Posted on 16 March 2011 by Charlotte
My husband and I have always lived in social housing, but now due to our expanding family we are looking into New Build HomeBuy. The more we look into it the more we like the idea. There is a new development of houses being built just around the corner from where we currently live with some of the units to be offered on a part buy part rent basis, so this would be ideal for us. However, I am worried that we might be wasting our time thinking about this as we may not be able to raise a mortgage in our circumstances. My husband works full time and I am a stay at home mum looking after 2 children. Would lenders take into account my cares allowance and Tax Credits when calculating what size mortgage we could get?
Another issue is we only have a small deposit saved, I estimate the legal costs of moving (fee's, solicitor conveyancing etc.) to be around £2000, therefore we only have £1000 saved towards a deposit. I think we could probably save another £3000 over the next 3-4 months at a push, but this would mean we'd only have about a 5% deposit on a £74000 share.
As the show homes on the new development are due to be launched at the end of May, they will be taking reservations, and I don't feel we have much more time to save any more, or all of the HomeBuy properties will get snapped up. Are there any lenders that would be willing to give us a mortgage, considering not just our income circumstances but the small deposit also?
There is one Lender I know of who will consider a 95% mortgage on New Build Homebuy schemes, but only if they are based in the following postcode areas: BA, BH, BN, BS, DT, GL, GU,HP, OX, PO, RG, RH, SL, SN, SP & SO.
If you live in one of these areas then it is possible that they may be able to help. Your earned income is not sufficient to support the mortgage of £70,000, but they do underwrite each case on it's own merits and may be willing to accept your benefit income to support the mortgage required. However, if you do not then it is very unlikely you will be able to get a mortgage without at least a 10% deposit.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.
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