Can Single people with low wages afford a mortgage?

bakes0310

bakes0310

bakes0310

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As long title, if someones on minimum wage or near to that, would it be possible to get a mortgage. I don't think it would be possible with all your bills and food etc. You probably couldn't get any goodies like have a cheap broadband even (not important just an example) or go out and live your life.
On minimum wage how much would the bank give you, would they even look at you. And how much of a deposit would be the minimum that you should save?
 
you'd need a big deposit

i'd say 20%+

banks wont soley look at how much you earn. they'll look at your history. do you have any loans, have you ran a tight account, do you have a benifactor if the **** hits the fan? (i wouldn't trust the insurance they'll offer if you lose your job, sick etc)

a bank wont want a repossesion. you can get mortgage breaks for a short period should you ever need one.

say you take home £1k. if you can get a big enough deposit to get your mortgage and council tax to £500 p/m, that would leave you £500 p/m to live on. could you do that? with sacrifices, i'm sure you could.
 
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Depends on where you live I guess - There's no chance where I live, but the further North you go the cheaper houses get.
 
Big deposit and living in a total crap hole that no one else would live in and yes its probably possible.
 
Using your weekly hours and overtime, try and figure out what your annual wage is, then plug that into some online calculators and see what comes up.
 
On minimum wage? Depends where you are living in the country I guess, but going on 'average' house prices....no not a chance tbh, since min wage for a 37.5hr / week job is gross £12,187.50 (then less Tax and NI) a year.

Banks have gone back to lending, what, 4 times salary? so if you are looking for a house in the £50k range, then needing a minimum £5k deposit with monthly payments of I would guess ~£300, then it's just about doable.
 
cm1179 said:
you'd need a big deposit

i'd say 20%+

banks wont soley look at how much you earn. they'll look at your history. do you have any loans, have you ran a tight account, do you have a benifactor if the **** hits the fan? (i wouldn't trust the insurance they'll offer if you lose your job, sick etc)

a bank wont want a repossesion. you can get mortgage breaks for a short period should you ever need one.

say you take home £1k. if you can get a big enough deposit to get your mortgage and council tax to £500 p/m, that would leave you £500 p/m to live on. could you do that? with sacrifices, i'm sure you could.
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Freakbro said:
On minimum wage? Depends where you are living in the country I guess, but going on 'average' house prices....no not a chance tbh, since min wage for a 37.5hr / week job is gross £12,187.50 (then less Tax and NI) a year.

Banks have gone back to lending, what, 4 times salary? so if you are looking for a house in the £50k range, then needing a minimum £5k deposit with monthly payments of I would guess ~£300, then it's just about doable.
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Ouch 20%+ for deposit, I can see why its so hard.
Don't think theres such thing as a house in the £50k range:p
 
Freakbro said:
Banks have gone back to lending, what, 4 times salary? so if you are looking for a house in the £50k range, then needing a minimum £5k deposit with monthly payments of I would guess ~£300, then it's just about doable.
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4 - 5 times salary depending on the lender, your situation and the size of the deposit. You'll need a big deposit.
 
you can do a part mortgage, like you buy 40% and the rest is still owned by a housing association, or you can get a joint mortgage with a partner, or yeah if you have some savings you can put down a massive deposit to reduce your monthly mortgage repayments.
 
Generally deposit has more of an impact on the lending decision then salary. If you have a 50% deposit most banks will rip your arm off to lend to you. Though this is quite unhelpful given that you have also asked what's the smallest deposit you would require.
 
bakes0310 said:
As long title, if someones on minimum wage or near to that, would it be possible to get a mortgage. I don't think it would be possible with all your bills and food etc. You probably couldn't get any goodies like have a cheap broadband even (not important just an example) or go out and live your life.
On minimum wage how much would the bank give you, would they even look at you. And how much of a deposit would be the minimum that you should save?
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If you rent out any spare rooms then it would be easy.
 
Yep, I know a guy who bought a 1 bed flat (circa £85k) and he's on a low paid job.

In a major city? Not a chance, hell, people with good jobs can struggle to get mortgages in the city.
 
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Minimum wage? Higher rate tax payers here struggle to find a 'decent' starter home (2 bed), I believe the term is income rich, asset poor... First world problems right?
 
I got a 75k mortgage on a £14,500 salary at the point of applying for it.

£17,500 deposit.

The house needs a lot of work though, so if you want a habitable house straight away I'd say no, but it's my little project. :)
 
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