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First Time Buyer Very confused

VCUK
VCUK Posts: 7 Forumite
edited 18 October 2016 at 2:50PM in House buying, renting & selling
Hi All , Basically i'm 27, First Time buyer , salary around 36k with a 30k deposit, but i cant find anything ...

My First AIP was for 171k with Halifax, but now i cant find anything .

I'm shocked , i'm not looking for a palace but merely a 2-3 bed house within M25 or good transport links but everywhere i look on sites the only ones that show up are , Boats and Barges , or Homewise properties for 60yrs + :huh:

i dont want shared ownership as i believe these IKEA houses are already over inflated and poorly built , (i have a few friends in them and heard bad experiences)
Buying a flat is possible but not what i want , I've lived in flats all my life and now wish to actually live in a house .

Am i barking up the wrong tree and looking in the wrong places or what do i have to do ?
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Comments

  • Bluebirdman_of_Alcathays
    Bluebirdman_of_Alcathays Posts: 2,859 Forumite
    So you want a 2-3 bedroom property for 171k in one of the most expensive cities on the planet? I had to spend 100k more than that to get a 2-3 bed in Bristol. I think you need to manage your own expectations.
  • VCUK
    VCUK Posts: 7 Forumite
    it is possible , however they are around 230-250K minimum, my deposit + Mortgage totals to £200
    so i'm about 30k-50K short...

    does credit score make any difference in obtaining a higher mortgage ?
  • Bluebirdman_of_Alcathays
    Bluebirdman_of_Alcathays Posts: 2,859 Forumite
    VCUK wrote: »
    it is possible , however they are around 230-250K minimum, my deposit + Mortgage totals to £200
    so i'm about 30k-50K short...

    does credit score make any difference in obtaining a higher mortgage ?
    I think the most you can realistically borrow is 4.5x salary. With your deposit, that takes you to 192k. If you have a bad credit score, they will offer less/not offer at all. But a good "score" won't help. In any case, ignore the "score", they are not seen by any bank. It's the information that is important.
  • Candyapple
    Candyapple Posts: 3,384 Forumite
    First Post First Anniversary Combo Breaker Intrepid Forum Explorer
    No, your credit score is pointless, a marketing tool made up by the credit reference agencies to get you to part with your cash to pay their monthly subscriptions, so it bears no relevenace to your ability to obtain a mortgage of a higher amount.

    Heed the advice in post #2.

    You need to up your income and also your deposit. That's the only way you are going to be able to afford a house instead of a flat being single.

    Unless of course you have a partner, in which case both your salaries and deposits combined would give you a higher lending power.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • MumOf2
    MumOf2 Posts: 612 Forumite
    First Anniversary First Post
    Hi. Sorry to hear you can't get the type of property you would like with the money available, but it really is a matter of expectation management. A 2-3 bedroom house used to be a second or third home, not a first, I'm afraid. My son and his girlfriend have just bought a ground floor flat in south London. They have lived in flats since the age of 18 as students and they would have loved to buy a house with 2 or more bedrooms, but they had to do with a flat as that's all they can afford.


    Back in the day, a first home would be a bedsit or one-bedroom flat in a pretty grotty area. Then it might be a bigger flat or terraced 2 up 2 down, then a semi detached if you were lucky. It takes time to work up to a bigger property.


    MumOf2
    MumOf4
    Quit Date: 20th November 2009, 7pm

  • VCUK
    VCUK Posts: 7 Forumite
    is it possible for 2 friends to join and both first time buyers combine to buy but then sign over their "Share" ?

    Basically if i combined with a friend of mine and both our salaries allowed me to buy a home , the monthly payments would come from my account (Which i can meet and ensure get paid) but then my friend would sing over his share (Willingly) so i retain 100% ownership , is this allowed / possible ?

    the idea would to be that at a later stage i would help that same friend and do the same but i think we may encounter issues as neither of us would classify as first time buyers anymore (Not that i think it helps much ) and i would own a property .

    is this possible / legal ?

    in terms of credit score i'm in the 950s + so should pass any credit checks
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Holiday Haggler
    Sounds like a terrible, terrible idea. Shared ownership + renting out a room would make more sense.

    Houses are pretty darn expensive in London. Why not look outside the M25? Where do you need to get to work?
  • ap1985
    ap1985 Posts: 325 Forumite
    VCUK wrote: »
    is it possible for 2 friends to join and both first time buyers combine to buy but then sign over their "Share" ?

    Basically if i combined with a friend of mine and both our salaries allowed me to buy a home , the monthly payments would come from my account (Which i can meet and ensure get paid) but then my friend would sing over his share (Willingly) so i retain 100% ownership , is this allowed / possible ?

    the idea would to be that at a later stage i would help that same friend and do the same but i think we may encounter issues as neither of us would classify as first time buyers anymore (Not that i think it helps much ) and i would own a property .

    is this possible / legal ?

    in terms of credit score i'm in the 950s + so should pass any credit checks


    I personally wouldn't mix business/finances with friends or family..I personally think its a sticky ground...if you can wait and build up your deposit I would advice that. Are you in a rush to move?
    :jFinally going to be a homeowner:T
  • Bluebirdman_of_Alcathays
    Bluebirdman_of_Alcathays Posts: 2,859 Forumite
    VCUK wrote: »
    is it possible for 2 friends to join and both first time buyers combine to buy but then sign over their "Share" ?

    Basically if i combined with a friend of mine and both our salaries allowed me to buy a home , the monthly payments would come from my account (Which i can meet and ensure get paid) but then my friend would sing over his share (Willingly) so i retain 100% ownership , is this allowed / possible ?

    the idea would to be that at a later stage i would help that same friend and do the same but i think we may encounter issues as neither of us would classify as first time buyers anymore (Not that i think it helps much ) and i would own a property .

    is this possible / legal ?

    in terms of credit score i'm in the 950s + so should pass any credit checks
    As previously advised in posts 4 and 5, the credit score is unimportant. And no, your idea is not legal - it is mortgage fraud.
  • HouseBuyer77
    HouseBuyer77 Posts: 961 Forumite
    Combo Breaker First Anniversary
    You can certainly buy with a friend and put in a combined mortgage application to borrow a larger sum based on both incomes.

    However once bought your friend can't simply sign over their share. The mortgage company will need to agree that you can take on the whole mortgage (really you'll just be taking out a new mortgage to pay off the old one) and you'll hit the same problem.

    You could privately agree you will pay the mortgage entirely yourself but your friend will still be liable for the mortgage, have a claim on part of the property and will find their ability to apply for future credit restricted because they already have a mortgage (e.g. doubtful they could get another residential mortgage for a property of their own).

    Sharing the purchase with a friend carries other issues as well. What happens if you don't want to live together any more or fall out?

    As above you basically cannot afford the property you want. Either lower your requirements, look at different locations or increase your income.
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