Mortgage time...

tim_n

Although I'm jumping the gun a little I've been offered a job starting at £27,000 a year. I'll be 24 in June. Finally this means I can get my little legs onto some sort of housing ladder...

I have around £6,000 in student debt, £2,600 in an ISA, £2,000 in savings. I'm currently living at home entirely free having returned from 6 years living in Norwich, renting.

My car is 6 years old and starting to look a bit tatty

My parents will guarentor me if required and have a very good credit rating though they're looking to top up their pension and pay off the mortgage.

With what I would describe as hidden evil mortgage monkies lurking out there in the financial forest, I'm a little unsure of what to do. I really want to move out now - otherwise I will end up killing my dear parents, thought this wouldn't be too much of a bad thing as at least I'd inherit the house... hmm...

Joking aside, I do urgently need a place to go unless there is going to be sky high interest rates on the horizon - I'll be stretched because of the area I'm looking to live in (Essex, near Hockley/Chelmsford). Meantime I can sit back and start saving.

So what kind of mortgage is going to work for someone my age in my position? I've not got a clue

herbiesjp

What house prices are you looking at?

tim_n

until I have an idea of what kind of mortgage I can aquire then I won't know the value I can look at to be honest!

Joe_Bloggs

Lets say you borrowed £100,000 that is 3.7 x Income. Are there any properties for sale in your area of interest for this amount ? How long do you expect to stay in your job location ? If it is less than two years then the one off costs of mortgaging make renting more suitable.
J_B.

tim_n

I'm hoping this is a job for life - it is certainly being touted as such and with good transport links directly into london locally it's not too much of a problem (or so I hope)

1 bedroom flats start around £120,000 :- (

herbiesjp

Are you a graduate?

What incomes do your parents earn?

Do they have any financial commitments outstanding i.e. mortgage/loans etc

tim_n

I was a graduate in 2003, my parents have a combined income of above £100K. They are working on their mortgage and paying into the pension pot. No loans as per se and could easily increase their mortgage by about £250k

herbiesjp

You may be able to look at around £137k on your own

If you are looking at a guarantor mortgage - the the mortgage amount could be a lot higher based on the income of your parents

However - what kind of deposit you have will impact greatly on the deals available

tim_n

Thanks Herbiesjp - just got back from Ireland and I'm just looking at my options - I may end up spending yet another year at home and bank as much of my wages to give myself a decent £15-20k deposit.

MortgageMamma

tim_n wrote:

Thanks Herbiesjp - just got back from Ireland and I'm just looking at my options - I may end up spending yet another year at home and bank as much of my wages to give myself a decent £15-20k deposit.

I think thats your best bet, save like crazy. Its important to get a good start and plan things well in advance,get clued up about money and stuff before you move to buy a house. In the meantime, if your parents really are doing your head in, get some earplugs and bite your tongue! (you naughty boy) :rotfl: