First time buyer - worried - advice!

Ali_Netball

Hi All,

I am a first time buyer looking at a property for 195K

I am a key worker earning 27000 per year (going up to 29600 in Sept). I am looking to get a key workers loan for approx 50-60K and a mortgage of about 130K.

My partner who has started his own business will be living with me is currently just breaking even and hoping soon that he will be taking home a wage. So hopefully in the near future can can contribute. His name will not be on anything - everything is in my name!

Is this a possiblilty?

Thanks
Ali

poppysarah

And when do you pay KW loan back?

Do you not think it's insane that house prices are SO high that you have to take TWO loans out?

Ali_Netball

I know it's disgusting! It's nothing major either only a little 2 bed place!

Pay the loan back when I sell the property.

ajay_182

What deposit do you need for a mortgage like that? Sounds like high payments on a wage of 27k.

Ali_Netball

my keyworkers loan acts as the deposit I believe. I have 10K to put to it too.

I am gonna get a interest only mortgage for the near furture at an interest rate between 3.39 and 4.5%

poppysarah

Ali_Netball wrote: »

I know it's disgusting! It's nothing major either only a little 2 bed place!

Pay the loan back when I sell the property.

And if you never sell the property?

Ali_Netball

I believe I pay interest on it of 1.75% going up but a very small percentage yearly based on price index until you can pay it off! No fixed timelimit

I plan to have a family some day so doubt a 2 bed place will be enough indefinatly anyway ( but I gather you were asking hypertheticallY)

ajay_182

Ali_Netball wrote: »

my keyworkers loan acts as the deposit I believe. I have 10K to put to it too.

I am gonna get a interest only mortgage for the near furture at an interest rate between 3.39 and 4.5%

Oh right, that would be a huge deposit then. Im a key worker and found the schemes they have are not always what they seem. Make sure you do your homework and make sure you can really afford what your doing. I would go for a cheaper property myself, as its a first house and have a repayment mortgage and even overpay if and when I could. Good luck tho!

poppysarah

Interest only? What a great idea. That's the same as renting you know. Oh apart from you pay for repairs and if you stop paying the "rent" then you get repossessed.

You're buying a share of a property you can't afford and then only having an IO mortgage.

On behalf of the UK tax payer I'd like to say I look forward to bailing you out in about 6-12 months.

ajay_182

Lol, well said poppysarah. You could be wrong tho, maybe 12-18 months?

Blacksheep1979

can I ask who's giving you a mortgage of 4.8 times your salary?