Complicated 1st Time Buyer

MrsB1982_2

I would like to thank everyone for their comments. I appreciate everything you've said and will take it on board. Nothing has definately been decided as it's all still in the early stages, I just wanted some help answering my questions.

jamesd

MrsB1982, sorry to say but the short version is that you have no chance at all of borrowing more than a few tens of thousands. Maybe as much as £20,000 due to affordability considerations that will almost certainly cap what you can borrow at that or less. You may not even qualify for any mortgage at all on affordability grounds.

What you might look into is the government sponsored partial ownership schemes. That 100,000 could pay the purchase portion leaving you renting the rest of the value. You'd participate in any house price growth on your portion so you'd still be gaining in that area, even though the price to buy the rest would increase as the property value increased.

benjo

jamesd wrote: »

MrsB1982, sorry to say but the short version is that you have no chance at all of borrowing more than a few tens of thousands. Maybe as much as £20,000 due to affordability considerations that will almost certainly cap what you can borrow at that or less. You may not even qualify for any mortgage at all on affordability grounds.

What you might look into is the government sponsored partial ownership schemes. That 100,000 could pay the purchase portion leaving you renting the rest of the value. You'd participate in any house price growth on your portion so you'd still be gaining in that area, even though the price to buy the rest would increase as the property value increased.

Im no expert on these schemes, but when I was looking to buy earlier this year I did make a few phone calls to companies that ran the schemes local to me. I had enough of a deposit to pay for 40% and asked if it was possible to buy my portion outright and rent the remaining 60% - not possible was the answer, since you 'must' have a mortgage on your side of the property. Now I dont know if this is indeed true, or even if I completely misunderstood - but worth checking thoroughly before getting your hopes up.