Help! Advice please...from scratch!

W*W

Hi everyone,

I am 31 years old, currently living with parents and desperate to get on the property ladder. I earn £18,500 a year, have £4 k saved with an adverage credit rating (I dont know officially but in the last 2 years i have missed a couple of credit card payments-but all up to date and pay on time within last 6 months and no 'freeze' on the card etc).

I have a £1000 k overdraft and £750 on a credit card. Should I use some of my £4k savings to pay either of these off, or will they not affect getting a mortgage too much?

I am aware of the state of play of the property market at the moment, regarding the difficulties facing FTB's getting mortgages, needing bigger deposits etc but staying at home is not an option for me.

My parents are looking at 'lending' me money for a deposit-possibly £15k. (We would come to some kind of arrangement regarding pay back, possibly keeping it as a 'share' in the property, or giving it back in years to come when remortgaging/moving etc).

We are also looking at the possibility of parent and myself having a joint mortgage-to get the benefits of being a higher earner than me, better rates, less chance of being declined etc, though I would make all the repayments myself. Would this be a good idea? Basically we are just looking at ideas and ways we can get me on the property ladder as easily and cheaply as possible!

I have been told that a lot of new build sites will reduce towards the end of the year to get rid of properties-I wondered how true this was.

I would much prefer not to rent but if its my best option I will have to reconsider.

I have seen mortgage advisors in the past (part of estate agents) but have no idea if this was whole of market or not. How do i find a whole of market mortgage advisor?!

Any help or advice would be greatly recieved! As you can probably tell I'm new to all this and just trying to find out where to start on the long and winding road of being a home owner.......

Many thanks

poppysarah

Pay off your debts. Save more.

If you don't want to live with your parents then move out. There are other options than buying a house.
You're not in a brilliant position financially to buy though. Certainly not at current prices.

teaspoon1

W*W

Can I just say WOW.

I just has to check the date of your post to make sure it wasn't two years old!!! It reminds me of the posts I saw at the peak of the boom where people were utterly desperate to 'get on the ladder' with help from parents etc.

Have you been watching the news at all? I ask that in all seriousness. Go and read up on everything economic. Save a LOT more (you are living at home, which will help). Think about how secure your job is. What job do you do? Could you be made redundant? Wait it out - house prices are falling so you have plenty of time to buy. Do not buy now and plunge yourself AND your parents into negative equity.

Can I ask how they were planning to lend you the £15K? Was it from their savings or 'releasing equity'? Would they be happy if it was immediately swallowed up by a fall in the price of the house you want to buy?

Really, I would advise you to stay at home and save like mad - or move out and rent and see how you cope with bills on top of living expenses. When you have more savings in a year or two, house prices will likely be a lot lower - so you will get a far better house for your money or have a lovely short mortgage that is manageable on your salary.

Good luck.

p.s. yes, pay off your debts. It will give you a better credit rating.

JimmyTheWig

W*W wrote: »

desperate to get on the property ladder.

Can I ask why?
I ask because now would generally be considered a bad time to get on the property ladder. With your income, debt and history I think a mortgage would be difficult. Where abouts in the country are you (in terms of house prices)?

Have you always lived with your parents, or have you been away and come back again?
Would you consider renting a room in a shared house? Maybe with workmates, etc?

neas

indeed a house share with other adults/professionals would cost about 300 quid with bills included in my area.... allows you freedom, friends and your own space too... and the ability to save faster for house.

Move into a house share for a year or too... sit back and relax as house prices get cheaper for the next 2-4 years!.

W*W

Teaspoon 1- My job is safe, well as safe as any job can be. I work for the NHS and no talk of redundancies.
My parents have various savings and would use the money from one of their accounts.

Jimmy The Wig- I think at my age most people feel the same regarding living with parents-I need my own space and idependence etc. I need to move out as soon as possible. I have looked at the possibilities of moving in with friends but thats not really possible-some have their own place already, some have partners and are looking to move in together. Not really anyone single and in the same situation as me willing to share.

Thanks for the advice guys! Keep it coming .....

GDB2222

I can only add that, yes, I would pay off the overdraft and credit card. Using those as a form of finance for house purchase is far too expensive. Living at home with parents, surely you can save nearly all your salary? If you really must move away from parents, then sharing would be a great way to do it whilst still allowing you to save a fair bit.

teaspoon1

W*W wrote: »

Teaspoon 1- My job is safe, well as safe as any job can be. I work for the NHS and no talk of redundancies.
My parents have various savings and would use the money from one of their accounts.

Jimmy The Wig- I think at my age most people feel the same regarding living with parents-I need my own space and idependence etc. I need to move out as soon as possible. I have looked at the possibilities of moving in with friends but thats not really possible-some have their own place already, some have partners and are looking to move in together. Not really anyone single and in the same situation as me willing to share.

Thanks for the advice guys! Keep it coming .....

Have you considered moving in with strangers? Lots of people do it - I have a couple of times and we are still friends even though we no longer share a house. It can be great for widening your social circle!

Of course, it can be a disaster but so can moving in with your OH. :rotfl: Just check them out as best you can beforehand. And if it goes completely wrong you can always move out.

Do you want to post an SOA so we can see where your money's going? How much do you give your parents each month? You should be able to save a lot while living at home.

poppysarah

teaspoon1 wrote: »

Have you considered moving in with strangers?

Strangers are only friends we've not met yet.

teaspoon1

p.s. in what capacity do you work for the NHS? If you're a doctor/nurse etc, you will be safe. If you're an administrator/manager, perhaps not quite so safe. There is plenty of talk of slimming down the admin/non medical staff in the NHS. Just a thought.

W*W

I am really not keen on moving in with strangers-I want to move out so i dont have to share a house with 2 other adults any more, not move in with another bunch! I love my parents just dont want to live with them anymore!

Yes Im an administrator for NHS. There was talk of redundancies a couple of years ago but my job is 'safe' for the foreseeable future. I feel pretty secure and there is no 'talk' of any redundancies etc in my NHS trust.

I pick up £1200 per month, save £550, pay my parents £70 board (lucky I know!) my only other outgoings are running my car (about £50 a month petrol) mobile phone bill- £50 or less per month and then aprox £40 CC repayments the rest is either saved towards holidays/christmas/emergencies and shopping and social life (yes I know this will have to be cut back once I move out!)