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Wannabe 2nd time buyer - advice needed
Goku2010
Posts: 11 Forumite
Hi all,
in 2005, I went on a shared ownership scheme and purchased 40% of a 2 bed flat at the time selling for £195,000, meaning a mortgage around about £76,000 at the time.
Each year the rent has been creeping up, and now my 3 year fixed rate is coming to an end imminently - that combined with a couple of other factors have started my wife and I thinking about moving on and buying somewhere 100%.
We're on one income, mine, she's a homemaker and we have one daughter... we have no savings at present and have been on a DMP for about 3 years too....meaning I have a few defaults (all my debts).
In this current climate, its easy to feel trapped, and at the moment, we do.... poor credit means we wont get a mortgage or at least one with a decent rate... no savings means we'd have to take out a 100% mortgage, again, how likely is that in the current climate?
To sell up, we have to give the housing company a few months to try and sell our share of the flat, if they can't manage that then we have to buy it 100% and sell it on the open market as if it were a normal house. So it probably won't fetch as much as it was worth 3 years ago which would be ok if we wanted to stay there, as we end up with a smaller mortgage, but to sell from then on, we end up having to pay back the mortgage....
I'm looking for some general advice on what to do....I'll no doubt seek some help from a broker perhaps, but I'd really value your opinions.
Thanks as always,
Goku2010
in 2005, I went on a shared ownership scheme and purchased 40% of a 2 bed flat at the time selling for £195,000, meaning a mortgage around about £76,000 at the time.
Each year the rent has been creeping up, and now my 3 year fixed rate is coming to an end imminently - that combined with a couple of other factors have started my wife and I thinking about moving on and buying somewhere 100%.
We're on one income, mine, she's a homemaker and we have one daughter... we have no savings at present and have been on a DMP for about 3 years too....meaning I have a few defaults (all my debts).
In this current climate, its easy to feel trapped, and at the moment, we do.... poor credit means we wont get a mortgage or at least one with a decent rate... no savings means we'd have to take out a 100% mortgage, again, how likely is that in the current climate?
To sell up, we have to give the housing company a few months to try and sell our share of the flat, if they can't manage that then we have to buy it 100% and sell it on the open market as if it were a normal house. So it probably won't fetch as much as it was worth 3 years ago which would be ok if we wanted to stay there, as we end up with a smaller mortgage, but to sell from then on, we end up having to pay back the mortgage....
I'm looking for some general advice on what to do....I'll no doubt seek some help from a broker perhaps, but I'd really value your opinions.
Thanks as always,
Goku2010
0
Comments
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I think you would be better staying where you are its unlikely you would get a mortgage with your current credit history
No harm checking with a broker though0
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