First Time Buyer's Guide To Mortgages

singingsister

My husband and I are desperate to get on the property ladder and are fed up of throwing money at a landlord.

Our situation.
We are both in a fair bit of debt (I'm shamed to admit), me owing 20k - but meeting monthly payments, and him owing about 13k (and again meeting monthly payments).

We are looking at the government scheme where you buy a share of the property and rent a share of the property. All the paperwork says for this scheme (i believe) is that you have to earn between you more than 36k (which we do) and have savings of about 4k (which we do).

Now my credit rating in the past hasn't been wonderful, I was a stupid student,:o but in the past 4/5 years have met all monthly payments etc. Husband's credit rating is ok too.

Do you think we'd have issues getting a mortgage? I'm really worried that we'll apply for a mortgage and get turned down coz of our debt, which in turn will effect our credit rating! We pay almost £800 a month in rent, I'd much rather put that towards our own place.

I'm scared to do the wrong thing. Some advice please?

evsie

Hello All.

I am a 26 lodging and am seeking advice about the next step in my life.

I have always found mortgages and other such stuff inpenitrable to understand but this site has started to alleviate me fears

I am posting here incase anyone can offer advice or tips to try and arm me with some ideas to go on from here!

I am single so its only my income.
I earn £17,000 a year and hoping to hit £18,000 by October.
I have £4000 in savings and my only debts are the student loans company debt which I have managed to pay off from £23,000 down to £10,000

Trouble is i dont have any parents to rely on for deposits or money advice its just me.

I am seeking out whether its best to go for as cheap a place as i can so i can minimize any expenses but im also thinking that maybe going for a house and letting out rooms may be better as a more pricey house may eventually be a better investment for me (not sure tho and thats where you all come in)


Would anyone like to chip in a advise on the likely best course of action for me as im guessing maybe getting a flat may be the best start. Tho a house and letting out rooms may also be a good idea.

I have also read about the shardownership deals where you paurchase a house at 50% its price and the rest is owned by the housing group invoved.

Anyone have any tips, experience or advice that may help me find my way into getting my own place??

Thanks kindly for anyone who has read my ramblings.

Best wishes and thanks again.:T

Tim158_2

evsie wrote: »

Hello All.

I am a 26 lodging and am seeking advice about the next step in my life.

I have always found mortgages and other such stuff inpenitrable to understand but this site has started to alleviate me fears

I am posting here incase anyone can offer advice or tips to try and arm me with some ideas to go on from here!

I am single so its only my income.
I earn £17,000 a year and hoping to hit £18,000 by October.
I have £4000 in savings and my only debts are the student loans company debt which I have managed to pay off from £23,000 down to £10,000

Trouble is i dont have any parents to rely on for deposits or money advice its just me.

I am seeking out whether its best to go for as cheap a place as i can so i can minimize any expenses but im also thinking that maybe going for a house and letting out rooms may be better as a more pricey house may eventually be a better investment for me (not sure tho and thats where you all come in)


Would anyone like to chip in a advise on the likely best course of action for me as im guessing maybe getting a flat may be the best start. Tho a house and letting out rooms may also be a good idea.

I have also read about the shardownership deals where you paurchase a house at 50% its price and the rest is owned by the housing group invoved.

Anyone have any tips, experience or advice that may help me find my way into getting my own place??

Thanks kindly for anyone who has read my ramblings.

Best wishes and thanks again.:T

Evsie,

I would probably advise not buying at the moment and waiting until you have a larger deposit saved (> 20% of a property's value is ideal). House prices are expected to keep falling for at least another year so you might have that 20% deposit sooner than you think.

If you must buy, then buy a house. Owning a flat is just more hassle - you have to pay ground rent (service charges) for a start. Letting out a room in a property I think is always a good idea and rental prices are on the up at the moment. Although being a landlord will not make you rich and it can be hard work. If you can afford it, I would always opt for buying a property outright rather than part buy / part rent because that works out more expensive.

I have a website called http://www.firsthousepage.com which gives free advice to wannabe first time buyers like you. There's also an article on shared ownership schemes if you want to take a closer look at what is available.

mzdotokay

I am interested in buying but have´nt sufficient funds - seen a few places that do 50% ownership but not quite sure what this entails - what are my rights and what are theres and will my rent/mortage repayments be 50% less?

