second time buyers but cant move...please help!

pinkfairy_3

Hi, please can someone help?

Me and my husband bought our first house in 2008 for £128,950 2 bedroom mid terrace house( 2 up 2 down house) which for a couple was great. We where both working full time had a good combined income.
I fell pregnant 6 months after we moved in and after having my daughter was only able to go back part time. 3 years down the line i am still part time and we are very quickly out growing our rabbit hutch. We have looked into selling and going up the property ladder but no one will give us a mortgage even tho we have one and never missed a payment. We have some equity in the the property but thats providing it sells for the price its been valued at. The only real big thing that goes against us is we have no deposit!
Im unable to return to full time work due to very expensive nursery fees.
We are even more desperate now to move as i am now expecting my second child. We have used are finacial advisor who got our first mortgage for advise and he always comes back to us with ...unless you have 30,000 for a deposit theres no way i can get you the mortgage your looking for!

We are currently interest only and 95% mortgage and roughly have £8,000 equity and the next step up for us and this is the cheapest is £180,000 (we live in devon)
Unfortunately we dont have parents to help us out and many people are lucky to have that help.

I would be really greatful if someone could point us in the right direction or even help into getting where me need to be. Many people would say whats wrong with the kids sharing, which in different circumstances i would, but my daughter has a very rare heart defect which she often has to have surgery for and i feel its not fair on them if she need to recoperate and she has a screaming baby waking her up in the night

Many thanks
K

Wh05apk

Generally you will need at least 10% so thats £18,000 if you have £8k you need another £10k + fees.

That's assuming your incomes are sufficient, you will need about£35-£40k combined (possibly including tax credits)

pinkfairy_3

Hi who5apk.
Thank you for your reply well we definatly have that income but no way of saving 10,000 in our current situation. Just seems so silly....we are completly stuck
and so desperate to move.

pinkfairy_3

Dose anyone else have any other advice they could give or recommend advisors etc?

somethingcorporate

Could you sell and rent?

CloudCuckooLand

In selling and buying you'd incur thousands in fees, so you actually have perhaps £4k for a deposit...but even that much depends on when in 2008 you bought, because you may not have the equity you hope you have;

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=Devon&s=01 January 2008&e=01 December 2010&t=1[/IMG]


How, if you cannot save anything now, would you afford the higher council tax, higher energy bills, higher insurance costs etc etc involved in having a larger house, anyway..?

I'm afraid it also has to be said, that not only can you not afford the next house up, but if you are interest only, you may not be able to even afford where you are now...

How is your "alternative repayment vehicle" performing? If you do not have one, you definitely cannot afford where you are now. If you do have one, have you checked how its coming along at building up a lump sum to pay off the capital..?

How about earning some of those expensive nursery fees, yourself..?

Or considering an extension to provide another bedroom...

hcb42

save until you have more of a proper deposit, kids will have to share.

Thrugelmir

You need to start paying down your mortgage. Being on interest only means that you are not increasing the equity in your property. If you can afford a larger mortgage then you should be able to make a start.

sarahevie

why is it completely silly?

You can't save a deposit? Haven't paid any capital off the mortgage in 3 years? what makes you think you can afford a bigger mortgage, bills?

The kids will have to share - simples

kai666

If you are on an interest only mortgage, have you been paying off, or saving to pay off the capital? That might help with some equity?

poppy_f1

you could always get a sofa bed and sleep in the living room if you are adamant that the kids wont share
and well unless the rooms are miles away from each other its likely that a screaming baby would wake everyone up
and keep in mind baby will prob be in the same room as you for a bit anyway