Whats the best way?

desperateforahome

Hi all, Im new to this but have been lurking for a while and now Im after some advice.
Me and my partner are looking to buy a first home together. were not on brilliant wages, and have no means for a deposit for a house.
I have been reading about vendors deposits where by the building company pay your deposit for you, or the homebuy government scheme. And quite frankly im so confused by it all. I did a mortgage checker on halifax to see what we were looking at, and it as £70,000 mortgage, which isnt great.

Does anyone know of means or ways to get a decent house or new build with this sort of mortgage and no deposit?? Or is it a case of if pigs can fly....

Were desperate for a home, and just want to know how is the best way, is there anyway....or no way at all apart from to rent?!

We just need advice were clueless...is there ayway of getting a better mortgage than that?

I know its a lot of questions but I just thought there might be home oweners or people in the know who may be able to shed some light for us!!

Thanks

poppysarah

You need to earn more or spend less and work out how to save some money.
have you registered with the council as a council rent will be cheaper than private?

Life is hard but a 70k mortgage should be more than enough to buy a place - you've just got to wait for prices to drop a bit more. High house prices are utterly insane.

Cliveski2009

Given your circumstances I would say forget about it for now.
Sorry if it sounds harsh but if you can't save for a deposit what hope do you have with unexpected household bills and so on? also now is a bad time to join the first step of the property ladder - prices are still dropping.
Why not approach some housing agencies?

19jeni89

hi there

me and my boyfriend are in the same situation as you our wages aren't great - i am still studying and working near enough full time whilst i am on my course we thought there was just no hope........ UNTIL homebuy direct. I was very wary of this scheme as I wasn't keen on the idea of shared equity but looked into it and actually it is really good I spoke to my dad who is extremely sensible and knowledgable with money and he also thought it was good. we have now reserved a newbuild house (something i was also wary of!!) for £75,000 and getting a £52,500 mortgage - the good thing is the payments are so low we are going to save in the mean time to make up the 30% - be it the house could have increased in value and we might not have enough but it sure gets us on the ladder and sets us up for our second home. Need anymore info just let me know x

superfran_uk

Don't get yourself into something you can't afford. A mortgage is a big thing to take on and if you aren't on great wages you could end up in a lot of trouble if you find that you can't pay.

The homebuy scheme could be good for you and your partner if you earn between 20 and 60k, however you should be aware that even if you are accepted on to the scheme there is no guarantee of funding until you've had an offer agreed and they've approved it, you will have to stick to their criteria i.e. just 2 beds unless you have kids, and you will be expected to have £4000 in savings to cover costs, if you can't prove you have this then you will not be considered.

19jeni89

Superfran you don't need £4000 in savings its a minimum of £2000 - obviously 4 is better though.

Yes a mortgage is a big thing buy as long as your sensible and dont stretch yourselves with repayments then fingers crossed. Also you will probably find it is a lot cheaper than renting at the moment. we have chose a fixed rate to cover the time whilst i am studying so there is no extra pressure and our repayments are around the £240 mark to give you an idea.

superfran_uk

19jeni89 wrote: »

Superfran you don't need £4000 in savings its a minimum of £2000 - obviously 4 is better though.

Yes a mortgage is a big thing buy as long as your sensible and dont stretch yourselves with repayments then fingers crossed. Also you will probably find it is a lot cheaper than renting at the moment. we have chose a fixed rate to cover the time whilst i am studying so there is no extra pressure and our repayments are around the £240 mark to give you an idea.

It depends where you live I suppose. We have been told £4000.
£2000 would just about cover stamp duty on a 2 bed house and that's before solicitors (£600) homebuyers report (£525) etc. I live in the South East though, where if anything there are too many buyers and not enough properties, and house prices haven't really taken the hit they have elsewhere, much to my dismay!

Also £240 a month?? We have been quoted £830! Another bonus about living where we do, ahem.

Georgie4

Depends where in the country you are - new builds in my area start at £65k for a shared equity 1 bed flat with a national housebuilder - they will also pay a 5% deposit. There is no stamp duty on properties up to 125k at the moment but it is a viscious circle - you can either buy a new build which will be more expensive but they will pay a deposit and generally do a shared equity deal or you can buy an older, cheaper property but have to find a deposit. Whatever you look at 73k is not going to get you much anywhere , sorry not what you want to hear

19jeni89

Georgie is right, it won't get you much but does depend on where you live.

We have bought a 1 bed coach house with a garage for 75k which is really good in comparison to what you can get here for 75k plus you have to weigh up positive/negatives. is an extra bedroom worth it if you live somewhere which will be hard to sell in the long run. Plus on new builds there isnt a homebuyers report and not as much to go wrong as older property, depends how much time you can invest in rennovations as well. as for us we wouldnt have the time for gardens and bedrooms to decorate and kitchens/bathrooms to replace.

poppysarah

Don't buy a 1 bed flat. Ever.