Hypothetical morgage situation

J

john_cappa

Registered User
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15
Income 18,000

Self Build Mortgage required: 80-90,000

Savings: 90-100,000 with strong savings history.

Chances?
 
Too low a salary!. Bank calculates at least 16K net income required to meet personal living expenses.
 
Oh. I though you were allowed to spend up to 40% of income on mortgage which I could comfortably afford.
 
Yes, that is more or less correct, some banks work on 35% BUT it is subject to a minimum surplus for living costs, that is what would catch you.
 
Sorry, but you'll have to work towards a significantly higher level of income before you will qualify for any mortgage. The 16K figure above reflects an expectation of what a single person will need to meet basic living standards (before any loan repayments) over a typical year. There are people who can comfortably live on less than this, but the figure is based on average levels of expenditure.
 
I may be in stuck so. Job i am in is low paid but not my career so to speak.

Hopefully will be fully qualified next year and will secure a good paying job but even then it would likely be on a contract basis so no good for mortgage application though it would allow me to increase savings significantly.

May just have to start building with the 100K I will have by the end of the year and see how far that takes me.
 
I would have thought that you could build a basic house with potential for extension for 90/100K at present. Particularly if your not in a rush and spend a bit of time sourcing good deals on materials!
Fair dues to you for saving that level of funds on an 18K salary! You're obviously not a big spender:)
 
44brendan said:
I would have thought that you could build a basic house with potential for extension for 90/100K at present. Particularly if your not in a rush and spend a bit of time sourcing good deals on materials!
Fair dues to you for saving that level of funds on an 18K salary! You're obviously not a big spender:)
Click to expand...

25K was gifted but the rest Is hard saved by me and my wife. My wife has no declared income at the moment so that is a problem. Even we set her up as a sole trader it would be several years before a bank would take her income into account.

Realistically the house I want will be 175-200 depending on exact finish.
 
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