Any chance of my own place?

mrstinchcombe

Just turned 24, earn £20k working in Bristol area, no debt but no savings and live at home.

Is there any chance of getting on the property ladder in the next few years?

Shared Ownership (50/50) may help me get on the ladder but is this really a viable option?

Then theres joint ownership but Im single and most my mates have partners or work commitments that are such that make this impossible.

Any advice to this rant would be fantastic!

CFC

You would be likely to be able to afford an ex council property in a charming area such as Knowle West (LOL). I wouldn't be too sniffy - providing you pick a reasonable street (and the local estate agents will tell you the ones that you don't want to live on!) it's OK as an area, and better than most people think. Some of the lenders will let you have up to 4.75 multiple on your earnings - that puts you into 95k and that should see you with something. Then if you struggle to pay the mortgage, you could perhaps find someone to share the house with you and that would defray your costs.

The problem with shared ownership is that it really works best for people who get some element of state support, because then their rent is covered. For people who don't get any state benefits of any kind, I think that you'll find the rent on the 50% that you don't own will cost you too much.

mrstinchcombe

Thanks.

Could have been worse you could have said St Pauls!

For some reason i can only find the 4 times your income lenders and not 4.75, any suggestions?

From my (albeit limited) look at mortgages for some reason it doesnt seem that you can boost the amount you can borrow from lengthening the term (ie to 35 year mortgage), just reduce the payments. Is this right or am I looking in the wrong places (which are the obvious high street banks/building societies)?

UK007BullDog

You want to speak to a broker. A lot of lenders do not have a high street presence. And there are some willing to give even more than 5x income or go on affordability. You can also go interest only for a short while (you are still very young) and switch to a repayment later once you earn more money. You can also get a 40 year mortgage and when in a couple of years time you remortgage you can then reduce it to 30 or even 25 years depending on your ability to service the mortgage. There are many possibilities, but only an independent whole of market broker can show you. Local high street banks can only advise on their products and they like to keep it "unflexible".

How about your parents, could they chip in with a deposit to boost yours?

A broker will be able to tell you how much you can get, depending on your professional status and if you have any outstanding loans or credit cards you have to pay. They can also advise you how to build your credit record if you plan to buy later in the future. But maybe you are able to buy now and do not need to wait.

HTH

mrstinchcombe

My parents are homeowners with no mortgage, but they by no means have great cash reserves or anything like that.

Bearing in mind Im one of 3 sons Im doubtful they can help me much and i wouldnt want them to, theyve worked hard and Iv been sponging off them too long its time for them to enjoy life.

I do have a good credit rating tho and a stable job (well as stable as they come). Sound advice tho my friend

F_T_Buyer

mrstinchcombe wrote:

Just turned 24, earn £20k working in Bristol area, no debt but no savings and live at home.

Is there any chance of getting on the property ladder in the next few years?

Shared Ownership (50/50) may help me get on the ladder but is this really a viable option?

Then theres joint ownership but Im single and most my mates have partners or work commitments that are such that make this impossible.

Any advice to this rant would be fantastic!

The average age of a First Time Buyer is 34, so you're not alone. It just shows how overvalued property is at the moment. IMHO property is due for a big fall within the next few years...

Checkout https://www.pricedout.org.uk lots of people are in the same boat!

lilybugs

Start saving now. Put the equivalent of your expected mortgage and bills (minus what you currently pay your parents) into a high interest/no notice account. This will build up really quickly into a deposit and show you whether or not you can afford move out.