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FTB if you've come off the ladder?
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cashorcheque
Posts: 116 Forumite
Hi,
My husband and I are selling our home. After we've paid the mortgage and the estate agents' fees we will only have a deposit of about 5% of the value of any new home we could buy, so I doubt we're going to get a mortgage (if anyone knows any 95% lenders out there, let me know - we have excellent credit ratings, joint income £63k, though we also have a personal loan we pay £378 a month on and a car on HP at £154 a month).
Anyway, unless we find a lender or get a gifted deposit of the other 5% from a builder (anyone tried to do this? do we have a chance?) we're going to go into rented in our new area and save for a bigger deposit. My real question is, when we do go back onto the property ladder are we classed as first time buyers because we're not on the ladder? Or do we not count because we've already owned a home in the past?
If we'll end up qualifying as FTBs again, it will make it more sensible to rent for a few months or a year because we'll get a better deal, I suppose?
My husband and I are selling our home. After we've paid the mortgage and the estate agents' fees we will only have a deposit of about 5% of the value of any new home we could buy, so I doubt we're going to get a mortgage (if anyone knows any 95% lenders out there, let me know - we have excellent credit ratings, joint income £63k, though we also have a personal loan we pay £378 a month on and a car on HP at £154 a month).
Anyway, unless we find a lender or get a gifted deposit of the other 5% from a builder (anyone tried to do this? do we have a chance?) we're going to go into rented in our new area and save for a bigger deposit. My real question is, when we do go back onto the property ladder are we classed as first time buyers because we're not on the ladder? Or do we not count because we've already owned a home in the past?
If we'll end up qualifying as FTBs again, it will make it more sensible to rent for a few months or a year because we'll get a better deal, I suppose?
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Not sure how 95% ltv is doing to be honest. I image its tough.
You will be regarded as FTB in 12 - 24 months but most lenders. But it does vary."Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00 -
It amazes me how anybody could have so little savings when they have a combined income of £63,000. Surely it can not be that hard to save for a bigger deposit with that sort of income?0
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It amazes me how anybody could have so little savings when they have a combined income of £63,000. Surely it can not be that hard to save for a bigger deposit with that sort of income?
Took the words right out of my mouth, probably only getting half the story.
Rent for a year or two and save up a proper deposit and you should be in better position to get a better rate.
I don't think there are many lenders wanting business at 95% LTV.0 -
Took the words right out of my mouth, probably only getting half the story.
Rent for a year or two and save up a proper deposit and you should be in better position to get a better rate.
I don't think there are many lenders wanting business at 95% LTV.
I was going to say something similar along those lines but if these guys are London based, 5% will be anything between 10 - 50% anywhere else and £63k probably wont go very far. But then they could be in East Anglia......0 -
Sorry to have 'amazed' you ... we're both in our mid-twenties, I was a student until two years ago studying for a PhD on £10k a year, my husband is a teacher who was promoted last year. Our mortgage is £1275 a month. His parents are a train driver and a stay-at-home mum, my mum is a single parent aerobics instructor, so we don't get 'gifts' from them. We are now a university lecturer and a teacher, we pay pensions and student loans, and it has taken us this long to get ourselves established and save the other 5%.
I wish people would offer the advice they're asked for or !!!!!! off, quite frankly.0 -
A case in point: uzubairu, I actually said in my post that unless we find a mortgage, which we know is unlikely, we are going to do exactly what you suggest and rent. Amazingly, we thought of that by ourselves. My question was at what point, if any, we will be considered first time buyers again.0
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cashorcheque wrote: »My question was at what point, if any, we will be considered first time buyers again.
I don't think FTBer "status" matters or even really exists.
If you're not in a chain then aren't you a FTB?0 -
It's just that Halifax, Nationwide, etc, appear to be offering 95% mortgages to first time buyers only, and others offer better rates to first time buyers. Thanks for that, though - I'm sure you're right that in practice it doesn't really make any difference.0
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cashorcheque wrote: »Sorry to have 'amazed' you ... we're both in our mid-twenties, I was a student until two years ago studying for a PhD on £10k a year, my husband is a teacher who was promoted last year. Our mortgage is £1275 a month. His parents are a train driver and a stay-at-home mum, my mum is a single parent aerobics instructor, so we don't get 'gifts' from them. We are now a university lecturer and a teacher, we pay pensions and student loans, and it has taken us this long to get ourselves established and save the other 5%.
I wish people would offer the advice they're asked for or !!!!!! off, quite frankly.
Yes, suppose I was a bit harsh there. I dont know how much your 5% is do I. Was just comparing you to my circumstances were me and my girlfriend have a combined income of about £25, 000 and are managing to save £1000 a month. Admittedly we have nothing like the overheads you do. My apoligies.0 -
Oh no, I feel really guilty now. £1000 a month though - that's impressive. Once we get into rented, hopefully, we'll be able to save a lot more. We would be paying £700 a month to rent our current home, and the mortgage is almost double that. So we should be able to save quite quickly.
Good luck with your savings.0
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