Jennpy

Hi there...
I am a Spanish key worker looking to settle in the UK. I need to move by Sept from my current accommodation and I am very confused as to what to do. Options are: renting, shared ownership or buying something modest who knows where. It seems that this is not the time to buy however, some people seem to think that prices wont go any lower and you may find good prices. Oh, I dont know. I would appreciate any suggestions or comments as to what might be best.

MANY THANKS and sorry if this is not the correct forum for this questions...

Doozergirl

It is the correct forum but if you want lots of replies you have to start a brand new thread on the board rather than posting something extra on this thread.

But everyone on this board would be in agreement when they say that prices certainly will not get any higher for a while yet. I don't get myself involved in the debate but by the complete lack of funds that were available to buyers this time last year, prices are going nowhere fast. It won't get away from you any time soon.

aft1

Hello

I have posted this elsewhere on the website but came across this thread and thought it may be better suited to my question.

My girlfriend and I are looking at buying a house possibly after xmas, however we do have a problem.

We both have decent jobs with good prospects, my girlfriend earns around £21k per year and i earn around £21k per year with a car, phone, etc.

However due to past difficulties which i am not proud of i am a bankrupt, i have a 7 year bankruptcy undertaking meaning i cannot obtain a mortgage during that time, or will find it very difficult to do so.

My girlfriend is the exact opposite and she has a perfect history and with the exception of a student loan which is now paid off she has never borrowed a penny in her life.

I have a £250 per month repayment for an IPA from my banruptcy and as i still live with my parents i don't have a lot of other outgoings.I take home around £1100 per month with around £500 free per month after housekeep, etc and the housekeep, etc could go towards the mortgage.

My girlfriend does not have that much spare cash each month as she pays £400 rent, and £200 bills but this could obs go towards a mortgage. Due to a relative of hers we have a £10k deposit for a house and a joint monthly income of around £2350 per month.

When it comes to applying i am aware the moment my name goes on an application it will be rejected so the mortgage would be in my girlfriends name only.

However is there a way that my income could be taken into consideration to obtain a larger mortgage ? We have looked and there are properties for around £130k we like but again all my fault i cannot obtain any mortgage.

My girlfriend could probably get £80- £90k mortgage with a £10k deposit but is there any way i can help without been included on the mortgage ?

Also further down the line we would like children, however again same problem if my girlfriend in say 5 years is part time and we have kids, etc and i am full time is there a way we could renew / obtain a new mortgage in her name but with my income been taken into consideration ?

I should say i will never borrow money again except for a mortgage ( if i can ) in the future.

Thanks for reading this post and i am sorry for the questions, my past problems are affecting our future and we are looking for any advice possible.

Kind Regards

Adam

shinyfeet

I have a similar situation and I have discussed with my mortgage broker taking a self-cert mortgage, using the rent money my 'bankrupt' partner will contribute as additional income. The property and the mortgage will be only in my name so there is a huge amount of trust. I trust him to not leg it and leave me with a mortgage I would struggle to pay on my own. He has to trust me that I wont throw him out or when it comes to selling that I will give him, his share of the equity.

tootiefrooties

savelife wrote: »

Can someone help me with my quiry here please?

no bank is giving out 100% mortgage these days not even 95% (if any bank is giving pls let me know)

HSBC offer 90% as standard or 95% if you are a graduate. Halifax were offering 97% until a month ago (b0ll0cks, wanted to take that offer!!!) but have since dropped to 95% which is still high compared to the rest of the market.

We are saving for a deposit but I don't think we'll ever save enough because they keep moving the goalpoasts

mrloelisi

Hi, reading through the posts I have learnt a lot about buying a house for the first time, but I could do with some specific information if you don’t mind.

My partner and I (first time buyers) want to buy a house. She is an assistant manager in retail earning 18.9k including tax credits and the sorts, I am a student and work part time earning 7k plus I have a student loan of 6k.
Therefore total income is 31.9k

She has a loan outstanding of 3k as well as a HP agreement - I have a mobile phone contract and a credit card with 1.5k on it.

Does this mean that we can get a maximum mortgage of 95.7k? If so it puts me in a pickle...

We have looked at Persimmons initiative for first time buyers 'helping hand' which looks good, does anyone know how these things work? Persimmon I know is basically you only pay 75% of the mortgage and only have to pay the remainder after 10 years (or something along those lines)

Is now the right time to buy a house with the market being so volatile?

We are looking at buying a new house simply because there seem to be these initiatives in place only on new houses do you have any better ideas?

What would you do in my situation?

Any more details needed just let me know - I really need help with this.

Thanks


Mrloelisi