advice on mortgage please! :)

freebie_junkie

hi, me and my partner have our name down for a join ownership flat that will be finished hopefully by 2008- weve not put any money down yet as half of it will be owned by irwell valley housing assosiation

by then my other half will be earning £25,000 but ill still eb in full-time education the flats are provisionally valued at £90,000 coz theyre in teh centre of bolton

so in a joint ownership do we need a mortgage of £45,000? would we need a deposit? can we borrow more for furniture etc.?

thanx

Doozergirl

You should be speaking to a mortgage advisor!

You will potentially be able to borrow the full £45,000 but you will need money to pay for solicitors fees etc. It would be better for you to have some kind of a deposit, as you will get a better rate of interest.

I very much doubt that you'd be able to borrow any more as the most you can borrow is 100% of the value of your share of the property.

AndrewSmith

Hi,

Most lenders will lend you up to 95% of your share, but there are a few such as Lambeth B/Soc and Leeds B/Soc who will advance you the full 100% of your share.

It will not be possible to borrow extra for furniture etc, and, as Doozergirl correctly states, you will have to find solicitors and survey fees.

I would suggest you contact a local mortgage broker and discuss the scenario fully with him/her.

Hope this helps

Andy

*Sparkle*_3

If your going to apply for a shared ownership scheme, normally the housing association ask's that you meet certain requirements.
When i got the shared ownership scheme, the requirements were that we earnt a certain amount and that we had savings of at least £2000 and thats just for fee's,stamp duty etc, you wont need to pay stamp duty so thats a big chunk taken out.
You will need a deposit for your mortgage, we got one with abbey and put down 5%.

Also if you ask the association the shared ownership is with you should be able to get a infomation pack.

Ian_W

freebie_junkie,
It's 2 years away, so set yourself a target for SAVINGS, rather than think about borrowing the money for your furniture.
It's good discipline because when you get the property you will find you need more than if currently renting and far more than if living at home with your parents.
BoL, seems like something very good to look forward to.

freebie_junkie

im currently on incapacity benefit and i go uni part-time just start my second half of my 2nd year in feb and living in a council flat but im hoping to ba able to come off it by my third year at uni and be full-time, but that deosnt leave much time for savings, hence why i ask. im really good with money but only getting a bit a week doesnt help much with the old savings bit as seen as im still a bit in my over-draft from when i moved in my flat (i previosly lived in a hostel) coz when u move in there isnt even any wall paper or carpets! i used to owe teh bank £1250 and now its down to £300 on an interest-free over-draft which in 18 months saving i dont get much money hardly i think is really good, (or you might not!) me and my other half want to move in togteher but he cant afford to move in with me yet coz he just got his first car so he lives at home with his parents, (lucky !!!!!! i say!) but we both also want to move to bolton coz thats where i study and where he works, ive put myself on teh choice-based lettings list for bolton council, (coz my council bury- and bolton are really close so have a lot of links with housing and such) so i was wondering if it would just be easier all round to find a property in bolton to rent from teh council, (after a year you get tenture so its basically yours unless you are a nusiance etc. and also you have teh option to buy in teh future if you want), and the council can give you a really low-cost loan plus vouchers for B&Q to decorate and furnish it, (coz some of my stuff will be on its last legs by then and also i dont have enough furniture for two people- also my dad is a builder and decorator and he will be able to do a really professional job for me for pennies coz weve managed to make up now!) so is that teh best route? im so confused! i know all about being a council tenant but no nothing about buying- its so confusing!

thanx so much for all the advice so far, and plase any more would be greatly appreciated!

*Sparkle*_3

My advice would be to stay with the council for the time being, as you need to be earning to afford a mortgage.

The council have some great scheme's, in london they do a scheme where if you have a 2 or more bed and depending on how long you've lived in the property they pay you to move out and go into the private market eg.buy. they can give thousands of pounds!
There are certain terms and conditions but it just shows you, plus like you mentioned there is the right to buy scheme with great discount.

Also there are other scheme's that are available to you if you are a council tenant, check with your local council, but another one i've discovered is homebuy where they give you 25% of the property purchase price and only you sell up you pay them back.And you can choose anywhere to live.

Also you can try and exchange with another council tenant in the area you would like to move to?

best wishes

freebie_junkie

like i said, my partners earning but its so difficult to get on teh property ladder now with student debts etc.

weve been talking and coz he works for the council he knows all about the new developments going on in bolton and theres gonna be a new council-owned build right next to these other ones youve got to buy half of.

theyre gonna be 2 bed and choice-based lettings only and by teh time theyre finished ill be full-time at uni and we would have been on teh list fro 2 years at least, (longer on teh list for choice based means more likely to get one) and also they take youre disability into account also.

theres no scheme liek teh london one in bury as theres a lot of empty properties here and prices are relatively low.

if i was goping to move somewhere id want it to be for keeps or at least fro a long time and i never want to live in a house again- far too convenient in flats!

well, anyway weve made our minds upo to do that and we thought that in addirtion to trying to put a bit away we will get stuff we will need when we see it in sales or in pound shops or whatever, bit by bit and hide it in my flat!

thanx for all teh advice. i think ill leave owning a home until later im only 22 and i was reading that they average age for first-time buyers is now 31 so i reckon ill be ok to rent from the council coz its not like chucking your money away like a private landlord, also they cant tell you to move unless your a bad tenant and you can decorate it however you want, (i still have nightmares of my fellas student house which i called the house where furniture goes to die!) oh and finally, all youre repairs are done for you, before christmas i had to have an electrician out once and a plumber out twice it cost me nothing but would have cost £1000+ if i owned the flat! :P