how do i look to get approved for a mortgage

ilovepink

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can anyone give me some advice please.

i am in a permanent pensionable job and earn 40k. i have savings of 8k and have a car loan of 7k. im a first time buyer also. would anyone know how i look to stand for a mortgage...dont want to be laughed at in the banks...
thanks guys!
 
The amount you can borrow can vary widely from lender to lender. But in general, if you can increase your savings (and prove you have a record of being able to save regularly) and pay off your loan you'll increase your chances of being looked upon favourably.

I would get together all your supporting docs (pay slips for last 3 months, latest P60, proof of savings, details on car loan and when it will be paid off) and make an appointment with the mortgage advisor in a couple of banks. They will be able to tell you how much they would be willing to lend and if it's too little advise on how to proceed.

It's worth nothing that you'll need at least an 8% deposit as many lenders won't lend above 92% of the property's market value. So you need to build that 8K up to a larger amount.
 
If you wait until you have saved up your 8% deposit, expenses and paid off your loan, you will be in a stronger position. Ideally, you should accumulate your savings in a separate savings account every month so that you can show a potential lender, say twelve months savings history to prove that you have the ability to live within your means and save money regularly, which will encourage them.
 
General Guidlines:

  • Salary, max 5-6 times
  • Deposit, minimum 8%
  • LTV, max 92%
  • Other loans and Liabilities will take away from amount of mortgageyou will be given
  • Property situated near a town (resale value)
  • Strong Job, minimum 6 months (not on probation, only with TSB), mainly work off min 1 year
The above advice from other posters is sound. Without Minimum 8% deposit your application will not be entertained (unless you apply through an affordable housing scheme).

Payoff your car loan as soon as possible, while continuing to save for the deposit.

Banks work off your ability to repay the loan, which is why having other loans to pay while applying for a mortgage can reduce how much they will potentially lend .

Dont worry too much, I cannot see house prices rising anytime soon . . . ;)
 
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