Can I buy a house?

Thrugelmir

johnnydude84 wrote: »

Thanks for the quick responses.

My only issue is that where I live there are no houses available for that kind of price.

Then buy a flat.

My first property was a 2nd floor 2 bed flat in Selsdon because I couldn't afford Surrey house prices. (That was 29 years ago). Start some where and pay off the mortgage. The less you borrow initially the sooner you'll be able to make the next step up the ladder.

johnnydude84

My mum lives alone and earns less than I do so she is probably a no go. I have looked at this shared ownership thing and to be honest I do not really understand it.

Is it a case of own a % of the house but pay a mortgage but then I also pay the housing people some money as well? Once thats paid off then I own 100%?

johnnydude84

yeah i guess i can look at a flat. I just like the idea of having my own place rather than sharing it with others...be nice to have a garden and all that. Maybe I am running before I can walk.

GMS

Might be too big a stretch on income that.

Best thing to do is speak to a good broker.

Alternatively look on a couple of lender websites and try the affordability calculators. This should give you an idea.

HappyMJ

Housing associations have shared owenership properties available. If they own 25% you would need to pay a quarter of the rent for a similar property as well as the mortgage repayment. Finding them and a bank that will lend on them is difficult. You would need to save the money in an offset account and once you have saved enough you can buy the remaining 25% from them.

johnnydude84

Okay. I will have a look into other things. Thanks for all of your advice.


Just out of interest how much should I be earning to get a house at the values I have been talking about?

beecher2

johnnydude84 wrote: »

Okay. I will have a look into other things. Thanks for all of your advice.


Just out of interest how much should I be earning to get a house at the values I have been talking about?

With a mortgage of £200,000 you'd have to be earning about £55,000 I think but each case is different. A 90% LTV closes off options.

Doshwaster

johnnydude84 wrote: »

Okay. I will have a look into other things. Thanks for all of your advice.


Just out of interest how much should I be earning to get a house at the values I have been talking about?

The best mortgage rates come in at around 25% deposit and 3x salary. That means that you would be looking at earning £50,000, putting down an deposit of £50,000 and borrowing £150,000 on a £200,000 house

Going to the 4x salary and 15% deposit level you would need to be putting down £30,000, borrowing £170,000 and earning £42,500 - but the interest rates would be much higher.

Better start saving, asking for a pay rise or looking for somewhere cheaper.

On a £35,000 salary and £30,000 deposit you would be looking at somewhere in the £150-160,000 range.

Talk to an independent financial advisor. They will give you a better idea of what you can afford based upon what level of mortgage you would be comfortable with.

johnnydude84

thanks for all the advice. Parents are a no go becuse its just my mother on her own and she still has a large mortgage of her own. So it has to be on my own really.

There are cheaper places in and around croydon but the areas are...well just dangerous really and I dont really want to live in fear. I think it will be a case of holding out for a payrise, new job or much bigger deposit for the time being...there is no real rush to move but I am 26 now and dont wanna be living in my mums house forever!

hethmar

I dont know Croydon really - but this looks ok?

http://www.rightmove.co.uk/property-for-sale/property-30774446.html