no replies

mary4kids · 5 March 2009 at 3:56PM

This post going to deleted. So no replies please.

russelsprout_2 · 5 March 2009 at 4:18PM

Don't even bother looking at house prices yet.

Put the application in, wait for their approval or refusal. Then you'll speak to one of their recommended IFA's who'll do the budget process with you. It helps if you've already done this and are totally honest with all your finances.

Once the budget planning has been agreed with the IFA they'll send a report off to the housing association you applied to. You'll hear within a few days if you got funding or not. It's with this letter that you'll see how much equity they'll lend you AND what the maximum house price is you can buy.

So long as there are properties in your area that meet your criteria (the HA sort of checks this anyway to base the finances on) then you can go house hunting, discuss mortgage details with the IFA, put offers in and actually start the house buying process.

Will probably take a few weeks to even get somewhere and more like months before you can buy. Current funding has run out in most, if not all areas but more is being made available in April. Because of this there might be a back log applications so the whole application process could be quite lengthy.

A rule of thumb is the LHA's on MCHB work on around 3.5 times single salary minus outgoings, probably less for a couple so that might help you do some rough calculations.

£150,000 buy price
£30,000 20% equity loan (works out at £44 per month for the first year)
£120,000 mortgage

Mortgage @ 3 times salary would mean you'd need to have joint income of at least £40,000. Quick fag packet calculation says about £660 a month for the mortgage so with the equity loan repayments you're looking at around £700 a month total.

maninthestreet · 6 March 2009 at 11:32AM

I'm puzzled - why, with only a 3 bedroomed house, have you chosen to have 4 children? And why not sell that car you bought for £27,000 ??

Wickedkitten · 7 March 2009 at 10:57AM

Yeah, why not just rent a 4 bedroom house if that's what you need?

Trying_to_be_good · 7 March 2009 at 3:18PM

And you will be liable for the maintenance and the buildings insurance and various other bits I've forgotten about - ensure you're comparing like with like. House prices are likely to fall further yet, so it isn't the best time to buy (yet).