How to get a better mortgage loan with low income in United kingdom

How to get a mortgage loan with low income in United kingdom

Mortgage loan: lenders will look at how affordable your mortgage payments will be before granting you a loan so you might struggle to find a mortgage with a low income they’ll examine your total budget and the size of the mortgage you want to borrow they’ll check if your income could comfortably cover your bills your living costs and the mortgage repayments they’ll also look at whether you’ll be able to make repayments if your personal circumstances were to change or if interest rates were to rise but all is not lost in this video I’ll hopefully cover a few ideas which may help you buy a property I’ll cover off deposits types

of income that can be used and which mortgage loan schemes might be worth exploring hi if we haven’t met before my name is dan and I’m a camp qualified mortgage and protection advisor of this article is purely for educational purposes only and should not be seen as advice or recommendation to act and a must stress as a mortgage is secured against your home it could be repossessed if you do not keep up with the mortgage repayments thank you to bryony for this article request I’ll go over

some of the basics of trying to buy a house on a low income as your circumstances will be different from others there is a lot of scenarios to cover so I’ll mention the basics but please get in touch with me to discuss your specific circumstances a lot of people are unaware that they can use benefits as income when applying for a mortgage at the time of recording there are a handful of lenders that will consider lending if you receive benefits only and do not have employed or self-employed

income just be aware that with some of the lenders there are some caveats such as a maximum loan to value and a limit on the type of benefits awarded to you getting a mortgage with a low income can be incredibly difficult if you have a low

the income you’ll struggle to save a large deposit which means you need to borrow more but if you have a low income you may not be able to borrow 90 to 95 of the property value is a bit of a catch-22 situation so let’s start with deposits I’m not going to tell you to save more that would be too obvious but something I will highlight you probably can save more than you >>>>>mortgage loan<<<

realize part of my job is to assess customers outgoings and when I ask people how much they spend on certain items they often are not underestimate them it’s only when we sit down and go through the bank statements that they realize that outgoings are higher than they expected the most common one is food shopping as an example someone will say they spend 300 pounds a month when it’s in fact over 500 pounds a month another is how much they spend on clothes my advice to you is go back through your last three months bank statements and total up how much you spend on everything this will>>>>mortgage loan<<<<

help you budget going forward as we’re all guilty of overspending including me if you’re unable to cut back on your costs there is the option of receiving a gift this typically needs to be from a close family member such as a parent or a sibling but some lenders allow grandparents aunties and uncles and cousins to gift you money I see advice online to take a loan from parents but if this is the case then you need to declare the lender as they’ll need to budget this into your affordability so if you are unable to get a high mortgage loan to value mortgage because your income is low then there are a few schemes that you

might wish to consider I’ll cover the main two for now let’s start with help to buy this is possibly the most mentioned scheme out of the two this is where you put in a five percent deposit and the government contributes 20 off or 40 if you’re buying within London this enables you to qualify for a 75 loan to value mortgage or 55 in London and access more affordable rates than a 95 loan to value mortgage I have created a video on the latest help to buy scheme here but please watch after

this video in case you miss out on some valuable information that I like to provide something to note with help to buy scheme is the government portion of the deposit needs to be paid back I go into detail about this in this video here next up you have shared ownership this is where you can put in a five percent deposit and buy as little as 25 of the property and rent the remaining 75 percent so for five percent deposit on help to buy mortgages too big or you can’t borrow the required

amount at 75 of the property purchase price then you can purchase a minimum of 25 of the property on the shared ownership scheme you can over time then purchase a larger share of the property which is known as staircasing I cover this better in detail in this video another solution which is an official scheme is the bank of mum and dad you may or may not have heard of it if you’re fortunate enough to have parents who either have cash or assets there is a chance they’ll be able

to help as there are several ways I won’t do any justice by covering it quickly in this video but if you watch this video where you’ll get some ideas which I can elaborate on if you call me moving on to benefits as I’ve mentioned previously in this video there are lenders that will lend if you only receive benefits some lenders will factor in 100 of the benefits whereas others may accept only 50 percent I was going to list the benefits that can be accepted but the list is vast and subject to

change so if you’re in receipt of benefits and needing a mortgage it’s best to contact me or another mortgage advisor to go through what benefits can be accepted and how much the lender will use in their affordability calculations also if your receipt of >>>mortgage loan<<<

maintenance payments regardless of its core order or not these two can be used with some lenders you also have the option to move to a more affordable area this isn’t ideal but it doesn’t necessarily have to be for the long term once you’re on the property ladder making monthly contributions towards your mortgage balance means your equity over time should increase this will hopefully help you save in the meantime for a bigger deposit using the equity within the property that you build up as a deposit something I’d like to highlight and save you time is talking about your credit history if you’re looking at

obtaining a mortgage bad credit then you’re highly likely going to need a 15 deposit or more for more information on obtaining a mortgage with poor credit watch this video if you’re unsure how good or bad your credit history is I’ve put a link in the description below that allows you to take a look using a 30-day free trial I’ve kept this video brief but there is so much more to getting a mortgage on low income than what I’ve already covered so please contact me to avoid making the 10 most common mistakes when buying a home.