Getting Mortgage Low Income high Deposit

It is possible to get a mortgage on a low income. However it is becoming increasingly difficult to buy a house because house prices are rising faster than the rate of inflation. If your income is low. There are a number of possibilities to help you get a mortgage and get on the propery ladder.

1. A significant Deposit will help. If you have a deposit of over 15% of the house price, banks will be more willing to lend you a loan.

2. Self Certification Mortgage. This is a mortgage for those who have difficulty proving their own income. If you can save up a deposit (or borrow from parents) it sill definitely help in getting a self certification mortgage

3. Consider a Joint Mortgage. This is where you share the cost of buying a house with someone else. see Joint Mortgages

4. Higher Income Multiples Some banks are now willing to lend upto 5 times your salary. Therefore don’t be discouraged if traditional banks turn you down.

5. Affordability is important. Many lending institutions look at your monthly income and outgoings. They look at whether you can afford a mortgage. Rather than just looking at traditional income multiples. See How much can I borrow

Mortgages for first time Buyers

See also: problems getting a mortgage at Shelter