Hopefully first time buyer - advice needed!

Katiejo42

Had a quick search and I don't think there is a similar thread

Basically, at the moment we live in a house owned by our employer, who pays all our rent and bills, but we get a pitifully low salary. It's fine though, because it's all expendable income :T

We are leaving in July though, and starting a new job halfway across the country in September. When we interviewed, we were told there was no accommodation available at new job, but that they would keep an eye out for us and we would be given a fairly decent wage.

Basically, after 4 months of negotiating and (hopefully) a little help from HomeBuy, we have managed to get a mortgage (based on new income starting in september) for July, on a beautiful 4 bed new build, with mortgage repayments that will be incredibly low (around £350 pcm fixed) and a 3.2% interest rate.

New job rang up this morning. They have a house for us, and do we want it. Thing is, we are still waiting on paperwork from HomeBuy (could take up to another 3 weeks) by which time our dream house may have sold (can't reserve without the HomeBuy certificate) and then we have nowhere to live.

Can I buy the house, and live in the work accommodation?
How many weeks a year would we have to live in the new house to maintain a residential mortgage (e.g not change it to buy-to-let)?
Could I have a 'lodger' (actually my sister) living in the house whilst we aren't in it and paying a small amount of rent? (I hear you can charge up to £4kish without paying tax)

What would you do?? Stick with buying house? Forget and live in work flat?


Sorry, but this is all stuff I'm scared to ask the mortgage lender. It took such a long time to negotiate the mortgage, and if HomeBuy don't think it's residential they won't let us on the scheme.

Thank you!!

pawpurrs

Is the work accomodation free? If it is I would go for that and save like billio, and buy without one of these schemes.

not_loaded

Try to get both houses - one will probably fall through

I voted for ‘both’. If it works out for you with the mortgage and house purchase you can then just give up the job accommodation.

For the earlier work you say: ‘It's fine though, because it's all expendable income’. That’s probably not the best way to look at your income. If you finally opt for the job accommodation, ensure you start putting money away with a view to the future and what you might want to do.

My sister had tied accommodation for the first 25 years of her working life, didn’t save a penny, and now moans like crazy to her siblings who are ‘lucky’ because they have property. They didn’t win it, they earnt it.

Good luck in your decision!

Katiejo42

Thanks not loaded. Very good advice.

I say 'expendable income' as in we are not tied to any payments each month. We have been saving like mad (which is why we have a £25k deposit now!)

The work accommodation is rent free - but we would be expected to pay bills/council tax etc on the property this time, and salary would be significantly reduced.

Not only that, but for the privilege of living on site, my husband would be on call 24 hours a day, 7 days a week - which as we have learnt from current job is not that much fun for our kids.

The ideal is definitely to have our own place, it just seems so risky!