Will we ever get a mortgage?

CHARDONNAY_3

After being declined for a co-op mortgage through Ownhome Scheme we were initially upset, but now see it as a blessing, as these schemes are just another way of the government keeping house prices artificially high.

However we are engaged and plan to marry in 2010.

We really want to own our own home buy then and feel that prices will be somewhat cheaper. However I now worry if we will ever be able to secure a mortgage.

My partner's mum said she would act as guarantor - would this make much difference as to whether a bank would lend to us or not?

We would ideally like to buy in 18 months and will have min £10,000 deposit. Houses we like currently cost approx £99000 (but hopefully will drop) and we earn approx £24000 combined.

Need some encouraging advice as it's all starting to sound like a bit of a pipe dream

wymondham

Sounds like an excellent plan to me, save and then buy nearer the wedding, for a bigger place for less money..... Don't get down about it, it will all be worth it!!!!

Incisor

CHARDONNAY wrote: »

After being declined for a co-op mortgage through Ownhome Scheme we were initially upset, but now see it as a blessing, as these schemes are just another way of the government keeping house prices artificially high.

Good for you!

However we are engaged and plan to marry in 2010.

We really want to own our own home buy then and feel that prices will be somewhat cheaper. However I now worry if we will ever be able to secure a mortgage.

My partner's mum said she would act as guarantor - would this make much difference as to whether a bank would lend to us or not?

We would ideally like to buy in 18 months and will have min £10,000 deposit. Houses we like currently cost approx £99000 (but hopefully will drop) and we earn approx £24000 combined.

Need some encouraging advice as it's all starting to sound like a bit of a pipe dream

OK 3.5 * salary = £84,000 plus £10K deposit = £94,000. You are £6,000 short. On today's figures. Once you set your mind to it, everything will look more favourable than this as time goes by. £2,000 salary increase by 2010, and you will be there. That's without calculating anything for further house price drops.

van_persie

The tightening of mortgage lending criteria has highlighted one thing, and one thing only - HOUSE PRICES ARE TOO HIGH.

Why the media chose to focus on the notion that stricter lending is damaging to first-time buyers is beyond me, considering the rate at which house prices are falling and will continue to fall.

You are in a position where you're stretching yourself to buy and will most certainly, in my opinion, be able to buy a similar property for AT LEAST 30% less simply by waiting...

..so why won't/can't you wait?

CHARDONNAY_3

Thank you for 1st 2 replies.

As for van persie, did you miss the last part of my post?

I think 18 months constitutes waiting - so yes I will/can wait!

It annoys me that some people jump on 1st time buyers like they have no right to want to own a home. Yes, I appreciate there are some FTB'S out there who think buying right now is still a good idea, but there are some of us who work hard and are prepared to wait a short while - so give us a break!

Incisor

CHARDONNAY wrote: »

Thank you for 1st 2 replies.

As for van persie, did you miss the last part of my post?

I think 18 months constitutes waiting - so yes I will/can wait!

It annoys me that some people jump on 1st time buyers like they have no right to want to own a home. Yes, I appreciate there are some FTB'S out there who think buying right now is still a good idea, but there are some of us who work hard and are prepared to wait a short while - so give us a break!

I think you are jumping on van persie a bit hard. As I read that post, it is basically saying don't stress about getting a house - you are worried about getting a mortgage - but van persie says that the limited credit available is in your favour beyond the short term and into the mid term.

This is the point at which many in your position give up hope of buying in several years, so they plan to rent, forget about saving and spend it all on cars and holidays. Well, if you save, you will be ahead because you will have a deposit. And as van persie is trying to explain, if you wait, you will also be ahead, because the current credit squeeze works for you.

van_persie

CHARDONNAY wrote: »

Thank you for 1st 2 replies.

As for van persie, did you miss the last part of my post?

I think 18 months constitutes waiting - so yes I will/can wait!

It annoys me that some people jump on 1st time buyers like they have no right to want to own a home. Yes, I appreciate there are some FTB'S out there who think buying right now is still a good idea, but there are some of us who work hard and are prepared to wait a short while - so give us a break!

Apologies - I was just picking up on the initial comments you made about having applied for a mortgage and wanting to buy somewhere by the time you got married in 2010, implying you'd like to buy sooner rather than later...
And I am certainly not jumping on FTBs - I simply feel they've been brainwashed into buying into a volatile and over-priced market by media, family, friends, etc. In fact, they hold they key to the housing market (after all, it's a pyramid scheme propped up from the bottom, not suspended from above); the irony is, if all FTBs stopped buying 2 years ago, we'd have had the crash then, rather than 2 more years of house price inflation caused in large part by FTBs leaping lemming-like into home ownership (now in negative equity). The credit crunch was the catalyst for the crash, not the cause.
Depending on your views of how long the crash will last allied with how desperately you want to own a home, I'd say wait 2 years MINIMUM before even looking to buy.
In the meantime, save a little more, enjoy the freedom and burden-free life of renting as prices fall and good luck for the wedding!

lonestar1

Incisor wrote: »

Good for you!


OK 3.5 * salary = £84,000 plus £10K deposit = £94,000. You are £6,000 short. On today's figures. Once you set your mind to it, everything will look more favourable than this as time goes by. £2,000 salary increase by 2010, and you will be there. That's without calculating anything for further house price drops.

Make sure you include at least 5k for legal/moving fees and making the place a home i.e, basic furniture etc (ideally ringfence 10k if you can)

poppysarah

If you can save more than 10k in 18 months you'll be in a much better position. Have you saved for the wedding or will that be on top of this amount?

CHARDONNAY_3

My apologies to Van persie if I came down a little hard - it gets a bit frustrating sometimes!

I am prepared to wait min 18 months but defo would like to begin our married life in a home of our own, so spring 2010 is the goal.

We have a separate wedding fund - we are planning to get hitched abroad which we will pay for ourselves then our mums are paying for a party for us when we get back so all our friends who can't make the wedding can come along.

Taking wedding fund into account, doubt we will be able to save more, but I do occasional bar work and may take on a xmas shop job to earn extra cash for the fund. Have also been looking at up your income board for more ideas.