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  • FIRST POST
    • shaminc3
    • By shaminc3 19th May 17, 10:21 PM
    • 3Posts
    • 0Thanks
    shaminc3
    FTB - Will this work?
    • #1
    • 19th May 17, 10:21 PM
    FTB - Will this work? 19th May 17 at 10:21 PM
    Hi All,

    I am hoping to buy a new build using Help To Buy (London). As it stands, the property I am looking at is around £363,000. I have a deposit between £20-25k.

    The question I have is that my new job starts in March 2018 and the salary changes in both the first (£43k), second (£49k) and third year (£80k). The new build is due to be completed in June 2018 (first year of employment). However, because it is likely that I will need to reserve the property and place the deposit by Mid November 2017, before I start working, is it possible to provide mortgage providers with a letter from my future employer regarding the salary in both first and second year, and will this be acceptable?

    Further, I think my 1st year salary may not be enough to cover the amount i need (I have checked the HTB Gov Calculator), but my 2nd year salary does, which kicks in a little time after the property is due to be complete.

    Do you think there is anyway this might work, or am I simply going to have to pass on this new build development despite it being perfect for work/living purposes?

    Many thanks for any help and apologies for the length of this!
Page 1
    • katebl
    • By katebl 19th May 17, 10:56 PM
    • 605 Posts
    • 286 Thanks
    katebl
    • #2
    • 19th May 17, 10:56 PM
    • #2
    • 19th May 17, 10:56 PM
    Pass on it, and be grateful when you have a decent salary behind you and are buying an equivalent flat in a couple of years time for less money. New builds in London are going to be ten a penny when the current developments complete and if you think being given a 20% loan to buy one isn't desperate enough now wait and see how hard they will be to shift then
    • katebl
    • By katebl 19th May 17, 10:58 PM
    • 605 Posts
    • 286 Thanks
    katebl
    • #3
    • 19th May 17, 10:58 PM
    • #3
    • 19th May 17, 10:58 PM
    Out of interest at what rate are you adding to your deposit considering you don't have the job yet?
    • shaminc3
    • By shaminc3 19th May 17, 11:42 PM
    • 3 Posts
    • 0 Thanks
    shaminc3
    • #4
    • 19th May 17, 11:42 PM
    • #4
    • 19th May 17, 11:42 PM
    Hi, well my hope is to avoid renting entirely purely as the level of expenditure feels like a black hole to me.

    My hesitance with the new builds really rests on ground rent/leasehold charges but ability to buy using the government 40% support and 5% deposit rate does appeal - especially considering the location of the property. Though I do get your view point with these developments as they continue to flood the market.

    I have been working previously for a bit which has meant I've been able to save a large portion of income, along with support from the Bank of Mum and Dad to gift a portion for a deposit.

    What other options would you suggest if not the current scheme from the Gov. ?

    Thanks
    • Lilla D
    • By Lilla D 20th May 17, 6:43 AM
    • 316 Posts
    • 161 Thanks
    Lilla D
    • #5
    • 20th May 17, 6:43 AM
    • #5
    • 20th May 17, 6:43 AM
    The most obvious alternative is to consider shared ownership, where you could buy a share that you can comfortably afford. This is available for both new build and older properties, so you could avoid the above discussed uncertainty around new build prices. Then again, there is no guarantee for prices in general, especially with Brexit coming up...

    What is your income until March 2018? You could buy a share based on that and then once your salary increases, you could buy further shares or even the whole 100%.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • csgohan4
    • By csgohan4 20th May 17, 8:03 AM
    • 3,962 Posts
    • 2,470 Thanks
    csgohan4
    • #6
    • 20th May 17, 8:03 AM
    • #6
    • 20th May 17, 8:03 AM
    The most obvious alternative is to consider shared ownership, where you could buy a share that you can comfortably afford. This is available for both new build and older properties, so you could avoid the above discussed uncertainty around new build prices. Then again, there is no guarantee for prices in general, especially with Brexit coming up...

    What is your income until March 2018? You could buy a share based on that and then once your salary increases, you could buy further shares or even the whole 100%.
    Originally posted by Lilla D


    Personally I would avoid Shared ownership, imho it is a scam, you may not be able to increase your share due to increase in value or income levels.


    Your limited to selling to a smaller group and whether you own 10% or 50% you pay ALL the costs of maintenance.


    I would also try and avoid leasehold if possible, especially those with ground rents doubling every 10 years.


    There is nothing wrong with renting in the short term, I rented for 8 years before I bought my house, dead money I guess, but your paying for a service, a roof over your head
    Last edited by csgohan4; 20-05-2017 at 11:41 PM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • shaminc3
    • By shaminc3 20th May 17, 1:11 PM
    • 3 Posts
    • 0 Thanks
    shaminc3
    • #7
    • 20th May 17, 1:11 PM
    • #7
    • 20th May 17, 1:11 PM
    Thanks for your advice all.

    I think I may take more time to weigh up other options as I would very much prefer to have a freehold purchase without the hidden hassles that leaseholds present.

    The problem is trying purchase an 'old-build' (for lack of better phrasing), without the support that the government scheme does offer. I may just consider saving up for a while longer and rent in the meantime.
    • poppy10
    • By poppy10 20th May 17, 2:27 PM
    • 5,896 Posts
    • 7,135 Thanks
    poppy10
    • #8
    • 20th May 17, 2:27 PM
    • #8
    • 20th May 17, 2:27 PM
    Agree shared ownership is a scam, avoid
    Signature changed by MSE ForumTeam
    • Lilla D
    • By Lilla D 20th May 17, 5:45 PM
    • 316 Posts
    • 161 Thanks
    Lilla D
    • #9
    • 20th May 17, 5:45 PM
    • #9
    • 20th May 17, 5:45 PM
    I guess everyone is entitled to their opinion

    Whether someone believes in it or not, shared ownership has helped many buyers who wanted to live in a certain area, but couldn't buy there another way. Yes, they could have saved longer and/or buy in a different area, but if they made an informed decision about the pros and cons and decided to go for it, then I'm not going to judge them for it regardless of my personal preference.

    It remains an option, just like the Help to Buy or Right to Buy schemes, which also divide opinion. Are they also scams? Some might say so, but it doesn't make them go away.

    Csgohan4 mentions valid points that will have to be considered - prices not going up, income not being enough to staircase, restricted resale options and that leases come with restrictions. All true and will have to discussed. But "scam" might not be the right word imho.
    Last edited by Lilla D; 20-05-2017 at 5:52 PM.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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