Hi Ben,
I see you've given some figures and based on those, it looks like you'll find it harder/struggle to find a decent mortgage. Given that lending criteria is more strict nowadays that's another spanner in the works for you. Unfortunately, it doesn't end there either. There will most likely be interest base rate rises over the next year, perhaps 2 of them and assuming 0.25% for each, that'll take the base rate up to 1%. Given that 'most' mortgages have 1,2,3 4 or 5 year fixed rates, depending on which you go for then 'potentially' you might have to pay a higher rate in the future. To try and mitigate that, base your mortgage repayments based on perhaps a 2% above the base rate/fixed term rate you are on. This again assumes that perhaps in the next 2-5 years the base interest rate goes to perhaps up to 2/3%. If, base rates go higher than that, then a massive amount of people will see their repayments rise substantially and the fear/likelihood is a corresponding amount of mortgage defaults/repossessions.
I know it's 'easy to say' on a internet forum, but I'd say there's some avenues you'll need to consider carefully now and in the near term;
1. If the lenders aren't willing to give you a decent mortgage - then continue to rent as it'll be your only option.
2. If they're willing to give a decent mortgage, consider longer term issues like base rate interest rises as I mention above, the increases might just mean the difference between staying in the black or going into the red each month.
3. Is there a chance you could apply/progress into a better paying job within your profession? if so, go for it!
4. Is there a chance you could increase your income ? 2nd job, part time home business etc?
5. Any valuable assets you could sell to give yourself a bigger deposit/downpayment?
6. Is there a chance you could move to a more affordable area and either change jobs to a closer one or, commute to the current one (means you'll have to wake up earlier each day!!) ?
Over the next year, it's going to be a difficult time to see what comes of the whole Brexit mess and currently, things aren't looking great. I'm more of a cautious 'investor' as it were so I'd say perhaps hang off until more of the uncertainty gets cleared/clarified before going into a mortgage. I understand however, there's reasons for which you would/must want to get a mortgage etc as well which compounds that thought.
Good luck to you whichever way things go though!
Cheers, DtM ! West London & Slough UK!
