Mortgage advice from a newbie

clunged

OK

I have saved, over the years £35k. Me and my partner now want to purchase a house. We currently live in a property owned by my father.

I only earn 13.5k p/a. Went to a mortgage advisor who advised due to the amount I earn we would require nearer to a 70k deposit on a house worth approx £120,000. We suggested my partner also go out to work however we have a son and the childcare costs would mean that it would barely make a difference.

We've just started looking into part buy, part rent options but I don't fully understand how it would work.

Does anyone have any suggestions? Or if there are thread that you could direct me to?

Thanks in advance

Blacksheep1979

with a 35k deposit you're looking at 6.3 times your salary and even interest only you'd be looking at 450 a month with full repayment being about 600. Can you afford that on a 13.5k wage?

Shared ownership is all but a scam, the prices for the share you buy are over inflated and there's normally strict rules about renting it out/who you can sell it to - I honestly wouldn't bother buying a house if that was the only option. Not trying to sound nasty here but some people just can't afford to buy a house and it's a fact of life - say thank you to Mr Brown on May the 6th for this.

clunged

So what do I do with my 35k? Hookers and blow?

andrewmp

clunged wrote: »

So what do I do with my 35k? Hookers and blow?

Keep it saved? Buy a cheaper house? Where do you live, is there nothing cheaper than £120k?

Blacksheep1979

clunged wrote: »

So what do I do with my 35k? Hookers and blow?

Continue saving for a house (there may be more of a fall), save to put your kids through uni or for your old age splash it out on a nice car? I don't know or tbh really care but nobody is going to lend you more than 6 times your salary.

Fire_Fox

clunged wrote: »

OK
I have saved, over the years £35k. Me and my partner now want to purchase a house. We currently live in a property owned by my father.

I only earn 13.5k p/a. Went to a mortgage advisor who advised due to the amount I earn we would require nearer to a 70k deposit on a house worth approx £120,000. We suggested my partner also go out to work however we have a son and the childcare costs would mean that it would barely make a difference.

Is there any reason your partner cannot work different hours that you work, say evenings or weekends whilst you take care of your son? Or are you willing to take on a second job? As you have been told you do not have enough income to be a homeowner, unless you are willing to change your lifestyle you may have to accept renting.

Please do not underestimate the costs of homeownership, you will need money for ongoing repairs, maintenance and redecoration, and if you are unable to work for any reason (redundancy, illness) the government will not pay your mortgage for the first three months. This may change for the worse after the election as the Conservatives are promising cuts.

VIGILANT22

clunged wrote: »

OK

I have saved, over the years £35k. Me and my partner now want to purchase a house. We currently live in a property owned by my father.

I only earn 13.5k p/a. Went to a mortgage advisor who advised due to the amount I earn we would require nearer to a 70k deposit on a house worth approx £120,000. We suggested my partner also go out to work however we have a son and the childcare costs would mean that it would barely make a difference.

We've just started looking into part buy, part rent options but I don't fully understand how it would work.

Does anyone have any suggestions? Or if there are thread that you could direct me to?

Thanks in advance

On 13.5k are you in receipt of Tax Credits?...You must look at this realistically, your income is very modest, therefore the lending is going to reflect this......Shared Ownership can also work out expensive as then you have part mortgage/part rent

mufi

Contrary to the impression given by lenders/the government/old Uncle Tom Cobley and all, some people are better off renting than buying, and you seem to fall into that category. If you are on a low income, there is much to be said for paying a set amount of rent, and knowing that this is your only monthly outgoing for housing, repairs and maintenance.

Plus, if you cannot really afford the repayments now, what will you do when (not if) interest rates go up?

Blacksheep1979

Fire_Fox wrote: »

This may change for the worse after the election as the Conservatives are promising cuts.

don't you mean the better - houses will have to be sold thus dropping prices.