buying a house advice needed

nickygen

hi all,

i'm in process of trying to buy a house

i'm currently looking for a job and am confident i will find one in the next few months, will expect to be earning between 11-15k p.a.

i own 3/4 of my (inherited mums) house and want to keep the house by raising 24k to give to my step dad for his 1/4.

Obviously i'll need a job does anyone know how long it'll take of working before i am eligible for a mortgage. Also would a loan or a mortgage be best for the 24k. I aim to scrimp and save while working and pay it off as quick as possible.

Thanks a lot

Nick

CloudCuckooLand

You'll need 6 months employment. And decent credit history.

Same as last month. https://forums.moneysavingexpert.com/discussion/2817764

nickygen

cheers

i was told 3 months last time that why im checking, i have to be able to get the money in a tight timeframe or i won't be able to do it.....

also i am very interested to hear what people might think is best (or possible) in this situation - a loan or a mortgage

what does a good credit history mean in this case

Doozergirl

I'm not even sure you can get a mortgage for less than £25,000? You get a much better rate of interest with a mortgage but you have to pay arrangement fees.

Depending on how long you want to take to pay it off, you'll have to work out where the break even point is cheaper rate + fees versus higher rate on a loan. The loan commits you to paying a higher amount each month whereas a mortgage you can offset or overpay, which might give you a bit more flexibility.

nickygen

thanks doozergirl thats really helpful information, i want to take up to 5 years to pay it off and being able to overpay installments would be a great option

i was wondering about the possiblities for geting a mortgage for such a small amount (relatively), its a strange amount, more than your usual loan amount it seems but less than any mortgage, im only 25 and this is a big step for me so just trying to find out some advice

also a bit worried if i am an office temp whether that will stop me being able to get a loan

its a minefield!

ta!

mark5

On an income of 11-15k I think you will struggle to repay 24k plus interest over a period of 5 years.

carefullycautious

Quote;

' Obviously i'll need a job'

WHat have you been doing since you left school. You make this sound as if you really wouldnt bother to work if it wasnt for this predicament. Please tell me this isnt so.

Is there equity in the house that you could release to pay your stepdad

nickygen

carefullycautious wrote: »

Quote;

' Obviously i'll need a job'

WHat have you been doing since you left school. You make this sound as if you really wouldnt bother to work if it wasnt for this predicament. Please tell me this isnt so.

Is there equity in the house that you could release to pay your stepdad

well, i left school after doing my a-levels worked for a year as well as following other interests, went to university and got a 2.1 in environmental sciences at a good uni as well as working part time while at uni (usually 24 hours a week on top of a demanding course) i also worked during the summer as a waste disposal man at a hospital and then as a full time landscape gardener when i left uni, as well as working part time as a reseach technician at uni. i had to move as my mum contracted terminal cancer and went back nearer to home, worked in a bakery and then a call centre and then as a project manager at a laboratory. all this was continous employment, after my mum died i worked for 6 more months in my role but needed a break so saved up to go travelling with my partner. I returned to England with my partner to have a baby and was looking for a job, my baby was born prematurely at 24 weeks and died in intensive care, i have had a bit of a hard time trying to support my partner after this but am now fully looking for work again.

i feel i should explain that fully as people seem to deem you as not wanting to work if you are unemployed, whereas that is by no means the truth in my case.

I am confident i will find work as i have good references and am prepared to work anywhere if it comes down to it......

The equity i have in the house is i presume the 3/4 of it i own, the houses mortgage has been fully paid by my mum before she died (with my step dad contributing what was deemed 1/4 of the houses value at the time to pay off the mortgage when my mum fell ill). He now wants that money back to help do up a new house he has bought with his savings. He has agreed to take £24,000 for his stake which is less than what it is worth (the house valued at 140,000 would then be fully mine) and my partners family have said they would contribute between £3-5,000 to help, so i may only be looking at a loan of about £20,000 pounds to make this happen.

I will be hoping to earn in the region of 1,000 pounds at month (net) when i do find employment, of this i would want to spend about 300-400 a month paying off the loan (comparable to a rent)

I really thank you for the advice, i am not particularly financially minded and still quite naive in this area.

Hope i have not gone on too long,

thanks

Nick

nickygen

i realise £300-400 a month is not enough to pay it off in 5 years, but when my partner is well enough to return to work we would then be in a position to pay more than that a month

hazyjo

nickygen wrote: »

i realise £300-400 a month is not enough to pay it off in 5 years, but when my partner is well enough to return to work we would then be in a position to pay more than that a month

But a bank or whatever won't lend you such a large sum on that basis! And, tbh, I think you'd struggle to get a loan for several thousand, let alone £20k!

Sorry to hear about all your troubles. Hope you have a very bright future ahead of you.

How are you affording to run the house at the mo?

Can you not just sell it and you use the money as a deposit and pay your step-dad 25% of the profit? I presume when you say you're buying a house, you mean this one and not another one...

You might have to consider a mortgage on the property for 10 years or so for whatever the minimum is you can borrow as a mortgage. Your step-dad would have to wait! I'm not sure legally where you stand if he wants his 25% now... I'm sure someone will advise as to whether he can force a sale...

All the best,

Jx

nickygen

cheers jo seems like a mortgage would be the only option then