how can you get a mortage when on low wages?

Answer 1

Mortgages are given out depending on the borrower's ability to pay the money back, so depending on the level of wages would determine how much the lender would be prepared to lend you. Mortgage companies usually use a multiplier of about 3 times annual salary as a guideline as to how much you can borrow. However if you already owe money on loans or credit cards the mortgage lender would calculate how much you are already paying off monthly to existing debts and take that figure off what they would be prepared to lend you. In very simple terms if you earnt £10k a year with no other outstanding loans, credit card payments then most lenders would lend you £30k on a secured borrowing ie a house/flat. Some will lend you more but you still have to take into consideration what you can afford to pay back each month. With the interest rates rising also, borrowing money at 6% now may be ok, but if the interest rate rose to 10% (not unheard of, think back to the late 1980's/ early 1990's rates went to 15%) you still have to be able to pay the monthly repayments or risk losing the house.

Answer 2

I'm a mortgage broker and there lenders who will lend you up to 8.5x salary based on affordability. I would never recommend anyone takes such a drastic income multiple unless their circumstances are going to change in the future. There is no point in struggling to buy something you cannot afford as if you default on your payments, you going to lose the home anyway, wait until you are more comfortable or sit down and do a full indepth budget report to make sure you can afford to live.

Answer 3

Not everyone can buy a home. Owning a home can be expensive. It's more than paying the mortgage. There's taxes, routine maintenance and repairs, etc.

You save for a downpayment. Then look at homes you can afford. Of course, you need a good credit history.

Answer 4

Hello S. you can. Mortgage companies usually use a multiplier of about 3 times annual salary as a guideline as to how much you can borrow. I found interesting information about your answer & the best options here.
http://all-mortgage-calculators.blogspot.com/2007/07/mortgage-loans.html
Good luck!

Answer 5

You Should not!
u should figure out how to increase ur income.
were u sold or born into ur present wages.
No ? of course not , u chose to them.
Keep renting , go to school college tradeschool library learn to increase income, decrease expenses. reduce credit slavery, save money THEN apply for a small home loan that equals one week take home pay not more.
Do this and an associate will not visit u to show to the street.

Answer 6

You can get a mortgage on any wages as long as its regular employment.

Answer 7

how can you afford to pay a mortgage on low wages?

Answer 8

try a specialist broker

Answer 9

maybe rent to buy ?