First time buyer - worried - advice!

bob79

Ali_Netball wrote: »

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.

Is this a possiblilty?

If 27k is your before tax income, then no it isn't. The mortgage would be 4.8 times your before tax salary. Certainly with the interest on the key workers loan added to the mix, you should not exceed 3.5 times your before tax income.

So if 27k is your before tax income then getting a mortgage higher than 95k would be madness.

geoffky

you are crazy...do not buy a share in a house...because when houses are cheaper who wants a little bit of one...

Annabanana1980_2

Sounds to me like you've really been thinking about this - if you've really thought this through i say go for it! Once you're on the ladder its easier to move around. IO is an ok way to start but just make sure you seriously concider the options of repayment as it might only be a little bit more.
Someone else said about bailing you out in a few months? that wont happen if you are really incharge of your finances and dont let it happen. Make sure that you make a list of absolutly everything that is going out of your account and what is going to be going out when / if you purchase. That way you know what you're letting yourself in for.
The first place we purchased we had a 105% mortgage... one of the northern rock ones!!! but it worked for us! We have paid back loads and are now moving up the ladder. Just make sure that you take the time to look at how much this is costing per month. You'll only be fooling yourself if you dont.... you only have yourself to answer to at the end of the day.
Good luck with everything... :-)

tifnstav

am i seeing things?
annabanana giving advice to a FTB to "go for it!" on one thread while at the same time worrying about where her deposit is coming from on another thread?

to the OP, does you mortgage lender know you intend to take out an additional loan as well as their mortgage? i'd be interested to know if they think you would be worth lending to given the amount of debt you intend to acquire on the basis of a hypothetical payrise.

llh189

I am using a very similar scheme to yours even though I am not a key worker, my scheme allows a 50/50 funding split - even with this on 27K you still might struggle to get a mortgage. I live in the south east and a two bed cost about 150K.

When I applied to the scheme I was given a list of F A who had experience of the scheme maybe you contact your local scheme and get a list of the F A's who could help you.

ModernSlave

If you want to sell the place can you sell it on the open market to anyone or do they have to be an approved FTB like yourself? That could severely limit any potential buyers, particularly if the market carries on dropping and FTBs can afford ordinary properties without having to jump through hoops.

IMO 4.8 x salary sounds like an October 2007 type of mortgage but like many FTB people who post on here asking for advice it sounds as if you've already made up your mind to go ahead.

Good luck and I hope your OH's business really takes off to provide a bit of extra financial padding.

Annabanana1980_2

tifnstav.... yes worried about deposit as never realised we needed one for the sale/ purchase and we do not have £20 grand knocking about!!
As for Ali_Netball ''going for it'' did you read the rest of my post? it was literally if they have thought things through and its right for them.. why not?
Anyeay... Ali_Netball i really hope things go the right way for you..... a little poem i like which kinda sums things up...

When you get what you want in your struggle for self
And the world makes you king for a day,
Just go to the mirror and look at yourself
And see what that man has to say.

For it isn’t your father or mother or wife
Whose judgment upon you must pass.
The fellow whose verdict counts most in you life
Is the one staring back from the glass.

You may be like Jack Horner and chisel a plum
And think you’re a wonderful guy.
But the man in the glass says you’re only a bum
If you can’t look him straight in the eye.

He’s the fellow to please-never mind all the rest,
For he’s with you clear to the end.
And you’ve passed your most dangerous, difficult test
If the man in the glass is your friend.

You may fool the whole world down the pathway of years
And get pats on the back as you pass.
But your final reward will be heartache and tears
If you’ve cheated the man in the glass.

Ali_Netball

Thanks for the insults guys! Not really what I expected from a site that has been helpful and supportive in the past!

Made me feel really good!

Thanks again! :mad:

tifnstav

i don't get what the poetry proves at all.

i think you may be biting off more than you can chew and you should consider whether taking on £180k ish worth of debt is sensible on just your earnings.

don't worry, i'm sure someone will be around with all that (((hugs))) stuff soon enough to give you the answer you actually want.

Blacksheep1979

Ali_Netball wrote: »

Thanks for the insults guys! Not really what I expected from a site that has been helpful and supportive in the past!

Made me feel really good!

Thanks again! :mad:

just because it's not what you want to hear doesn't make it bad advice...