FTBI Schemes / Right to Buy - but NOT a key worker

mortgage_crazy

Dear all,

I have a query with regards all the confusing mortgage products out there.

Background

My partner and I live in Central London and currently rent our small 1 bed property @ 1250.00 per month. We are starting to think about trying to get onto the property ladder somehow but we have little money saved (around 6,000 max) and no parents or relatives to lend a hand. Given anything in London seems to be around the 200k-250k mark that means we are going to need to find 20k additional for a deposit.

I have looked at the FTBI schemes (first time buyers initative) but these all seem to mention key workers and technically we are not in this catagory. We actually earn a combined wage of more than 60,000 - from the people I have spoken to this means there is no help that can be given to us Government. Credit checks are all fine and mortgage in principle would give us up to 260k based on income/outgoings.

We both work in central London and thus London is preferred - yeah, we could work outside London but then we would have to find 10k a year to pay for our transport in. Also given I clock up some pretty horrendous hours in the world of IT the last thing I want is to add another 2 hours daily commute!

It feels as though we fall down a huge gap as people assume that we can afford a mortgage based on our wage. As you can see by our rent, the monthly payments won't be an issue - its just getting the deposit together to buy in London that for us seems impossible.

We are not key workers but we both work very hard and pay an awful lot of taxes and it just feels like there is nothing in return for it. Its no sob story and there will always be people worse off but you know what I mean! Gets you down when you feel others are getting opportunities to get on the housing ladder.

Is there no way we can ever suceed in an FTBI/Homebuy scheme? Has anyone else managed it?

Really appreciate any insight or experiences people can share :-)

Son_of_a_beesting

Hi

I think you will need to save a deposit. If you earn in excess of £60K that should not to difficult.

Also you state a 2 hour commute into and out of London and a cost of £10k. I live outside London (past Slough) but work inside London (Battersea). I use a motorbike (ok a small start up cost but should gain that back quickly) which makes my commute about 50 minutes max and costs no more than £20 a week in petrol and that could be better if I drove more economically.

If you want to live in London (or out of it) you need a deposit.

All the best.

beecher2

mortgage_crazy wrote: »

Dear all,


It feels as though we fall down a huge gap as people assume that we can afford a mortgage based on our wage. As you can see by our rent, the monthly payments won't be an issue - its just getting the deposit together to buy in London that for us seems impossible.

People will also assume you can afford to save up a deposit. You have the option of moving to cheaper rented accommodation - I have friends in London who live in shared flats and pay a fraction of what you do.

mortgage_crazy

Thanks for the replies.

Taking on London traffic on a scooter doesnt fill me with joy, and I cannot see my Mrs donning a helmet and racing round the place either!

I have friends in London who live in shared flats and pay a fraction of what you do.

I have done my years of living with people during Uni and the following years. We are a couple that live together and so sharing is not an option!

I just hoped that perhaps there were other courses of action for people that work hard, pay taxes, and most importantly would honour the repayments. Don't know why I bothered studying or working all the hours God sends - may as well be on the dole in this country in order to get assistance.

beecher2

mortgage_crazy wrote: »

Thanks for the replies.

Taking on London traffic on a scooter doesnt fill me with joy, and I cannot see my Mrs donning a helmet and racing round the place either!

I have done my years of living with people during Uni and the following years. We are a couple that live together and so sharing is not an option!

I just hoped that perhaps there were other courses of action for people that work hard, pay taxes, and most importantly would honour the repayments. Don't know why I bothered studying or working all the hours God sends - may as well be on the dole in this country in order to get assistance.

If you decide you've done your years sharing with people, then that's your choice but I do find it strange that you should think that you should get help when you can afford £1,250 a month for rent. I have to wonder how you think people on a much lower salary cope without assistance. What we do is compromise and change our lifestyle according to what we can afford, and what our ambitions are. If that means sharing a flat, or moving to a cheaper place then that'd be my choice, rather than bemoaning the fact that people on the dole get assistance.