In a muddle! No Cash Saved, need mortgage

Ducati_2

Firstly I do apologize if this topic has been covered before, I was unable to search the exact threads due to my poor Internet connection.

Here is my story; I have just recently got married and currently living with family. Against the odds me and my wife have out stayed our welcome (too many women in one house!). My wife is of Indian origin and has been working for approx 2 months now. As for myself I am currently looking for work as I was made redundant. We have little savings and really no support at all. Our current joint income is about £1500 pcm.

Is there anyway we could obtain a mortgage? what are our options? I'm confident I will be back in employment in due course. I am very worried and wish not to be housed in a shelter or left homeless. I will be most grateful if anyone can help with some advice. Thank You

gemstars

I would imagine with no job and no deposit you won't be able to get a mortgage. It's difficult to get a 90% mortgage never mind 100%, sorry to be the bearer of bad news.

Have you considered renting?

ILW

No way you are going to get a mortgage.
You need to be looking at other options such a renting.
Sorry.
(By the way, what is the relavance of your wifes origins?)

Ducati_2

I'm not sure about renting but maybe it is our only option. Rent to me means paying for something that will never be yours! but I suppose beggars can't be choosers:(

Ducati_2

thank you guys, it was worth a try

cattie

Ducati wrote: »

I am very worried and wish not to be housed in a shelter or left homeless. I will be most grateful if anyone can help with some advice. Thank You

Neither of these things need come into play. You have a decent income each month so you could rent a private property & who knows, you might even qualify for some housing benefit. Rents for private properties are at a low at the moment due to the recession & glut of rentals on the market means you may even be able to negotiate rent down a little bit.

DaddyBear

Ducati wrote: »

I'm not sure about renting but maybe it is our only option. Rent to me means paying for something that will never be yours! but I suppose beggars can't be choosers:(

Just like an interest only mortgage!

princeofpounds

I'm not sure about renting but maybe it is our only option. Rent to me means paying for something that will never be yours! but I suppose beggars can't be choosers

Then you have a messed-up view of the value of money (something which unfortunately is common to the majority of the population).

As alluded to above, the interest on a mortgage is dead money. A mortgage is effectively renting from the bank, although there are two major advantages - you get an option to buy the house outright at the original price and you also get to improve the place. The disadvantage is loss of flexibility to move and maintenance costs.

What is truly better as an option in theory require a financial model called a discounted cashflow analysis to determine. However, because the inputs involved are actually in the future it requires a range of assumptions that are generally pretty hard to forecast with any real accuracy. Most 'rent vs buy' calculators are b*stardised versions of this with not much use.

I could go on and get all technical but the main thing is, renting is not automatically inferior to buying with a mortgage.

superfran_uk

With no savings and no job... No. You couldn't get a mortgage. Rent a place, millions of people do it.

tek-monkey

I have rented for 10 years now because its all I've been able to do. I'd love to buy a place, but circumstances have not let that happen. I earn £1350ish a month, so not a huge deal different to yourself. There are thousands (millions) in exactly the same situation as yourself, its just how things are. You accept this and rent, or rent whilst saving heavily to help you buy. Either way, you rent.

How much rent did you pay your family? Surely its not too bad renting privately? Were you able to save anything in this time?

Catblue

Yep, you need to push all thoughts of buying a place out of your mind right now and put all your energies into finding a place to rent and getting a job. Think how nice it will be for you and your wife to have your own rented place without family interfering.

With a bit of luck, you'll soon be settled in the new place and at a new job, and then you can start to save for a deposit to buy a house in the future.