could probably have up to £5-10k as a deposit at a … thanks for the reply i could probably have up to £5-10k as a deposit at a push Thanks for pointing out the other costs I forgot about things like that, what would be the average maintenance charges etc per year does anyone know?



Depends on the building you're in really so cant help there. It may be worth having a look at some places you like the look of, see what you can get for the money, ask the relevant questions while there. Go in not intending to buy and only to get information you want to know. Then use that information to work out your actual costs per month and get a good idea of what your real costs will be. Dont forget that repairs will be something you need to consider as you would be liable for that sort of thing, a boiler is not cheap to replace so be sure to think about setting part of your budget out for emergency repairs.
Edited by: "Astec123" 21st Mar 2013
I live in Southampton, and live in a small block 10 flats, and the ground rent on my studio flat is £50 a year. the Maintenance is £1020 a year!!! started at £780 seven years ago. if you can buy a small house or flat conversion I would highly recommend it, as the management companies who you pay the maintenance charges to are best described as "Scum"!!
Original Poster
ouch £1020 a year doesn't sound too nice, i might look into small houses if thats going to be the case.
repairs wise i would be ok as a lot of my family and good friends are in trade careers
liamcush

ouch £1020 a year doesn't sound too nice, i might look into small houses … ouch £1020 a year doesn't sound too nice, i might look into small houses if thats going to be the case.repairs wise i would be ok as a lot of my family and good friends are in trade careers



Might want to try find a run down property and do it up how you like? They usually go via auctions though and watching these TV programmes always seem to go for more than you'd expect. Also not sure how mortgage and auction buying works.

Obviously this becomes far easier if you have a partner working also as you're bringing in double the cash into one household.
Original Poster
i was under the impression auctions were cash only sales? maybe not?
liamcush

i was under the impression auctions were cash only sales? maybe not?



Correct.

Cash only and OP welcome to the Middle class.
Though I understood the way a mortgage worked was a bank said you could have £x. Therefore all you'd have to do is hit the auctions and not bid over that amount.

Edit: here we go... http://www.bbc.co.uk/homes/property/buying_auction1.shtml

On a side note, probably a good idea to get on the property ladder, before that anchor Osborne's plans further destroy the housing market and inflate sale prices, and subsequently rents.
Edited by: "anewman" 22nd Mar 2013
I'd enquire now but if you can wait until Nov you'd have a better chance. Both mortgages I've applied for based it on what you earnt for the last three months and a referrence from employer to say you weren't about to lose your job. So I don't think you'd be any better off in Sept than you are now.
Well we just bought a house (finalised last week) for £40000. We had £8000 deposit and borrowed £32000 over 7 years so it's £479 something per month. I don't work any my husband only earns £19500. When it was done with the online check it said no but the mortgage advisor took it to the board (can't remember what its official name is) and they said yes without a problem or a fight. So i think with what you earn it is possible.
ewan231210

Well we just bought a house (finalised last week) for £40000. We had … Well we just bought a house (finalised last week) for £40000. We had £8000 deposit and borrowed £32000 over 7 years so it's £479 something per month. I don't work any my husband only earns £19500. When it was done with the online check it said no but the mortgage advisor took it to the board (can't remember what its official name is) and they said yes without a problem or a fight. So i think with what you earn it is possible.



You bought a house for £40000? Where, Legoland?
jadrules

You bought a house for £40000? Where, Legoland?



According to that guy's profile he is from strathaven. After a quick google I ended up on this estate agent, and although it is a bit of a crapper and needs work, it's still 60k for a 3 bed house!

rightmove.co.uk/pro…tml
Badders256

According to that guy's profile he is from strathaven. After a quick … According to that guy's profile he is from strathaven. After a quick google I ended up on this estate agent, and although it is a bit of a crapper and needs work, it's still 60k for a 3 bed house!http://www.rightmove.co.uk/property-for-sale/property-25999539.html



Fudge me. My only options are £100k+ one bed flats!
Surely not shared equity?

No houses around us for £40,000 or anywhere near.

Look into getting a government assisted mortgage for first time buyers they increased the eligibility recently
doritos

Surely not shared equity?No houses around us for £40,000 or anywhere near.


no houses , more like no properties
DE4L3R

no houses , more like no properties



The Polish have to live somewhere.
My house is a 2 bed cottage I bought it from my parents. It needs alot of work :0) £100,00 would get you a fairly nice detatched 3/4 bedroom near where i live and it's quite a nice area.
Edited by: "ewan231210" 22nd Mar 2013
i'm on minimum wage (£6.70 p/h) and i've managed to get a mortgage in november for just under £50k, so it is possible.

the calculators on many lenders sites do seem accurate, Halifax were the ones who would allow me to borrow the most.
mboora

Correct. Cash only and OP welcome to the Middle class.

No, they arent, I bought a house at auction and required a mortgage, you just need to have as much in place as possible as the turn round time can be short and you risk losing the cash deposit if you dont hit the deadline.
anewman

The Polish have to live somewhere.


'The Polish' is in the process of buying her third property. Bite me!
thepolishlandlord

'The Polish' is in the process of buying her third property. Bite me!



Bit of a delayed comeback
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