Dont Know What To Do. Help!

IvanDrago

Hi all,

ive been renting a flat with a friend for 3 years at £400 pcm bills inc.

but weve just been given til the end of september to get out.

ive got £6k in the bank and had a mortgage arranged for 85k but i pulled out of buying the house.


but ive got 3 options
1. buy a house (friend lodges)
2. rent another house with friend
3. buy a house together


i dont know whether to rent and save up more for a deposit because i was reading that lenders will want 25% deposit which is impossible for me to get.

im in a dilemma

mpsavuk

"i dont know whether to rent and save up more for a deposit because i was reading that lenders will want 25% deposit"

I think you've answered you own question there?

As house prices drop it means you will benefit because you'll need less deposit to save up to reach that magic 25%. So you should be able to save it quicker.

Option 2 is your best way forward for now IMHO.

ceebeeby

2 for me too - on a 6 month lease only! Keep saving, speak to friend to find out if they could also save if you wanted option 3. But don't rush yourself into buying today.

Goodluck

IvanDrago

im going to look at a house tht is up fot 89,950.

if i like it i might make an offer of 80k

i dont think i could save up another 10k in a year so may aswell buy now before i cant get a mortgage

Mickyfinn

You could Rent Whilst Buying. If you contacted a Landlord in your area offering a house for rent with the option to buy you could get on the property ladder. These opportunities are popping up as lenders are tightening their lending criteria.

Landlords will allow you to move in to one of their homes with a small deposit (less than the banks mandatory 10%) with some of the rent going to buying the house as a rent credit and the opportunity to buy at a fixed price, agreed at the start.

This offers the advantage of TIME, which is the key to getting people struggling to get a mortgage, onto the property ladder.

Time to clean up your credit.
Time to save a deposit.
Time to try before you buy.
Time to recover from bankrupcy.
Time to recover from repossession.
Time for the market to improve.

If house prices fall, you can choose not to buy (at the end of the 2yr term) and although it would result in you losing your 3% deposit and your monthly rent credits, it would be far cheaper than the traditional method of buying a house (no stamp duty if you change your mind, no survey fees, no redemption penalties etc.) If the prices rise all of the increase is yours to keep.

Its like buying a car on finance, but with a house.

N.B. Yes I do have my own business that gets first time buyers onto the property ladder, so I am biased but I see the benefit for everyone so I'm keen to discuss the concept. It's very popular in the USA - the UK Market is behind the times compared with America.

Hope this was useful

Micky:idea: